Following the implementation of US FATCA legislation and signing of global agreements between the US and other countries, for the practical implementation of the FATCA and the exchange of information, the Organization for Economic Co-operation and Development (OECD) has developed and approved the Common Reporting Standard – CRS. The CRS represents the international consensus on automatic exchange of financial account information for tax purposes, on reciprocal basis.
This Standard has a common philosophy and implementation framework with FATCA, several jurisdictions (including Cyprus and Greece) have committed to implement it and other jurisdictions have committed themselves to signing it in the near future.
The regulation represents reciprocal exchange of financial account information (on deposits, income and gross interest) between the involved parties, for the tax residents of those jurisdictions. The directive has been ratified by the Council of Europe and regulations have been issued for its implementation by the Member States of the European Union.
The Republic of Cyprus is included within the first group of jurisdictions that has implemented the CRS Directive with all relevant obligations, as of 1st January 2016 (the first submission has been already implemented regarding the year 2016).
Since the Republic of Cyprus has committed to implement the CRS as of 1st January 2016, all Financial Institutions and Organizations registered in Cyprus must comply with the CRS Directive and are obliged to submit account information for the holders who are tax resident in jurisdictions participating in CRS.
More information can be found at the following websites:
• OECD - CRS: www.oecd.org/tax/automatic-exchange/common-reporting-standard/
• For the full list of countries participating in the CRS, as well as the dates on which they will begin to implement the exchange of information, you can see the OECD's Automatic Information Exchange website: www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/crs-by-jurisdiction/
• http://www.mof.gov.cy/mof/taxdep.nsf/index_en/index_en?OpenDocument
• Cyprus Banks Association: www.acb.com.cy The Common Reporting Standard and its implementation in Cyprus.
Related Documents
• Self certification form to establish foreign tax status – Legal Entities
• Customer Profile – Individuals/Join accounts
