On 8 July 2015, HM Revenue & Customers in the UK released a notification to for “Financial institutions, tax advisers and other professionals that may be aware of, or have given advice in respect of, an offshore account (Link). The general description of the measure is cited as follows:
On 3 June 2015, the Ministry of Finance of India released a statement on the signing of the Multilateral Competent Authority Agreement (“MCAA”) on Automatic Exchange of Financial Account Information (Link). India has signed as an “Early Adopter” with reporting beginning in 2017. Currently, there are 61 countries listed by the OECD as signatories to the MCAA (Link).
On 6 July 2015, the Department of Revenue of the Government of India released clarifications on tax compliance for undisclosed Foreign income and assets (Link) in the form of frequently asked questions. There are 32 questions and answers to help taxpayers and financial institutions understand their responsibilities under the Black Money and Imposition of Tax Act, 2015.
On 25 June 2015, the Brazilian Congress enacted Legislative Decree 146, approving the agreement with the United States (Link) concerning enforcement of the Foreign Account Tax Compliance Act (FATCA), which provides a basis for the exchange of account information from financial institutions between the United States and Brazil.
On 3 July 2015, the Brazilian Secretary of Federal Revenue issued Normative Instruction (NI) No. 1,571/2015 (Link – Portuguese), which requires filing of certain information of financial transactions. The NI enables the collection of relevant information required under the Intergovernmental Agreement (IGA) between Brazil and the U.S. Below we summarize some of the most relevant aspects included in the NI:
e-Financiera filing: This is the new electronic filing which FIs must file with the Federal Revenue Secretary including the relevant reportable information. For this purpose, FIs will have to upload the e-Financeira filing to the mandatory electronic bookkeeping and tax file (“ECD”, for its Portuguese acronym)—which was recently implemented.
Reporting FIs: The e-Financeira filing must be filed by:
Additionally, the NI also establishes who is responsible for providing relevant reportable information for the e-Financeira filing, such as fund administrators, custodial institutions, “consorcio” administrators, among others.
Reportable information: FIs are required to report, among other information, the balance of a depositary or investment account on the last business day of a reporting year; name, nationality, address, and tax residency of the accountholder(s). The reportable information increases gradually every year, and beginning on calendar year 2016 it will be extremely detailed and extensive.
Due date: In general, reportable information should be reported semi-annually:
However, in the case of reportable information for the calendar year 2015, the e-Financeira filing may be filed by the last business day of May 2016.
Attention: Exceptionally, for purposes of the IGA, the e-Financeira filing must be made by 15 August 2015 with respect to reportable information corresponding to the period July – December of calendar year 2014.
Penalties: Failure to file the e-Financeira by the due date or otherwise filing incorrect, inexact or incomplete information may result in penalties equal to (a) $5 thousand Brazilian Reais for month or fraction thereof in case of failure to file and (b) an amount of up to 3% of a relevant transaction or operation in case of filing incorrect, inexact or incomplete information. The penalties may be doubled where a notice of assessment is issued by the tax authority.
DIMOF filing: Beginning 1 January 2016, the financial transactions return (DIMOF, for its Portuguese acronym) will no longer be required to be filed.
On 1 July 2015, the Tax Information Authority of the Cayman Islands released Version 2.1 of the Guidance Notes (Link) under the Tax Information Authority (International Tax Compliance) (United Kingdom) Regulations, 2014 and the Tax Information Authority (International Tax Compliance) (United States) Regulations, 2014 by the Tax Information Authority as the Competent Authority for the purposes of the legislation.
On 30 March 2015, the Luxembourg parliament published the FATCA draft law (Link – French). The draft was amended as a results of the opinion of the National Commission for Data Protection. On 1 July 2015, the Luxembourg parliament adopted the FATCA Law and the State Council has granted a second vote waiver. Now that the FATCA law has been voted, we would expect the Luxembourg tax authorities to issue their guidance very soon.
On 26 June 2015, the German Ministry of Finance (“BMF”) released a draft circular on FATCA implementation guidance (Link – German). The BMF requests feedback on the draft circular from the market by until 17 July 2015.
On 31 May 2013, the Federal Republic of Germany and the United States of America entered into an intergovernmental agreement (German-US IGA) to improve International Tax Compliance and with respect to the United States Information and Reporting Provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). This agreement regulates the automatic exchange of the tax related information, which should be obtained from Financial Institutions (FIs), in an effort to increase international tax compliance. Pursuant to § 117c of the German Fiscal Code (Abgabenordnung – AO), the BMF enacted the German-US FATCA implementation regulation (FATCA-USA-UmsV dated 23 July 2014 (BGBl. I S. 1222)).
Some initial observations from the perspective of (i) Scope and Governance; (ii) Customer Due Diligence and Documentation; (iii) Reporting; and (iv) Withholding are below:
i. Scope and Governance:
ii. Customer Due Diligence and Documentation
Several new details are given and illustrated by examples with regard to Customer Due Diligence and Documentation:
The draft BMF-Circular confirms reporting dates and relevant reporting data. Additional details provided include:
The draft BMF-Circular does not further comment on withholding obligations in Germany.
Am 26. Juni 2015, hat das Bundesministerium der Finanzen (“BMF”) einen Entwurf des BMF-Schreibens bzgl. Anwendungsfragen im Zusammenhang mit dem German-US IGA veröffentlicht (Link). Über die verschiedenen Verbände bittet das BMF um schriftliche Stellungnahme bis zum 17. Juli 2015.
Am 31. Mai 2013 haben Deutschland und die Vereinigten Staaten von Amerika das Abkommen zur Förderung von Steuerehrlichkeit bei internationalen Sachverhalten und hinsichtlich der als Gesetz über die Steuerehrlichkeit bezüglich Auslandskonten bekannten US-amerikanischen Informations- und Meldebestimmungen (German-US IGA) geschlossen. Dieses Abkommen regelt den automatischen Austausch steuerlich relevanter Daten, die von Finanzinstituten (FIs) erhoben werden, um die Steuerehrlichkeit auch in internationalen Sachverhalten zu erhöhen. Auf Grundlage des § 117c der Abgabenordnung (AO) hat das Bundesministerium der Finanzen mit Zustimmung des Bundesrates die Verordnung zur Umsetzung der Verpflichtungen aus dem FATCA – Abkommen (FATCA-USA-UmsV vom 23. Juli 2014 (BGBl. I S. 1222)) erlassen.
Einige erste neue Aspekte in Bezug auf (i) Anwendungsbereich und Governance; (ii) Sorgfaltspflichten und Dokumentation; (iii) Meldewesen; und (iv) Steuerabzug werden im folgenden beleuchtet:
i. Anwendungsbereich und Governance:
ii. Sorgfaltspflichten und Dokumentation
Verschiedene neue Details zu Sorgfaltspflichten und Dokumentationen wurden im Entwurf zum BMF-Schreiben adressiert und durch Beispiele illustriert. Hierbei sind u.a. die folgenden Punkte hervorzuheben:
Der Entwurf des BMF Schreibens bestätigt die relevanten Meldezeitpunkte und die zu meldenden Daten. Zusätzliche Details werden zu den folgenden Themen gegeben:
Der Entwurf zum BMF-Schreiben kommentiert nicht die FATCA-Steuerabzugsverpflichtungen in Deutschland.
On 26 June 2015, the German Ministry of Finance (“BMF”) released a draft circular regarding FATCA implementation guidance (Link – German). The BMF requests feedback on the draft circular from the market by 17 July 2015. Initial observations from the perspective of (1) Scope and Governance; (2) Customer Due Diligence and Documentation; (3) Reporting; and, (4) Withholding are below:
Scope and Governance
Customer Due Diligence