Declaration Form

Does your bank require you to sign the Declaration Form? What is it?

Learn everything you need to know about the Declaration Form

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The Declaration Form is a form that banks require from bank customers asking for explanations about their tax residence, that is, where they pay their income taxes, and then share this report with the corresponding Treasury.
Banks are asking to fill out this form to help protect the integrity of tax systems, so governments around the world are introducing this new information gathering and reporting system from financial institutions. This is known as CRS or Common Reporting Standard.

For CRS to be implemented at the local level, governments have to subscribe to the Multilateral Competent Authority Agreement (CACM) on Automatic Information Exchange.

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SIf you have any questions about this form or about your tax residence and Income Tax, please contact us. From Foster Swiss, as an independent and international private banking consultancy, we can give you tax advice.





    Documentation

    Countries subscribed to the CACM and that will ask to fill in the Declaration Form

    Documentation

    What is the Declaration Form?

    What is the Declaration Form?

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    Following the CRS, you are required to determine where you are a tax or tax resident, that is, where you are required to pay income taxes. If you are a tax resident of Spain, for example, you will have to provide this information on the form together with the information of your bank accounts. This report can be shared between the different tax authorities of the countries.

    By completing this form, you will ensure that your bank has accurate and up-to-date information about your tax residence. If your circumstances change and any of the information provided on this form is incorrect, you must notify your bank immediately by providing a new, updated form.

    What information should you fill in the Declaration Form?

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    first part: Identification of the individual account holder. Here you must provide the following information: name of the holder, current residence address, postal address, date and place of birth and national identity document number.

    Second part: Country of residence for tax purposes and Taxpayer Identification Number or equivalent to the TIN. You will need to complete a table indicating where the account holder and TIN are a tax resident.

    Third part: Declarations and signature. This is the final part of the form, in which you are informed that you are fully aware of the documentation provided and the terms and conditions of your bank in relation to the Declaration Form, which establishes how the bank can use and share the information provided by you to the tax authorities where you have accounts.

    Who must complete the Form?

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    Those who are clients of private banking and / or individual entrepreneurs or merchants must complete the Declaration Form. If you need to certify on behalf of an entity, which includes businesses, trusts and partnerships, you must complete the section "Entity Self-certification Form (CRS-E)". Likewise, if you are the controlling person of a non-financial passive entity or investment entity managed by another financial institution, you must complete the β€œControlling Person Self-Certification Form (CRS-CP).

    For common account holders, each individual person will have to complete a copy of the form. Even if information has already been provided in connection with the United States Government Foreign Account Tax Compliance Act (FATCA), you may need to provide additional information for the CRS as this is a separate requirement under local regulation .

    If you are completing this form on behalf of someone else, be sure to inform them that you have done so and complete if you are completing this form as a custodian, account nominee, attorney, or legal guardian on behalf of an account holder who is a minor .

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    Main concepts of the document

    Account holder

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    e refers to the person who appears or is identified as the holder of an account by the bank that maintains the account. A person who owns an account for the benefit of another person, such as an agent, custodian, nominee, signatory, investment advisor, broker, or legal guardian is not treated as the account holder. In the case of a joint account, each joint owner is treated as an account holder.

    Entity

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    he term entity means a legal person or legal agreement, such as a corporation, organization, association, trust or foundation.

    Controlling person

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    s a natural person who exercises control over an entity and includes a beneficial owner. In the case of a trust, the controlling person means the settlor, the trustees, the protector (if any), the beneficiaries or the class of beneficiaries, and any other natural person who exercises ultimate effective control over the trust, and in in the case of a legal arrangement other than a trust, the person in an equivalent or similar position.

    Financial account

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    A financial account is an account maintained by a financial institution and includes: deposit accounts, custodian accounts, participation and debt in certain investment entities, cash value insurance contracts and annuity contracts.

    Reportable account

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    A reportable account means an account maintained by one or more reportable persons or by a passive non-financial entity with one or more controlling persons that is a reportable person.

    Reportable jurisdiction

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    s a jurisdiction with which there is an obligation to provide financial account information.

    TIN number

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    e is the taxpayer identification number assigned to a person in the country or territory in which he is a tax resident and includes a functional equivalent in the event that said number is not assigned. A TIN is a unique combination of letters or numbers assigned by a jurisdiction to an individual or Entity and used to identify the individual or Entity for the purposes of administering the tax laws of that jurisdiction. Some jurisdictions do not issue a TIN. They use another high integrity number with an equivalent level of identification, such as a social security number, resident registration number, among others.

    Information is power

    SIf you want to know more about the main tax havens in the world, feel free to visit The daily offshore news, our news portal related to the latest news on tax havens.
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