At the request of the G8 and the G20, the Organization for Economic Co-operation and Development (OECD) has developed an international standard to improve transparency and the automatic exchange of tax information: the Common Reporting Standard (CRS). In June 2018, the standard already applies to the 100 countries who have signed the agreement.
The aim of the CRS is to allow tax administrations to have a systematic knowledge for tax purpose of financial assets held abroad by their residents.
To implement the automatic exchange of information, the standard is based on the combined action of:
- client account holders, who must report their tax residence via self-certification in order to determine whether they should be regarded as "non-residents";
- financial institutions, which must report annually to their local tax authority "non-resident" clients, their account balance and the financial income they have received in that year;
- tax authorities of participating countries, which must send the information to the tax authorities of the country corresponding to the tax residence filed by the client.
The regulation has been implemented since 1st January 2016.
The position of Natixis
Natixis complies with the OECD's requirements by applying the Common Reporting Standard to its entities in all the countries where it is present and which are impacted by this regulation, for all concerned activities.
What is the consequence for our customers?
Customers of Natixis' entities located in a country committed to implementing CRS from January 1st, 2016 (or 2017), who want to open a new account, must report information through a systematic "self-certification" prior to the opening of any account. This report must contain the name, address of tax residence(s) - in case of multiple tax residences - as well as the tax identification number(s) if they exist.
Furthermore, legal persons must specify their status among those of the CRS regulation. If the non-financial entity is passive, in the sense of CRS "passive NFE", tax residence and identification numbers of the entity's effective beneficiary or beneficiaries must also be reported.
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