On 15 March 2017, PwC’s CITT Compare Tool was updated to reflect the latest information from Taiwan and Ukraine. On 21 March, updated content for Spain was added to reflect the reporting deadlines for FATCA and CRS. Finally, on 24 March, Chile was added and updated content for Algeria and Japan was added. Please take this opportunity to re-run reports for those countries and use the latest information within your projects.
As a reminder, QIs are urged to renew their agreements prior to the 31 March deadline. Additional information can be found on the Qualified Intermediary (QI), Withholding Foreign Partnership (WP), and Withholding Foreign Trust (WT) Application and Account Management System (Link), including the QI Agreement (Link), FAQs (Link), System User Guide (Link) and System FAQs (Link).
On 10 March 2017, the German Central Tax Office (Bundeszentralamt für Steuern or “BZSt”) released an “Infobrief” where the new FATCA-XML Schema V 2.0 is published (Link-German). The new FATCA-XML Schema V 2.0 will replace the FATCA XML 1.1. In this context, FIs will again be able to transmit files to the BZSt from 19 June 2017. It is also stated that the updated Communication Handbooks will be available in April. Additionally, the AEOI-BMF-Schreiben which was released on 1 February 2017 is replacing the FATCA-BMF-Schreiben. Finally, within the new FATCA-XML Schema V 2.0, nil reporting is now possible – nevertheless it is only optional and not mandatory (see also AEOI-BMF Schreiben Nr. 120).
On 16 March 2017, Hong Kong signed AEoI agreements with six jurisdictions (Link): Belgium, Canada, Guernsey, Italy, Mexico and the Netherlands. This brings the total agreements to nine, which also includes Japan, Korea and the United Kingdom. The announcement does note that: “The Government will later amend the list of ‘reportable jurisdictions’ under the Inland Revenue Ordinance so as to include the jurisdictions concerned in the list.”
In February and March 2017, the Inland Revenue Authority of Singapore (“IRAS”) announced (Link) that it has concluded bilateral Competent Authority Agreements (“CAAs”) with Estonia on 15 February (Link), Lithuania (Link) on 24 February, Belgium (Link) and Luxembourg (Link) on 13 March, Denmark on 15 March (Link) and France on 27 March (Link) for automatic exchange of information. Under the CAAs, the IRAS will automatically exchange financial information of accounts in Singapore held by tax residents of these jurisdictions with the competent authorities of these jurisdictions for reciprocal information. In addition, on 27 February the Competent Authority Agreements for CRS with Australia, Korea, Italy, Canada and Latvia entered into force. This is in addition to the CAAs which went into effect previously with the United Kingdom, Japan, South Africa, Norway, Finland, Netherlands, Iceland, Malta and Ireland on 31 January 2017.
On 9 March 2017, the Treasury of the Isle of Man issued an Industry Advisory Notice (Link) containing information on the amended CRS regulations which came into effect on 22 February 2017 as well as information related to CRS Reportable Jurisdictions as follows:
As an early adopter of the CRS, the Isle of Man will make its first exchange of CRS information, with other early adopter jurisdictions with which it has the necessary agreements in place, by 30 September 2017.
On 22 March 2017, the U.S. Internal Revenue Service (“IRS”) released updated FAQs related to the FAQs for the XML Schema v2.0 (Link). The relevant questions which were updated are highlighted below:
- What is the FilerCategory element? When may the FilerCategory be used?
- When may the AccountClosed element be used?
- When may the AccountNumber element be used?
On 17 March 2017, the U.S. Internal Revenue Service (“IRS”) released updated FATCA — FAQs General addressing QDD questions raised in relation to the application process (Link). The relevant questions which were updated are highlighted below:
- How does an applicant provide the description of the types of transactions for applications submitted in 2017?
- How does an applicant provide the approximate value of transactions by account holder type for applications submitted in 2017?
- What information must an applicant provide when describing why it is an eligible entity?
- What information is necessary to describe how an applicant determines which transactions are included of its QDD business?
The Internal Revenue Service (“IRS”) recently released Rev. Proc. 2017-21 (Link) which sets forth the updated withholding foreign partnership (WP) and withholding foreign trust (WT) agreements (collectively the 2017 WP/WT Agreements). WP and WT Agreements generally allow foreign (non-U.S. organized) partnerships and foreign trusts to simplify their U.S. tax withholding and information reporting responsibilities by assuming primary withholding obligations under Chapters 3 and 4 of the Internal Revenue Code (Code) for certain payments of U.S. source income (such as interest, dividends, and royalties) allocated to its direct partners, beneficiaries, or owners and, in some cases, to indirect partners, beneficiaries and owners.
On 3 March 2017, PwC’s CITT Compare Tool was updated to include Mexico. On 7 March updated content for South Korea was added. On 8 March updated content for South Korea was added. On 9 March, the CRS reporting deadline was updated for the Cayman Islands. Please take this opportunity to re-run reports for those countries and use the latest information within your projects.