This blog was last updated on June 27, 2021
The Icelandic Directorate of Internal Revenue has released information about its domestic schema to be used for both FATCA and CRS reporting. There is a new section in the schema, <FatcaCrs í framtalsgögnum> (FATCA CRS tax return data), which is meant to allow for either FATCA or CRS data to be reported. Additionally, there is another new section, <Vidskiptastofnun>, which includes the Type of Sender (Filer Category). A description of this section may be found here.
The Icelandic legislature has enacted a FATCA Resolution and CRS Resolution, both containing legal guidance for financial institutions reporting for Tax Year 2016. The due date for both reporting regimes is May 31, 2017. Each resolution outlines the content of the information to be reported by Icelandic Financial Institutions according to the due diligence measures in the agreements. The resolutions also provide instructions for passive or inactive non-financial entities (NFEs) and due diligence protocols for preexisting accounts.
Under both FATCA and CRS, financial institutions are required to submit Nil Reports in order to inform the Directorate that they have no reportable
accounts.