On 22 December 2015, PwC released an update on the transposition of the German CRS implementing law [Gesetz zum automatischen Austausch von Informationen über Finanzkonten in Steuersachen – FKAustG] (Link – German) and that the upper house of the German parliament approved the CRS implementing law without any changes to the draft version previously adopted by German Federal Parliament on 12 November 2015 (previous newsalert).
Most recently, the CRS implementing law was promulgated into the Federal Law Gazette on 30 December 2015 (Link). According to Article 8, the law entered into force on the day after its promulgation, i.e. on 31 December 2015.
On 31 December 2015, the CRS decree (Link – Greek) was published in the Cyprus Gazette with an effective date of 1 January 2016. In addition, a number of other useful links can be found on the CRS homepage of the Tax Department of Cyprus, including:
On 30 December 2015, the Portuguese Secretary for Tax Affairs released a note (Link – Portuguese) to Portuguese FFIs notifying them that the deadline for initial reports to be submitted to the Secretary has been extended to 31 March 2016. This is the third such delay with the previous extensions being from the original deadline of 31 July 2015 to 30 November and then to 31 December. The note also highlights the fact that the IGA with the United States (Link) although signed on 6 August 2015, has not yet been approved and ratified which is why local guidance and regulations have not yet been released.
On 22 December 2015, the Mauritius Revenue Authority released a Communique on the implementation of CRS (Link). The Communique states that “the effective date for the implementation of CRS, initially set for 1st January 2016, has been deferred”. In addition, it is stated that the Ministry of Finance of Mauritius has informed the OECD accordingly and that stakeholders swill be informed of further developments.
On 31 December 2015, the Government of India released the updated Guidance Note on Implementation of Reporting Requirements Under Rules 114F to 114H of the Income-Tax Rules, 1962 (Link). The Guidance Note is intended to provide support to Indian Financial Institutions and regulators in the implementation FATCA and CRS to ensure compliance with, inter alia, reporting and documentation requirements.
For more information on this topic, see PwC India’s Tax Insights
On 31 December 2015, the Belgian Automatic Exchange of Information Act was published in the Belgian official gazette (Link – French and Dutch). The Act should enter into force 10 days after its publication with respect to the United States and EU Member States.
According to the Act, reporting Belgian FIs must submit their first FATCA reports (covering the period between 1 July to 31 December 2014) to the Belgian Public Federal Service Finance (“SPF Finance”) within 10 days from the publication of the Act. In this respect, the SPF Finance has announced that the 10 days period will be applied in a flexible manner (Link) and that in practice a period of one month from the publication date into the Belgian official gazette will be tolerated for the submission of the FATCA reports. Additional information is also available on the SPF Finance FATCA website.
Previous Tax News from PwC Belgium:
FATCA & CRS – Belgian bill – Flexible application of 10 days deadline
FATCA & CRS – Belgian bill adopted
The Inland Revenue service of Malta has updated its website (Link) to include links to Guidelines for the Implementation of the EU Council Directive 2014/107/EU and the Common Reporting Standard (Link). The DAC 2 and CRS have been implemented into Maltese legislation through LN 384 of 2015, or Cooperation with Other Jurisdiction on Tax Matters (Amendment) Regulations, 2015 (Link), which amend the Cooperation with Other Jurisdiction on Tax Matters Regulations with effect from 1 January 2016.
On 23 November 2015, Guernsey issued Regulations implementing the Common Reporting Standard (“CRS”) into domestic law with an effective date of 1 December 2015 (Link). Accordingly, on 24 December 2015, Guernsey released Draft Guidance Notes (Link) to support Guernsey Financial Institutions in the implementation of the Common Reporting Standard.
On 24 December 2015, the Internal Revenue Service (“IRS”) issued final Instructions for the Form 8966 (Link) “FATCA Report” which is to be used for reporting under the Foreign Account Tax Compliance Act (“FATCA”) in 2015.
In December 2015, the U.S. signed a Competent Authority Arrangements (“CAAs”) with Belgium (Link), Finland (Link) and the Netherlands (Link), in accordance with the IGAs previously signed with these jurisdictions. In general, a Competent Authority Arrangement is a bilateral agreement between the U.S. and a treaty partner to clarify or interpret treaty provisions (Link). CAAs establish the procedures for the automatic exchange obligations and for the exchange of information between U.S. and the partner jurisdictions.