AEOI Updates: Feb. 4 – Feb. 22

Automatic Exchange of Information (AEOI) legislation is constantly evolving worldwide as the standard is rolled out around the world. The Sovos research team continually monitors new regulations and updates across the globe and publishes them in our Taxport Compass tool. Here are some important changes that occurred in recent weeks:

Ukraine Signs Model 1 IGA

Ukraine recently signed a Model 1B IGA with the United States to implement FATCA. The Treasury previously listed Ukraine as having an agreement “In-Substance” with the US. The IGA lists the Ministry of Finance as the Competent Authority. The two countries signed a Convention for the Avoidance of Double Taxation in 1994.

British Virgin Islands Releases Portal User Guide

The British Virgin Islands has updated its User Guide for BVIFARS, its AEOI reporting portal. The new guide contains updated information on FATCA returns that will be done in the IRS schema v.2.0 for this year’s reporting. Of note, the new user guide does not contain any information on CRS filing, but the guide indicates that it will be updated.

Luxembourg Releases CRS Schema Guide

Luxembourg released a schema guide as part of ECHA Circular No. 4. The guide provides instructions on how to properly format CRS returns in an XML format. Luxembourg has their own domestic schema which is used for CRS and FATCA reporting. Previously, Luxembourg released a FATCA guide. Both CRS and FATCA returns are due by the end of June.

Denmark Publishes AEOI-Related Reference Documentation

Denmark’s Competent Authority, SKAT, recently updated its guidance to FATCA reporting (version 2.7 of CF9.2.20.5). The guidance reviews the differences between definitions and categories included in the 2014 OECD Model Convention and FATCA. The second and third articles provide more general information on FATCA and its requirements. Denmark’s FATCA returns are due by May 1. This year, Danish FIs must use the IRS schema v.2.0 for their FATCA. SKAT is expected to release guidance soon concerning the schema requirements.

Nauru Posts CRS Regulations

Nauru published regulations for CRS, entitled “Automatic Exchange of Financial Account Information Regulations, 2017.” The regulations provide that Nauru will have a due date of May 31, and will require Nil reports. Nauru is a late adopter. FIs are expected to begin due diligence this year, and to report the following year.

South Korea Publishes AEOI Regulations

South Korea issued Implementation Rules for FATCA and CRS, providing guidance for the various AEOI requirements. Topics covered include due diligence, identification of reportable accounts, and documentation requirements. Of particular note, the due date for FATCA is now June 30, and not July 31 as is the case with the CRS due date.

France Releases New Version of CRS Guidance

France recently published version 1.1 of Transfert D’Informations En Application Des Deispositifs CRS-DAC2 Par Procede Informatique, which functions as their technical guidance for CRS reporting. Version 1.1 makes minor technical changes and includes new references to legal documentation previously left out of version 1.0. There is also a sample reporting format for second level reporting, which is based off the XML schema available on the OECD website. France’s tax website has also added a new page for AEOI where this guidance and other AEOI related materials can be found.