Romania: FATCA intergovernmental agreement

Romania: FATCA intergovernmental agreement

June 16: An intergovernmental agreement (IGA) signed between Romania and the United States follows the Model 1 IGA, and involves a reciprocal automatic exchange of information between the tax authorities of the two countries, with the effect that information is sent by financial institutions through the relevant tax authority (in Romania, the Agentia Nationala de Administrare Fiscala – ANAF).

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The IGA with Romania was signed 28 May 2015. Read text of the Model 1 IGA [PDF 268 KB] with Romania.

In general, the IGA provides:

  • No withholding tax will be applied in the United States on income derived by financial institutions in Romania.
  • No withholding tax will be applied by Romanian financial institutions on income received by clients who are U.S. residents.
  • The exchange of information process has been simplified (i.e., financial institutions no longer need to report directly to the U.S. tax authorities).
  • Romanian financial institutions will issue their first report containing information related to the financial year 2014 no later than 30 September 2015.

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