This information is intended to help you understand Automatic Exchange of Information (AEI) regime concerning the automatic exchange of financial account information with foreign jurisdictions.
This regime is known as the Common Reporting Standard (CRS). CRS contains the common due diligence procedures on how tax-related information is exchanged between financial institutions in certain countries. It sets out the rules and the reporting for automatic exchange of financial information.
Those regulations require all financial institutions operating and licensed in participating in the AEI countries, including Intercard Finance AD, to report automatically clients and account information to the tax authorities.
Beginning on January 1, 2017, the Automatic Exchange of Information (AEI) will be implemented in Europe, with a first submission of information by April 2017 and first exchange of data between the tax authorities of all EEA participating countries in September, 2017. All EEA countries will apply the AEI from 2017, while some countries, like Switzerland, Austria and others will make the first exchange in 2018. To see this list of more than 100 participating countries and their first exchange of tax information, please check https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/crs-by-jurisdiction/#d.en.345489
In the wake of the financial crisis, the G20 had an increased interest in establishing a global standard, which in September 2013 led to a formal request to the Organization of Economic Cooperation and Development (OECD) to develop a common reporting standard as part of the global effort to combat tax evasion. Under this standard, participating countries commit to the bilateral exchange of information relating to the financial accounts, including bank accounts, e-money accounts and current accounts, of individuals and entities that hold assets in a country outside their tax residency on the basis of bilateral or multilateral agreements. The EU accepted the Council Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation. The Directive extended the cooperation between EU tax authorities to automatic exchange of financial account information and effectively incorporated the Standard for Automatic Exchange of Financial Information in Tax Matters (Common Reporting Standard). Those regulations require all EEA financial institutions, including Intercard Finance AD, to carry out due diligence procedures and to report automatically clients and account information to the tax authorities.
For "reportable accounts" of Intercard Finance AD – the accounts of individuals or entities that are tax residents of a Participating Jurisdiction other than Bulgaria, the following information will be automatically reported: identifying information (e.g. name, taxpayer identification number, date of birth, tax residency), as well as financial account information (e.g. account number, account balance as of the end of the previous year, gross earnings). The term “reportable account” means an account held by one or more reportable persons (meaning individuals or entities) or held by a passive non-financial entity with one or more controlling persons that are reportable persons, provided they have been identified as such pursuant to the due diligence procedures. All EU and EEA financial institutions are required to report the above information to their local tax authorities on an annual basis for all clients who qualify as reportable persons. The local tax authorities will then exchange the information with the tax authorities of the client’s jurisdiction of residence for tax purposes. To determine the status of a reportable account we may request documents from you or send you a declaration to fill. Please be assured that client confidentiality remains key and that all data will be exchanged using secure processes and procedures, and will only be used for tax purposes.
At Intercard Finance AD we will make every effort to implement the AEI in a way that is as customer friendly and transparent as possible. We hereby inform you that the first reporting is scheduled for April 2017 for the accounts balances as of 31st of December 2016.
CRS (Common Reporting Standard) contains the common due diligence procedures on how tax-related information is exchanged between financial institutions in certain countries. It sets out the rules and the reporting for automatic exchange of financial information.
The European Union has adopted CRS on January 1, 2016 by applying specific amendments on the directive for administrative cooperation in the field of taxation. First reporting will be executed in 2017.
Not all countries have adopted the CRS, but we expect them to do so in the near future. In this regard, INTERCARD FINANCE AD can review the circumstances around account holders or legal entities who are yet not in CRS jurisdiction.
The measures and the rules set out in CRS apply to any private individual or legal entity, residing in any participating CRS jurisdiction. However, it is mostly applicable to accounts of foreign tax residents.
CRS is applicable to our clients, who are tax resident of a country different from Bulgaria, such as all EEA countries and others, which start the exchange of tax information.
To implement CRS INTERCARD FINANCE AD should:
Identify account holders (new and existing) who are likely to be residents for tax purposes in another country
For individual customers, the criteria are as follows:
- Being a resident of another country
- Physical or mailing address in another country (post office box and care of address (c/o) included)
- One or more telephone numbers in another country and no phone number in the country of residence of the reporting
- Power of attorney or signatory authority granted to a person with a physical or mailing address (including post office or c/o address) in another country
For legal entities, the criteria include the following:
- The country of incorporation or residence is another country
- Current physical or mailing address (including post office box or c/o address) in another country
Report information to the local tax authorities
The details that we are required to provide are related to:
- The account holder identity
- The account number
- The year-end account balance
- The income (interest, dividends, gross proceeds, etc.)
Intercard Finance as a financial institution collects and processes personal information in regard to the financial accounts of its clients and according to the FATCA agreements and CRS. This information could be reported to the financial institution of the National Revenue Agency in Bulgaria.
Intercard Finance could exchange information with the tax authorities in the jurisdictions participating in the automatic exchange of financial information with tax purposes.
- Frequently Asked Questions (PDF).
- See the CRS page on the OECD website.
Where can you find your Tax Identification Number (TIN)?
(site of the OECD)
Where can you check your Tax Identification Number (TIN)?
(site of the European Communion)