The clock is ticking for 2018 FATCA and CRS annual submissions, as the reporting deadline to the relevant Tax Authorities is set between end of May and July, for most participating jurisdictions. The reporting deadlines for a number of jurisdictions are provided below:
The “Foreign Accounts Tax Compliance Act” (FATCA) reporting obligation has been live since 2015, when the first exchange of information took place. FATCA provisions require the various Countries’ tax authorities that have set an intergovernmental agreement with the US, to obtain details of account information from Financial Institutions relating to US investors and exchange that information automatically with the United States “Internal Revenue Service” (IRS), on an annual basis.
Following the FATCA implementation, the “Organisation for Economic Co-operation and Development” (OECD) has taken similar steps to improve global cross border tax compliance and fight tax evasion, releasing the Common Reporting Standard (“CRS”). The CRS is again a set of standards for the annual exchange of financial information between countries around the world that have signed the “Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information”. Around 100 countries have already committed to adhering to these standards, with the first exchange of reports taking place in 2017 (to see full list of countries click here). Similar to FATCA, under CRS, Financial Institutions should look through their financial accounts and report details of accounts held by tax residents’ of other participating jurisdictions, to their home country tax authority.
There are a number of challenges and technicalities that should be addressed in order to be able to proceed with the relevant submissions before the deadline. For example, a Tax Identification Number (TIN) must be collected for all new accounts, while some alternatives (e.g. personal identification code) may apply for pre-existing accounts, depending on the jurisdiction of the Financial Institution. Likewise, some of the Tax National Authorities require a separate XML file submission, for each reportable jurisdiction the Financial Institution has reportable accounts for. Thus, Financial Institutions should seek to collect related data and implement any technical arrangements the soonest.
MAP FinTech, in association with its parent group – MAP S.Platis, has been assisting Clients to fulfil their FATCA/CRS obligation with technology innovation and consulting guidance, since the very beginning the reporting obligations went live. The MAP-FATCA and MAP-CRS Reporting Service of MAP FinTech, offered via the powerful Polaris Platform, provides the ability to extract, validate, transform and generate the end-report with the utilization of a user friendly interface and the guidance of our FATCA/CRS reporting experts. If you have any questions in relation to the above or would like assistance with your CRS and FATCA reporting requirements, please don’t hesitate to contact us.