What is the Common Reporting Standard (CRS)?
In 2014 the Organization for Economic Cooperation and Development (OECD) has published a global Standard for the Automatic Exchange of Financial Account Information. The so called Common Reporting Standard (CRS) essentially constitutes a regulatory reporting requirement for Financial Institutions seated in participating jurisdictions and pursues the aim to avoid tax evasion.
In December 2014 the CRS was implemented in the EU-Directive on Administrative Assistance in Tax Matters. Due to that Member States were obligated to implement the provisions into national law. In Albania this Standard was implemented by the Law NOo.4 date 30.01.2020 "On Automatic Exchange of Financial Accounting Information".
Starting from the year 2020 Financial Institutions seated in Albania are obligated to implement procedures and measures in order to meet the due diligence obligations according to this Law.
Customer Identification, Documentation and Reporting Obligation of Albanian Financial Institutions
According to the provisions set forth at this Law, Financial Institutions seated in Albania are obligated to implement appropriate measures to identify their customer's tax residence (relevant customers are private individuals, entities and under certain circumstances controlling persons) and the Tax Identification Number of the respective jurisdiction of tax residence. Financial Institutions are further required to report financial accounts maintained by customers who are resident for tax purposes in a participating jurisdiction to the national tax authority which again may exchange the information with the tax authorities of another country or countries in which the customer (or in certain cases the controlling persons) may be tax resident.
The Bank it is required to report every year to the Albanian tax authority regarding the affected financial accounts on all participating states in the CRS Regulations that are identified as a result of the tax residence check, whether they feature in the customer's declaration or are identified through the examination of data recorded in the Bank's registries or publicly available data. The first reporting it is scheduled to take place within 31 July 2020. At next years, the reporting should take place within 30th May.
Reportable Data according to CRS Albanian Law
The report of financial accounts includes certain data about the account holder (in certain cases also about the controlling person) as well as data about the account. According to the provisions of the Law, the following information has to be reported to the tax authority:
In the case of entities additionally the controlling person(s) of the entity, identified in accordance with the provisions of the Law on "Anti-Money Laundering":
Not reportable "excluded" accounts
In this regard the legislator has also defined certain exemptions for accounts which are no reportable financial accounts.
Non reportable persons:
Furthermore an exemption exists for specific customers who are not defined as "reportable persons". These are Financial Institutions, Governmental Entity, International Organizations, Central Banks, Corporations the stock of which is regularly traded on one or more established securities markets (or a related entity thereof).
Mandatory Self-Certifications for the Accounts/Customers
In general the obligation to provide a Self-Certification applies for all non resident customers. If customers are unsure about their tax residence(s), they should consult their tax adviser in order to clarify their residence(s) for tax purposes.
Hence all customers who want to open a new account are required to provide a reasonable Self-Certification to determine their tax residence(s) and their respective Tax Identification Number(s).
Under certain circumstances also for Pre-existing Accounts/Pre-existing Customers that do not open a new account are also required to provide a reasonable Self-Certification in order to clearly determine their tax residence(s) and their Tax Identification Number(s). In general, the necessary TIN information to be provided by the customer correlates with the unlimited income tax liability of the tax resident in the country of tax residence.
It is important to emphasize that the Bank is prohibited from providing any tax or legal advice.
Further information about the OECD Common Reporting Standard can be found on the Automatic Exchange Portal of the OECD (https://www.oecd.org/tax/automatic-exchange/about-automatic-exchange/) and to the website of Drejtoria e Pergjithshme e Tatimeve: (https://www.tatime.gov.al/c/6/455/shkembimi-automatik-i-informacionit).
Also you can find Frequency Asked Questions here: https://www.oecd.org/tax/exchange-of-tax-information/CRS-related-FAQs.pdf
For any questions or uncertainties regarding the Automatic Exchange Of Information, you may also write to the email address of Drejtoria e Pergjithshme e Tatimeve: Helpdesk.firstname.lastname@example.org
Statement of Consent_CRS
*Must be printed and completed by the three client categories above
Please complete the Statement of Consent and the Self-Declaration Form depending on the category you belong to, in the following ways:
-By appearing at one of branches of the bank, with your valid identity document (Identity Card or Passport).
- If you are unable to appear at the bank, you can download these forms, sign them and then send them scanned to the bank's email address: email@example.com. Please make sure you complete these documents correctly before sending them to the bank
The self-declaration can be made by another person whom you have authorized with a special power of attorney to perform this action.
You are also kindly requested to get acquainted in advance with the requirements of Law No. 04/20120 and the relevant bylaws before completing the Statement of Consent and the Self-Declaration Form with your personal tax data.
Why do I need to complete these documents?
In the framework of the implementation of Law no. 4/2020 "On Automatic Exchange of Financial Account Information", Clients are responsible for declaring or not declaring the Tax Residence and Tax Identification Number.
The customers of the bank are personally responsible for the veracity of the declared information
Further documents and links:
Foreign Account Tax Compliance Act (FATCA) is a US legislation that was enacted in March 18, 2010 and became effective on July 1, 2014. FATCA is essentially a regulatory reporting requirement for foreign financial institutions on their US account holder base. ProCredit Bank Albania as all units of ProCredit Group have recognized the importance of FATCA and comply with the FATCA requirements.
Bank fulfills FATCA requirements regarding customer identification and reporting based on customer Consent.
ProCredit Bank Albania sh.a has already registered itself on the U.S. IRS website as a Global Intermediary Institution regarding Fatca issues.