Introduction
The Common Reporting Standard (CRS), developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions. The Common Reporting Standard (CRS) applies in the European Union under the Council Directive 2014/107/EU amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation.
Legal framework
The G20 finance ministers and central bank governors approved a specific series of measures for the new global standard for the automatic exchange of financial account information on tax matters in September 2014.
The measures aim at tax compliance to combat unreported and untaxed income at the country where it is reportable.
Implementation of framework
The financial institutions must:
- Identify and collect relevant information regarding their customers’ tax residency status in countries that participate in the automatic exchange of information.
- Report this information to the competent Portuguese tax authorities every year.
Information reported to the tax authority
The Portuguese tax authorities exchange the information collected from the financial institutions with the tax authority where the clients are tax residents. This information includes:
- Full name / Company name
- Address
- Tax identification number (TIN)
- Account details and balance
- Payments with which the account is credited
To determine the tax regime regarding the CRS and the European Directive of Administrative Cooperation (DAC2), we ask you to fill in special self-certification forms and submit them along with the necessary supporting documents:
- Self-certification form for individuals.
- Self-certification form for entities.
- Self-certification form for controlling persons.
Additional information about the CRS
Given that we cannot offer tax advice, you can get more information on the CRS and the list of jurisdictions / countries that have signed the agreement on automatic exchange of financial account information from:
- The Organisation for Economic Co-operation and Development (OECD) - http://www.oecd.org/tax/automatic-exchange/about-automatic-exchange/
- The Portuguese Tax Authorities website - https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/Trocas_Info_Internacionais/AEOI_DAC2_CRS/Pages/default.aspx
- Your tax advisor.
Implementation of the CRS
The CRS applies in Europe by virtue of the European Directive of Administrative Cooperation (DAC2) and in the OECD member countries that have signed the multilateral agreement on automatic exchange of financial account information.
Financial institutions must collect information regarding the tax residency of their customers in compliance with Annexes II and III of Decree-Law no. 64/2016, of 11 October.
Collection and processing of your personal data under the CRS
Any information we collect based on your self-certification documents is transmitted to the competent tax authorities for the fulfillment of Vivabanks' legal obligation, in accordance with the applicable legal framework on the CRS. For information on your personal data processing by Vivabank in accordance with the EU Regulation 2016/679 (General Data Protection Regulation) you can refer to Vivabanks’ Privacy Policy.