Weekly FATCA Round-up: May 28-June 3, 2016

June 3, 2016

Another week has come and gone, here is your weekly FATCA round-up, including important changes made by the IRS. Peruse these updates, another Jersey CDOT set of changes as well as a CRS implementation compiled by our stellar research team.


IRS Has Released a Draft Version of the FATCA XML v2.0 and Will Update FATCA IDES Data Preparation Process

The IRS has published a draft version of FATCA XML v2.0, which is the reporting schema intended for use in calendar year 2017. As of now, there is no updated guidance to accompany this schema.

The IRS will also be making changes to the IDES data preparation process for FATCA filing in order to improve security. The formal cipher conversion from Electronic Code Book (ECB) to Cipher Block Chaining (CBC) will begin on July 8, 2016 at 11:59 p.m. EST, at which point the last submissions in EBC mode may be made before it goes offline for two days. On July 11, 2016 at 12:01 a.m. EST, it will reopen for encrypted submissions in CBC mode. Samples of the data packaging codes are available for users on GitHub.

IDES will open for testing of the CBC cipher mode from June 16-30, 2016.


IRS Lists St. Kitts & Nevis with In Force Status

The IRS recently changed St. Kitts & Nevis’s FATCA status to an “In Force” status.  Previously, its status was “signed”.  “In Force” means that the countries have passed and approved legislation and that the FATCA agreement is active.

To view the updated IRS FATCA List, please click here.


Portugal Signs Competent Authority Arrangement

Portugal has published its Competent Authority Arrangement with the United States. The Arrangement’s purpose is to describe how each country’s tax authority will administer the FATCA reporting scheme, including the timing of the data exchange, and confidentiality agreements.


India Releases Clarifications on the Implementation of FATCA and CRS

In response to consultations held with participating Financial Institutions (FIs), the Department of Revenue – Central Board of Direct Taxes released a few notes to assist in the clarification and expediency of certain critical issues surrounding implementing FATCA and CRS.

  • Obtaining Self-Certification: Due to a large number of financial accounts, representatives of FIs found it practically very difficult to physically obtain self-certification from account holders. As a remedy, self-certification can also be obtained through “Internet Banking platform from the user account where the customer has transaction rights”.
  • Tax Identification Number (TIN): Clarification regarding a FIs collection of TIN as follows.
    • FIs are not required to collect TIN (including its functional equivalent) if it is not issued by the relevant country or territory outside India in which the person is a resident for tax purposes.
    • Furthermore, FIs are not required to collect TIN information from people (residents for tax purposes in a country or territory outside India) who may be eligible to obtain a TIN (or the functional equivalent) in their country or territory of residence, but have not yet obtained a TIN. However, FIs may make a note of this and seek TIN information from the person after he obtains the same.
  • Account Balance/Value: Regarding the valuation of custodial accounts maintained by Depository/Depository Participant/Brokers which contain various securities, India has decided that valuation may be done at the values regularly communicated by Depository (CDSL/NSDL) to the depository participants/brokers.
  • Procedure for Furnishing the Report: This section references two separate documents which relate to the registration and submission of documents under FATCA and CRS.
    • To review the procedure for registration and submission of reports under FATCA and CRS, India instructs users to review Notification No. 4 (04/06/16), which is available at www.incometaxindia.gov.in.
    • India also released a User Manual for the Registration, Upload, and View of Form 61, 61B, and Form 15CC. That document can be found here.

Here are the full notes.


India Releases User Manual for the Registration, Upload, and View of Form 61, Form 61B, and Form 15CC (Version 2.0)

India recently published Version 2.0 of their User Manual for the Registration, Upload, and View of Form 61, Form 61B, and Form 15CC. This most recent version includes a new section on uploading Nil Statements to India’s e-Filing portal using ITDREIN, Authorized Person PAN, and a password.


Jersey Issues Updated Guidance Notes for FATCA and CDOT (June 2016)

Jersey has released newly updated guidance for FATCA and CDOT reporting dated June 2016. This update maintains the changes from the previous version of the document from May 2016, and contains a number of new revisions. While most of these are spelling and formatting corrections, there are three separate sections in which dates have been changed.

  • Section 15.13.1, Lower Value Accounts (p. 135):
    • “The review of pre-existing individual accounts that are Lower Value Accounts at 30 June 2014 must be completed by 31 December 2016.”
  • Section 17.2, Reportable Accounts (p. 142):
    • “Where a Pre-existing Entity Account closes prior to the Financial Institution carrying out its due diligence procedures, then the account is still required to be reviewed. Where following the due diligence procedures the account is found to be reportable, the Financial Institution must report the information as required under Section 19.2.7 and in accordance with the requirements under Section 17.10. This should only apply to accounts that exist at 30 June 2014 and close before 31 December 2016 as all accounts should have been reviewed by that date. This will not apply to accounts that are closed prior to 30 June 2014.”
  • Section 17.10, Timing of Reviews (p. 145):
    • “The review of pre-existing entity accounts with an account balance or value that exceeds $250,000 at 30 June 2014 must be completed by 31 December 2016.”

In all three sections, the previously listed date was June 30, 2016.


Slovenia Releases Third Edition of FATCA Reporting Information Guidance; Changes FATCA Due Date

Slovenia recently released a third edition of FATCA Reporting Information, Financial Reporting of Financial Institutions.  This guide details which accounts to report, what information to report, and the coverage of reporting.

The updated guide contains a FATCA due date change.   FATCA files are now due to PARS by June 30.  Previously, the date was May 31.


British Virgin Islands Extends FATCA Reporting Deadline to June 17, 2016

The International Tax Authority of the British Virgin Islands has announced an official extension of the statutory deadline for US FATCA filing to June 17, 2016. The deadline was originally set for May 31, but the government is allowing all Financial Institutions that missed the deadline to submit their returns before June 17.

Please read the full press release here.


Bahamas Updates Webpage with Current Registration and Reporting Deadlines

The Bahamas has updated its FATCA information page with information concerning registration and reporting time frames and deadlines for calendar year 2016. The portal will open on July 7, 2016 for both registration and reporting, and it will close on August 19, 2016 at 5:00pm EST.


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