Over the past week, there have been changes to FATCA not only in the United States, but all around the globe. Check out our summary of the major updates to FATCA, CDOT, and CRS, straight from our very own tax and compliance research team in this week’s FATCA roundup below: Croatia Releases Update to Web Application User Manual Croatia has released an update to its Web Application User Manual. There are a few notable changes:
- An authorized official of a financial institution can now look at an overview of notifications regarding their submitted FATCA XML files
- By selecting the “Details” link on the screen to view submitted data, the user can see a detailed view for each item of the FATCA XML file
- Now when submitting FATCA XML files, the user will receive a notification when the FATCA XML file has not been submitted
Thailand signs IGA to Implement FATCA Reporting The Finance Minister of the Kingdom of Thailand signed an Intergovernmental Agreement (IGA) with the United States to implement FATCA reporting in Thailand. It had been previously agreed to in substance, and the signed IGA should be released by the IRS in the coming weeks. As of now, it is known that Thailand and the U.S. have agreed to a Model 1 IGA, but there is no guidance yet regarding whether it is reciprocal or non-reciprocal. Sweden Releases Updated Technical Guide for FATCA Submissions (SKV260) Sweden’s Ministry of Finance released an updated version of the technical guide for FATCA submission to tax authorities (SKV260). The guide contains a technical description of FATCA control tasks, and it has some significant updates from the prior version, including:
- Errors: Updated information on the correction of reports (Section 3.2)
- Reporting Financial Institutions: Information on TINs and GIINs (Section 6.2)
- Accountability Report – Payment: Details must be provided on dividends, interest, etc. (Section 6.6)
- DocRefID: Formal requirements for DocRefID – will begin with GIIN
- TIN Numbers: U.S. TIN numbers will always have nine digits
- Checklist for FATCA Submission (Section 7)
South Africa Releases Updated AEOI Specifications The South African Revenue Service released an updated and final draft of business requirements specifications for the Automatic Exchange of Information (AEOI). These specifications will be applicable for both FATCA and CRS compliance. Mexico Releases New Guidance Documents For Registering Mexico recently released new guidance documents for FATCA. The new guidance is for filing procedures for using SAT. As a reminder, financial institution must obtain a certificate by May 20 if they are submitting FATCA returns. Switzerland Makes FATCA Exception Clause for Accounts Held by Lawyers or Notaries Pursuant to an agreement executed between the competent authorities of Switzerland and the United States on February 29, 2016, accounts that are maintained by lawyers or notaries for the benefit of their clients will be excluded from the scope of FATCA reporting obligations. As such, Financial Institutions maintaining these accounts will not have to identify the clients of lawyers and notaries; however, the lawyers and notaries must confirm in writing which particular accounts fall within the exception. To read the press release further explaining this exception, please click here. Colombia Signs Competent Authority Arrangement with the United States Colombia has recently signed a Competent Authority Arrangement with the United States. The agreement’s purpose is to describe how Colombia will administer the FATCA reporting scheme, including the timing of the data exchange, and confidentiality agreements. The arrangement is contemplated in the IGA. OECD Releases Report on Global Forum on Transparency & Exchange of Information The OECD has released a report it has published for the G20 Finance Ministers on international tax co-operation. Part II of the report focuses on the development of the Automatic Exchange of Information. The report notes that around 90% of the early adopters have adopted the proper legal framework, compliance ratings will be completed in 2016 for members, and that 5 more countries have signed the multilateral Convention on the Mutual Administrative Assistance in Tax Matters, which brings the total to 94. Be sure to sign up for the Sovos Blog and monthly newsletter to receive these and other important updates regarding FATCA, CDOT, and CRS.
