LFinancial institutions may consider requesting client information from their account holders. Financial institutions should consult their advisors to ensure that their CRS-related operations, including self-certification forms collected from account holders, comply with all applicable national laws. BIAC is an independent international business association dedicated to giving OECD business perspectives on a wide range of global policy issues.
One of these forms is the one that we are going to discuss below (Entity tax residency self-certification form): the one that refers to the accounts that are owned by any type of entity (companies, trusts, sicavs, investment funds ...)
The purpose of this form is to enable your offshore bank to comply with the legal obligations of the Automatic Tax Information Exchange (IAI). Many entities are bound by this multilateral agreement signed by more than a hundred countries. In addition, each jurisdiction will have adapted the Common Reporting Standard (CRS), procedure for reporting information between countries, to different national laws.
For this reason, the banking entities of the signatory countries are required to request certain information on the tax status of the holder of a bank account, in order to, if necessary, transmit this information to the tax authorities of the country where they are located.
You are obliged to declare your residence (or residences) for tax purposes of the Account Holder Entity Who is this figure? Neither more nor less than that natural or legal person who is the owner of the entity that receives the income or assets associated with said account.
To help protect the integrity of tax systems, governments around the world are introducing a new requirement that requires financial institutions to collect certain information. This is due to the implementation of the Common Reporting Standard (the CRS).
Under the CRS, your bank is required to determine where an entity (partnership, trust) is 'tax resident' (that is, where you are required to pay income taxes). If you have a tax residence outside the country where you have your account, the bank may have to provide the tax authorities with this information, along with information related to your accounts. In this way, these data can be shared between the tax authorities of the different countries. By filling in this form, the bank ensures that it maintains accurate and up-to-date information on the tax residence of its clients.
If your circumstances change and any information provided in this form is incorrect, you must notify your entity again so that it can update the data.
Commercial banking customers (which includes all businesses, trusts, and partnerships, except the self-employed). On the contrary, if you are a natural person or a self-employed worker, you must fill out the 'Individual Tax Residency Self-Certification Form' (CRS-I). Also, if you are a person who controls an entity, you must fill out 'Controlling Person Tax Residency Self-Certification Form (CRS-CP). For joint account holders, a copy of the form must be completed for each account holder.
Even if you have already provided information regarding the United States Government Foreign Account Tax Compliance Act (FATCA), you may need to provide additional information for the CRS as it is a separate regulation.
In addition, you must indicate in Part 4 of the form as to what condition you are signing the document. For example, you may be the authorized representative of a corporation or a trustee.
If you have any questions about how to complete this form or how to determine the status of your tax residence, please contact trusted tax advisers such as Foster Swiss. Most offshore banks will not be in a position to provide more information than the form provides within the attached instructions.
In the case of accounts with multiple owner entities, each owner must fill out a form. In addition, if the information provided to the offshore bank changes for any circumstance, this updated form must be presented to the bank again within 30 days, although it may vary depending on the entity.
or “account holder” means the person registered or identified as the holder of a financial account by the financial institution that maintains the account. Persons other than a financial institution who are holders of a financial account for the benefit or on behalf of another person as a representative, custodian, designated agent, signatory, investment advisor, or as an intermediary, shall not be considered holders of the account the effects of the FATCA and CRS regulations, consideration that such other person will have. In the case of an insurance contract with cash value or an annuity contract, the account holder is any person with the right to dispose of the cash value or to modify the beneficiary of the contract. In the event that no person can dispose of the cash value or modify the beneficiary of the contract, the account holder is any person designated as the owner in the contract and any person with an acquired right to receive payments under the contract. Upon expiration of a cash value insurance contract or an annuity contract, the account holder shall be deemed to be any person who is entitled to receive a payment by reason of the contract.
or “entity” means a legal person or legal instrument, such as a capital company, a partnership, a trust or a foundation
he concept of tax residence refers to the status of taxpayer in the country for reasons of residence of the natural person or entity, other than the mere holding of punctual tax obligations derived from the mere holding of goods or assets in a country or of obtaining certain income with source in a country.
Tax identification number or assimilated issued by the competent authority of the country of tax residence. The regulations contemplate the possibility of not providing the TIN to a financial institution in the following cases: