On 21 August 2019, the Swedish Tax Agency released a Newsletter summarizing the latest Automatic Exchange of Information (“AEOI”) events in Sweden.
Regarding the Common Reporting Standard (“CRS”) the newsletter, which is only available in Swedish, reminds Financial Institutions of the following common reporting mistakes:
- Financial institutions which only reported residence in Sweden (ResCountryCode SE) are reminded, that Swedish residence should not normally be reported in accordance with CRS, except for undocumented accounts.
- A large number of incorrect foreign TINs and Swedish TINs, tagged as foreign, have been reported
- If the account is residence in Sweden should always be stated
- First name and last name are a mandatory task and must be reported separately
- Account holders with US residence have been reported in CRS reporting
- The number of undocumented accounts is significant for the Swedish Tax Agency examination of whether an institution fulfills its obligations
- There is a difference between what is mandatory by law and what is not mandatory according to the XML schema. The fact, that a reporting obligation is not mandatory by the XML schema does not mean that the task should not be included in the report.
Regarding the Foreign Account Tax Compliance Act (“FATCA”) the newsletter states that the Swedish Tax Agency complies with the U.S. Internal Revenue Service (“IRS”) approach for handling missing US TIN set out in the current IRS FATCA FAQ.
Changes in 2020 with regard to CRS and FATCA are:
- Relevant certificates must be obtained before a new account is opened
- The exception for accounts held by the estate shall be limited to and with the fourth calendar year after the calendar year when the death occurred
- Exemptions for escrow accounts are removed
Changes in 2020 with regard to CRS are:
- For undocumented accounts, a balance or value must be provided at the end of the year.
- Several exemptions from reporting obligation will be removed
In addition, information on lex Asea values will be issued at the end of January 2020, and a draft of technical descriptions for the 2019 income year is due in January.
Please note that the above information has been received through an email subscription. To receive the latest news regarding AEOI in Sweden, feel free to send a request to the following email address: email@example.com