Reporting obligations for financial institutions on non-resident taxpayer accounts (DAC2/FATCA)

DAC2 requires EU Member States to obtain information from financial institutions in their jurisdiction and exchange it with the Member State where the taxpayer has tax residence. Moreover, it provides the financial institutions subject to reporting, the financial account information to be exchanged, the different types of accounts and taxpayers covered and the procedures to be followed.

This legal framework aims to increase transparency between states and combat tax evasion. Both FATCA and DAC2 are enacted in the Romanian Procedural Code.

In this regard, the following aspects are important

• The obligation of Romanian financial institutions to identify account holders (both individuals and entities) who are not tax residents of Romania or who are U.S. citizens and to report to the National Authority for Fiscal Administration (“NAFA”) relevant information regarding financial accounts.
• The reporting financial institutions need to analyse the financial accounts they manage and apply tax due diligence measures to identify reportable accounts, and for these, they need to report the relevant information to NAFA.
• The information received by NAFA through the reporting scheme is exchanged with the tax authority of the jurisdiction in which the account holder is resident for tax purposes.
• The financial institutions in Romania fulfill their reporting obligations under DAC2/FATCA by submitting the form F3000.

How can we support you

• Review of policies and procedures implemented for meeting DAC2/FATCA reporting obligations;
• Review of the types of clients from the DAC2/FATCA standpoint;
• Identification of reportable accounts;
• Review of DAC2/FATCA files to ensure its compliance with the legal requirements;
• Tax advisory services on request concerning DAC2/FATCA provisions.

If the above is of interest to you, please do not hesitate to contact us.

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