On 9 and 10 July 2019, PwC’s CITT Compare Tool was updated to include the latest content from the British Virgin Islands, Hong Kong, Lebanon, the United Arab Emirates and the United Kingdom. Please take this opportunity to re-run reports for those countries and use the latest information within your projects.
On 3 July 2019, the German Federal Central Tax Office (“Bundeszentralamt für Steuern” or “BZSt”) issued a newsletter: “FATCA Infobrief 03/2019”, providing updated information regarding the Foreign Account Tax Compliance Act (“FATCA”). The Infobrief (Link-German) includes information on:
- the mandatory submission of U.S. Tax Identification numbers or the date of birth
- the FATCA reporting deadline extension to 31 August 2019
- the BZSt website revision and
- a modified notification schema
On 9 July 2019, the Government of Mexico held an audio conference regarding the recent changes within the Foreign Account Tax Compliance Act (“FATCA”) and the Common Reporting Standard (“CRS”) (Link-Spanish). The schedule of the audio conference can be found on the Government’s website (Link-Spanish). Other recent changes, e.g. the calendar of Automatic Exchange of Information (“AEOI”) activities, which have been implemented in June 2019, are also available online (Link-Spanish).
On 10 July 2019, the Inland Revenue Authority of Singapore (“IRAS”) announced that, with effect from 1 April 2020, Reporting Singapore Financial Institutions must submit all Foreign Account Tax Compliance Act (“FATCA”) returns, including nil returns (if applicable), electronically to IRAS via the “Submit CRS or FATCA Return” e-Service at IRAS’ myTax Portal. Correspondingly, IRAS will no longer accept FATCA returns submitted via the International Data Exchange System (“IDES”). The requirement is applicable to all submissions of new, nil, amended, corrected or void FATCA returns, including returns relating to Reporting Years 2018 and earlier. These changes will streamline Reporting SGFIs’ FATCA reporting process (Link).
More information on the FATCA reporting requirements via the “Submit CRS or FATCA Return” e-Service will be released by end-September 2019.
In July 2019, the Australian Taxation Office (“ATO”) announced, that it intends to add two new validation rules to the Foreign Account Tax Compliance Act (“FATCA”) service. The updated code will be deployed to the EVTE environment, and published to the SBR website (Link) on 18 July 2019 and to the production environment on 30 July 2019.
As recently reported (Link-Blog), in June 2019, the Federal Board of Revenue (“FBR”) in Pakistan issued Notes on Finance Bill 2019 (Link). Clause 13(41)(H) seeks to introduce new penalties with respect to offshore tax evasion and failure to furnish information required under the Common Reporting Standard (“CRS”) and Chapter XIIA of Pakistan Income Tax Rules.
In this respect, Pakistan, on 30 June 2019, released the Finance Act 2019 (Link). On page 145 in clause 60A the definition of “specified jurisdiction under CRS” has been added. Newly added penalties can be found in the table starting on page 185.
For guidance and submission of reports, FBR AEOI Portal on the official website of FBR has been set-up (Link).
On 2 July 2019, the Taiwan Ministry of Finance published updated Frequently Asked Questions (“FAQ”) on the reporting under the Common Reporting Standard (“CRS”) to reflect the recent changes in the Taiwanese CRS implementation and due diligence process (Link-Chinese).
The recently published List of Reportable Jurisdictions under CRS, which can also be found on the Taiwanese website, contains two countries, Australia and Japan (Link-Chinese). For more information regarding the Automatic Exchange of Information in Taiwan, the Taiwan Ministry of Finance published Questions and Answers (“Q&A”) on the implementation of the CRS (Link-Chinese). Questions on what CRS is, how it works and how Taiwan will keep up with the CRS implementation are answered in downloadable files.
In addition, the Taiwan Ministry of Finance issued a press release including a list of low risk accounts that will be excluded from CRS reporting (Link-Chinese).
It is also possible to view the Taiwanese Automatic Exchange of Information documents in English. Please keep in mind that the English documents may not be as current as the Chinese documents. Should discrepancy due to translation occur, the Chinese version shall prevail (Link).
On 3 July 2019, the Dutch Government published a document answering Parliament’s questions about the effects of the Foreign Account Tax Compliance Act (“FATCA”). The questions and answers address the consequences of FATCA for US persons who are residents in the Netherlands (Link-Dutch). The document includes questions about the number of Dutch “Accidental Americans” and clarification regarding relevant sanctions.
On 3 July 2019, the Barbados Revenue Authority published a press release advising all Financial Institutions (“FIs”) based in Barbados that the Automatic Exchange of Information (“AEOI)” web portal is now available for their 2018 submissions (Link).
FIs are required to report the relevant 2018 AEOI information by 31 July 2019. These entities are reminded that if they operated for the full reporting year or part thereof, a submission must be made for that particular period.
Financial institutions are also asked to note that any request to have AEOI accounts deleted should be submitted in writing to the BRA on the company’s letterhead. In addition, all outstanding submissions must be completed before the deletion of an account.
On 1 July 2019, the Government of Lebanon issued Decision No. 457/1, which extends the Common Reporting Standard (“CRS”) deadline for the 2018 data reporting. The new deadline is 26 July 2019, instead of the initial deadline being 30 June 2019.