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.