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The Foreign Account Tax Compliance Act (FATCA) was passed by the US Government in 2010, which took effect from 01 July 2014. The main purpose of the Act is to prevent tax evasion by US Individuals/Entities through financial accounts held at non-US financial institutions (FFIs).

On 01 April 2016, the Government of Vietnam and the Government of the US signed an agreement to implement the Tax Compliance Act for overseas accounts of US citizens, Model 1B (IGA 1B Agreement) in Vietnam. IGA 1B Agreement has been enforced from 07 July 2016, according to which, all financial institutions in Vietnam, including the BIDV-SuMi TRUST Leasing Company Limited (“BSL”), are required to comply with FATCA from 07 July 2016 under the IGA 1B Agreement.

To implement FATCA in Vietnam, authorized representatives of the United States and Vietnam signed a Competent Authority Agreement between the Competent Authorities of the United States of America and the Socialist Republic of Vietnam – CAA Agreement) on 16 October 2016. Further, the State Bank of Vietnam issued Official Letter No. 6226/NHNN-TTGSNH dated 07 August 2017, guiding the implementation of FATCA in accordance with the signed IGA 1B Agreement.

As a registered FATCA-compliant financial institution, BSL commits to fully complying with the requirements of the FATCA and to developing and implementing the necessary procedures to meet FATCA requirements on customer identification, classification of tax-liable entities, as well as the withholding and reporting of income subject to FATCA.

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