Common Reporting Standard and Swiss Federal Law on international automatic tax information exchange
The Common Reporting Standard (or “CRS”) of the Organisation for Economic Co-operation and Development relating to financial account information reporting and due diligence and the Swiss Federal Law on international automatic tax information exchange (“LAIE”) entered into force in Switzerland on 1 January 2017.
To date, approximately 100 countries, including Switzerland, have committed themselves to introducing this global standard. The CRS requires all Swiss financial institutions, including the Bank, to identify accounts subject to reporting and to report such accounts each year to the Swiss Federal Tax Administration (the “AFC”). The AFC forwards such information on receipt to the relevant jurisdiction of residence, provided that the relevant jurisdiction is one with which Switzerland has agreed to implement the automatic information exchange (a “Partner Jurisdiction”). The up-to-date list of the Partner Jurisdictions with which Switzerland has agreed to implement automatic information exchange may be consulted by clicking on the link at the bottom of the page. This list is updated every year to include any new agreements to implement automatic information exchange signed by Switzerland.
The relevant accounts are either accounts held by natural persons in their own names or accounts held by entities. In the case of accounts held by entities, the identification and reporting obligation may also cover controlling persons.
The information which must be reported includes personal information and information relating to the reportable account. The relevant personal information is comprised of the name, address, jurisdiction of residence, tax identification number and date of birth of the account holder or the effective beneficiary or the controlling person. The account number, the total gross amount of dividends, interest and other investment income, the total gross amount of proceeds from the sale and purchase of financial assets and the balance or value of the account at the end of the relevant calendar year are also reported.
For more information, the Bank invites you to consult a specialist adviser or the information relating to the CRS available on the websites of the Federal Tax Administration and the OECD (please see links below).