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 it was generated.
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 Greek tax authority every year.
Information reported to the tax authority
The Spanish tax authority exchanges the information collected from the financial institutions with the tax authority where the clients are tax residents. This information includes:
- Full name / Corporate name
- Address
- Place and date of birth (in case of natural persons)
- Tax identification number (TIN)
- Account details and balance
- Interest
- Dividends
- Tax regime
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/
- Your accountant.
Further information may be found in the following webpages:
- Royal Decree 1021/2015, of November 13, which establishes the obligation to identify the tax residence of the persons who hold ownership or control of certain financial accounts and to report on them in the field of mutual assistance - (https://www.boe.es/diario_boe/txt.php?id=BOE-A-2022-20274)
- Order HFP/1192/2022, de 1 de diciembre - (https://www.boe.es/diario_boe/txt.php?id=BOE-A-2022-20274)
- STA CRS FAQS: Tax Agency: FAQs - (https://sede.agenciatributaria.gob.es/Sede/en_gb/todas-gestiones/impuestos-tasas/declaraciones-informativas/modelo-289-decla_____ras-ambito-asistencia-mutua/preguntas-frecuentes.html)
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:
- Royal Decree 1021/2015, of November 13, which establishes the obligation to identify the tax residence of the persons who hold ownership or control of certain financial accounts and to report on them in the field of mutual assistance.
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 the processing of your personal data by Vivabank in accordance with the EU Regulation 2016/679 (General Data Protection Regulation) you can refer to Vivabanks’ Privacy Policy.