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What is FATCA?

"FATCA" is the Foreign Account Tax Compliance Act, which is a United States law designed to combat tax evasion by U.S. persons (individuals or entities) that fail to report income related to non-U.S. accounts. FATCA requires some of PayPal's non-US subsidiaries to collect information from their account holders to determine whether accounts are held by U.S. persons (as defined by FATCA).

Agreements between the U.S. and many foreign jurisdictions govern the exchange of account holder information to address local bank secrecy and privacy issues that may be impacted as a result of the FATCA's requirements. Information provided to the U.S. Internal Revenue Service ("IRS") or local regulatory agencies pursuant to FATCA are also covered by PayPal's Privacy Policy.
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