Comply Catch-up May 2023 – Issue 29

Key Updates and Reminders 

• The IRS updated Tax Treaty Table 1, Tax Rates on Income Other Than Personal Service Income Under Chapter 3, Internal Revenue Code, and Income Tax Treaties (Rev. May 2023).
  • The rates for Spain were updated and footnote ‘zz’ added to the table. You can review the latest treaty table here.

 

FATCA / CRS Key Updates and Reminders – Select Jurisdictions

IRS

• On May 9, 2023, the IRS released Issue Number 2023-01 notifying taxpayers that the FATCA International Data Exchange Service (IDES) portal will be open for testing from Monday, June 5, 2023, at 8:00am EDT to Friday, June 30, 2023, at 5:00pm EDT. The test session will only be open to users that completed IDES enrollment by Thursday, June 1, 2023.

 

OECD

• The OECD published updates for information on Tax Identification Numbers (TINs), Tax Residency rules and legislation for various jurisdictions during the month.
• On May 15, 2023, OECD announced that Sierra Leone became the 168^th member of the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum).

 

British Virgin Islands

• On May 26, 2023, the British Virgin Islands tax authority issued a Press Release, Tax Identification Number (TIN) Update, providing further relief for the reporting calendar years of 2022, 2023 and 2024 which is limited to the reporting of US TINs relating to preexisting accounts.
  • As a result of the Notice, the International Tax Authority (“ITA”) would like to advise reporting Financial Institutions (“RFIs”) that the BVI Financial Accounts Reporting System (“BVIFARs”) allows for the use of the updated TIN codes issued in the 2023 Notice and the TIN Codes issued by the IRS in May 2021.
  • The updated TIN codes and related scenarios can be found in the Press Release.
• On May 24, 2023, The British Virgin Island tax authority announced that the annual fee for using the BVI financial account reporting system (BVIFars) portal is still on track for 2023. Once the portal goes live, more details will be provided about the process and options available for making payments.

 

Cayman Islands

• As a reminder, in April the Department for International Tax Cooperation (DITC) issued an updated version of the DITC portal user guide (v9.3). The latest user guide can be found here.

 

Germany

• The Federal Tax Office of Germany (BZSt) published an update announcing that the production environment for transmitting FATCA data for the 2022 reporting period is now available. The deadline for 2022 FATCA reporting is July 31, 2023.

 

Guernsey

• On May 10, 2023, the tax authority in Guernsey issued Bulletin 2023/4 announcing that there is no change in the deadline for both FATCA and CRS reporting. Reporting Financial Institutions in Guernsey are required to submit 2022 FATCA and CRS reports to the Guernsey tax authority on or before June 30, 2023.

 

India

• On May 4, 2023, the Central Board of Direct Taxes (CBDT) of India, issued a circular providing clarification on FAQs 3 and 6 issued by the IRS for FATCA reportable accounts.

 

Luxembourg

• On May 3, 2023, the Luxembourg Parliament passed a bill implementing Council Directive (EU) 2021/514 (DAC7).
  • In the bill, there are additional reporting requirements for Reporting Financial Institutions related to CRS and their reportable account holders. The bill notes the following:
    • Each Luxembourg FI is required to notify each individual that their information will be gathered and transmitted in accordance with the law; and
    • Each Luxembourg FI is required to provide each individual with all the information they may have access to within a reasonable timeframe that would allow them to exercise their data protection rights.
  • Under this bill, the implementation of DAC7 will mandate Reporting Financial Institutions to notify individual account holders that are subject to CRS reporting of the information that is to be reported to the Luxembourg Tax Authority (ACD) prior to the submission.

 

Singapore

• On April 27, 2023, the Inland Revenue Authority of Singapore (IRAS) announced that all Singaporean Financial Institutions (SGFIs) are required to submit both FATCA and CRS returns by May 31, 2023.
• In the announcement, IRAS advised all SGFIs to submit FATCA returns early so there is time to resolve any unexpected issues during the submission process. It was noted that enforcement actions will be taken against Reporting SGFIs that do not submit their FATCA returns on time.

 

Spain

• On May 18, 2023, the Lower House of the Spanish Parliament approved a bill implementing European Directive 2021/514 (DAC7). This Directive would introduce new reporting requirements for digital platform effective January 1, 2023.

 

United Kingdom

• On May 2, 2023, the United Kingdom HM Revenue & Customs (UK HMRC) announced changes to its list of Common Reporting Standard (CRS) Reportable Jurisdictions. UK HMRC has removed the following jurisdictions:
  • Kenya
  • Moldova
  • Uganda

You can review the complete list of UK Reportable Jurisdictions here.

Comply Updates

On behalf of Comply Exchange, we would like to thank the Tax Reporting Group for hosting the 2023 Tax Reporting & Withholding Conference. Your team’s hard work and dedication made the conference a success and provided an invaluable platform for tax professionals to stay informed on the latest trends and developments in the field. We appreciate the opportunity to participate and sponsor.

Comply Exchange is excited to announce our sponsorship of the upcoming Kaplan International Tax Withholding and Information Reporting Conference, taking place from June 6th through to the 8^th in New York. As a leading provider of compliance solutions for tax professionals, we are excited to support this event and participate in the conversations that will shape the future of our industry. We look forward to connecting with attendees, sharing our expertise, and continuing to drive innovation in the field of tax compliance. Grab your tickets HERE.

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If you would like to schedule a demo and discuss how Comply can help you automate and centralize your information reporting and withholding requirements, contact us at contact@complyexchange.com.