What is FATCA and what do I need to do to complete the requirements?
FATCA stands for "Foreign Account Tax Compliance Act." FATCA is a United States law designed to combat tax evasion by US persons (both individuals and entities) that fail to report income related to non-US accounts.
FATCA requires some of PayPal's non-US subsidiaries to collect information from their account holders to determine whether accounts are held by US persons (individuals or entities) as defined by FATCA.
In order to use PayPal services, non-US PayPal account holders need to complete FATCA requirements by answering a series of questions and possibly provide documentation.
New account holders: We'll ask you to complete certification that complies with FATCA. You must complete this certification within 90 days of opening your account, or you won't be able to send or receive money using your account.
Existing account holders: We may ask you to provide more information to ensure we've properly documented your FATCA status (as a US or non-US person). You must provide the requested information within 30 days from the date we request it, or we'll limit your account on day 30. The day 30 limitation will prevent you from:
- Sending money
- Closing your account
If you don't provide the required information within 45 days from the date we request it, we may further limit your account on day 45. This day 45 limitation will prevent you from:
- Sending or receiving money
- Removing bank or card details
- Closing your account
In each case, the limitation will apply until we receive the proper documents.
Here's how to complete the FATCA requirements:
- Log in to your PayPal account.
- Click the Notifications icon at the top of the page and follow the link.
- Confirm your tax status.
- Input your personal or business information as requested.
Read and review the certification before signing it with your electronic or written signature. False statements may lead to penalties under applicable law. If you have any questions or concerns regarding the form, it may be beneficial to contact a tax advisor.