Mexico updates AEOI information documents

On 15 January 2020, the Mexican Tax Authority (“Servicio de Administración Tributaria or SAT”) released an updated calendar of Automatic Exchange of Information (“AEOI”) activities for 2020, including several important deadlines (Link-Spanish).

In addition, on 8 January 2020, the Mexican List of Reportable Jurisdictions (Link-Spanish) and the List of Participating Jurisdictions (Link-Spanish) were updated.

Further documents, which have been updated on 14 and 17 January 2020, respectively include:

  • Guide with technical information for data transmission for the Common Reporting Standard (“CRS”) (Link-Spanish)
  • General AEOI communication guideline (Link-Spanish)
  • CRS Reporting User Guide (Link-Spanish)
  • Official CRS Rules “Anexo 25-Bis de la Resolución Miscelánea Fiscal para 2020” (Link-Spanish)
  • Official Foreign Account Tax Compliance Act (“FATCA”) Rules “Anexo 25 de la Resolución Miscelánea Fiscal para 2020” (Link-Spanish)

Information on the 2020 tax reform in Mexico was reprocessed by PwC Mexico (Link-Spanish).

Malaysia updates FATCA Reporting Information

On 7 January 2020, the Inland Revenue Board of Malaysia (“IRBM”) updated the Foreign Account Tax Compliance Act (“FATCA”) webpage to include information on the related reporting deadline (Link).

Under the terms of the Malaysia-US IGA (“Agreement”), Reporting Malaysia Financial Institutions (“MYFIs”) will provide Inland Revenue Board of Malaysia (IRBM) with the required account information of US persons. IRBM will then exchange that information with the US IRS.

The IGA is, however, still in the process of finalization. The US Treasury, through their letter dated 25th April 2017, has agreed that Malaysia remains on the Treasury IGA list and continues to be treated as if it has an IGA in effect.

The date for submitting the 2014, 2015, 2016, 2017, 2018, 2019 and 2020 reportable information and NIL Returns under FATCA to IRBM has been tentatively deferred to 30 June 2021.

For queries related to the site and/or information on the reporting obligations in Malaysia, the public is invited to submit emails to fatca@hasil.gov.my.

IRS updates 2019 Instructions for Form 1042-S

On 9 January 2020, U.S. Internal Revenue Service (“IRS”) updated the 2019 Instructions for Form 1042-S (Link).

Form 1042-S is used to report:

  • Income and amounts withheld as described in the Instructions for Form 1042-S.
  • Specified Federal procurement payments paid to foreign persons that are subject to withholding under section 5000C.
  • Distributions of effectively connected income by a publicly traded partnership or nominee.

The form was updated to include the changes resulting from proposed regulations (83 FR 64757) to reduce taxpayer burden with respect to certain requirements under Chapters 3 and 4 of the Code (Foreign Account Tax Compliance Act (“FATCA”)). For 2019, a withholding agent may rely on the described provisions of these proposed regulations in connection with completing Form 1042-S (Link).

CITT Compare Tool Update: Data updated for Austria, Canada, Colombia, France, Germany, Hungary, Indonesia, Luxembourg, Malaysia, Mongolia, the Netherlands, the Philippines, Portugal, Russia, South Africa, Singapore, Spain, Switzerland, Taiwan and Tunisia

On 15 and 16 January 2020, PwC’s CITT Compare Tool was updated to include the latest content from 20 countries. The countries are: Austria, Canada, Colombia, France, Germany, Hungary, Indonesia, Luxembourg, Malaysia, Mongolia, the Netherlands, the Philippines, Portugal, Russia, South Africa, Singapore, Spain, Switzerland, Taiwan and Tunisia. Please take this opportunity to re-run reports for those countries and use the latest information within your projects.

Malaysia updates Reportable Jurisdiction List and issues reporting deadline

On 15 January 2020, the Inland Revenue Board of Malaysia (“IRBM”) updated the List of Reportable Jurisdictions under the Common Reporting Standard (“CRS”) (Link). The new list includes 67 countries.

Malaysian Financial Institutions (“MYFI”) are required to collect financial account information from all non-residents and report to IRBM that information relating to the Reportable Jurisdictions according to the timeline as stated on the CRS information webpage (Link).

To ensure that MYFIs are ready to submit the information relating to the reportable jurisdictions within the timeline, MYFIs are advised to prepare the report of all participating jurisdictions and not only the reportable jurisdictions. The initial List of Reportable Jurisdictions was published on 15 January 2018. For 2020 reporting onwards, the list will be updated again on 31 May 2020.

In addition, on 16 January 2020, the Inland Revenue Board of Malaysia (“IRBM”) announced the Common Reporting Standard (“CRS”) reporting deadline for the reporting year 2019 (Link). The deadline for submitting the CRS Report is 1 March 2020 to 30 June 2020. IRBM states that there will be no further extension.

The registration portal is open (Link). FIs registering after the submission deadline will be

considered to have registered late and, upon submission of their reports, will be subject to a penalty.

Japan releases updated FAQ on CRS

In December 2019, Japan updated the Foreign Account Tax Compliance Act (“FATCA”) and Common Reporting Standard (“CRS”) Frequently Asked Questions (“FAQ”) regarding the Reporting System for Automatic Exchanges of Financial Account Information on Non-residents (Link-Japanese). The document provides Japanese Financial Institutions with the technical description and specification for filing CRS returns. The updated FAQs contain the following additional questions:

Q1 – 1-11;

Q2 – 13;

Q3 – 7.

Amendments have been made to the following questions:

Q1 – 2-1;

Q2 – 14;

Q3 – 2.

In addition, also in December 2019, the Japanese Reporting FAQ have been updated (Link-Japanese) including the following changes:

Q1 – 1-11;

Q2 – 13;

Q3 – 4.

Amendments have been made to the following questions:

Q1 – 2-1;

Q2 – 14;

Q3 – 2.

Hungary releases updated CRS and FATCA documents

On 2 January 2020, the Hungarian Parliament published an updated version of the filing guidance for the Common Reporting Standard (“CRS”) reporting (Link-Hungarian). The 2019 filing instructions include the list of reportable jurisdictions.

In addition, the documents for the 2019 Foreign Account Tax Compliance Act (“FATCA”) filing have also been made available on 1 January 2020 (Link-Hungarian).

Cayman Islands releases AEOI News & Updates

On 9 January 2020, the Cayman Islands’ Department for International Tax Cooperation (“DITC”) released an updated version of the Automatic Exchange of Information (“AEOI”) News & Updates circular: “AEOI News & Updates” to reflect recent changes regarding the AEOI (Link).

DITC is developing a new Automatic Exchange of Information Portal for notification and reporting purposes, which is set to launch in two phases over the first and second quarters of 2020.

The new Portal will include additional features such as bulk upload options for reporting and User changes, a centralized overview of all assigned FIs and downloadable reports to assist with monitoring

the annual reporting progress for Foreign Account Tax Compliance Act (“FATCA”) and Common Reporting Standard (“CRS”).

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