CITT Compare Tool Update: Denmark added and data updated for Canada, Indonesia, Poland and Switzerland

On 4 May 2017, PwC’s CITT Compare Tool was updated to include Denmark and to update the content for Canada, Indonesia, Poland to reflect the latest information.  In addition, on 5 May 2017, content was also updated for Switzerland to reflect the latest information there.  Please take this opportunity to re-run reports for those countries and use the latest information within your projects.

HMRC issues amended regulations and explanatory note to include CRS in its legislation, effective 17 May 2017

On 25 April 2017, Her Majesty’s Revenue and Customs (“HMRC”) on behalf of HM Treasury, issued The International Tax Compliance (Amended) Regulations 2017 and an Explanatory Memorandum to The International Tax Compliance (Amendment) Regulations 2017 (Link-Regulations 2017) (Link-Explanatory Memorandum) with the intention to bring the Common Reporting Standard into the scope of The International Tax Compliance Regulations 2015, which came into effect on 15 April 2015. These amended regulations come into force on 17 May 2017.

CRS enters into force in Poland on 1 May 2017

The Law on Exchange of Tax Information (Link-Polish) has been signed by the President of Poland on 20 March 2017 (“Law”). This Law implements i.a. the OECD Common Reporting Standard (“CRS”) in Poland. Due to a delay in implementation (CRS was planned to be in force starting from January 2016 in Poland), specific deadlines have been delayed and determined in 2017, including the following:

  • 31 July 2017 – deadline for identification of new clients who opened accounts in 2016;
  • 31 August 2017 – deadline for reporting (in subsequent years the reporting deadline shall be: 30 June of each year);

Denmark offers limited reprieve for those who missed the 1 May reporting deadline

The FATCA/CRS reporting deadline in Denmark was 1 May 2017.  The Danish tax authorities have given an indication that in some specific cases they will not be sending reminders to Reporting Financial Institutions within the next 14 days for failing to file a timely report, in order to allow time for any outstanding reports to be submitted. In case any specific technical difficulties or errors are encountered, FIs are encouraged to contact your local PwC team, PwC’s Danish team or the tax authorities.  It must be stressed that this is not a general extension of the reporting deadline by the tax authorities.

Guernsey proposes new pension supervisory framework for consultation

On 4 May 2017, the Guernsey Financial Services Commission announced (Link) that it was publishing a proposed new pensions supervisory framework for consultation as was communicated in its States report published on 27 April 2017 (Link) (Link to proposed rules).  Importantly, under this new supervisory mechanism, it may be possible for institutions previously unable to meet the criteria for certain exemptions to CRS, due to the lack of supervision, to do so.

Responses to the consultation should be made (using this Link) by 5 June 2017.

IRS provides guidance on collecting foreign TINs on Forms W-8

On 7 April 2017, the U.S. Internal Revenue Service (“IRS”) released a series of Frequently Asked Questions (“FAQs”) (Link-FAQs) (Link-previous blog coverage) to provide guidance on collecting foreign tax identification numbers (“TINs”) on beneficial owner withholding certificates (e.g., Forms W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), and W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)). The FAQs were issued in response to comments received from stakeholders on regulations issued in December 2016 (December 2016 Regulations) that imposed sudden and unexpected burdens on withholding agents regarding their obligation to collect foreign TINs on withholding certificates beginning 1 January 2017. The guidance issued in the FAQs provides immediate relief for some of the issues presented by the December 2016 Regulations. For more information, please see PwC’s Insight: Final and temporary Chapters 3 and 4 regulations contain several changes relating to identification and documentation of account holders and payees (Link).

Malaysia announces an extension to FATCA reporting to 30 June 2017

On 17 April 2017, the Inland Revenue Board of Malaysia (“IRBM”) announced (Link) that there will be an extension of time to submit 2014, 2015 and 2016 reportable information under FATCA until 30 June 2017. In addition, the date for submitting 2017 reportable information is schedule to be 30 June 2018.  The IGA between Malaysia and the US is still being finalized, which has resulted in this delay. Financial institutions should keep in mind that nil reports are required in Malaysia, using this template which has been provided by the Inland Revenue Board of Malaysia.