Vietnam – FATCA reporting guidance
April 2: Guidance from the State Bank of Vietnam provides financial institutions and branches an automatic 90-day extension of time in which to file their FATCA reporting forms.
Therefore, financial institutions have until 30 June 2015 to file their FATCA reports to the U.S. tax agency (IRS).
KPMG observation
Pending the official signing of an intergovernmental agreement (IGA) between Vietnam and the United States, financial institutions need to consider continuing their implementation of the FATCA requirements and satisfying their reporting obligations by 29 June 2015.
Official Letter 851/TTGSNH11(‘OL851’)
On 27 March 2015, the State Bank of Vietnam (‘SBV’) issued Official Letter 851/TTGSNH11(‘OL851’) providing further guidance to financial institutions and branches of foreign banks (hereinafter referred to as financial institutions – FIs) for implementation of Foreign Account Tax Compliance Act (‘FATCA’).
In accordance with OL851, the negotiation for conclusion of the Intergovernmental Agreement (IGA) between Vienam and the U.S has reached key agreements. FIs registered GIINs with the Internal Revenue Services (‘IRS’) continue implementing FATCA reporting requirements with the following notes:
1. Report to the IRS in accordance with new FATCA reporting deadline
In accordance with Instructions for completion of FATCA reporting form – Form 8966, for reporting with respect to calendar year 2014, an automatic 90-day extension of time to file Form 8966 will be provided. Therefore, for 2014, FIs should report to the IRS before 30 June 2015 or in accordance with official guidance from SBV’s Banking Supervisory Agency.
Note that, branches of foreign banks in Vietnam are not allowed to report directly to their parent banks or foreign partners prior to approval of the Governor of the SBV.
2. Reporting format
In accordance with guidance from the IRS, information reporting to the IRS will be under XML format. SBV requests FIs to study XML reporting material and instructions at the following address:
http://www.irs.gov/Businesses/
While waiting for official signing of the IGA, KPMG recommends FIs to continue implementing FATCA requirements and ensuring that reporting obligations are completed by 29/06/2015.
