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Comply Connect – June – Issue 01

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Comply Connect - Logo

Comply Connect – June – Issue 01

David Marley CEO

I would like to thank Kaplan for hosting the International Tax Withholding and Information Reporting 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.

Coming up in July 2023

  • Bahamas: AEOI Portal

    As a reminder, the Bahamas AEOI Portal will open on Friday, July 14th at 9am EST for FATCA, CRS, and CbC registrations and submissions.

  • Bermuda: IDES Testing Session

    The FATCA International Data Exchange Service (IDES) testing period has been extended to Friday, July 7, 2023, at 5:00 PM EDT to accommodate some late changes to programming.

  • Cayman Islands – CRS/FATCA Reporting and CRS Filing Declaration

    Countdown to Deadline: As a reminder, the reporting deadline for CRS and FATCA reporting, and CRS Filing Declaration for Cayman Islands is fast approaching. The reporting deadline for 2023 to report on 2022 reportable accounts is July 31, 2023.

  • Jersey: AEOI Portal

    The Government of Jersey posted an update noting that on Saturday, July 1st, most Jersey Government systems will experience short breaks in service and may not be available as usual. Also, planned maintenance is expected on the AEOI portal and the portal will be unavailable on July 5th.

  • Malaysia: FATCA Reporting

    The Inland Revenue Board of Malaysia (IRBM) has announced an extension to the deadline for submitting FATCA returns on its website. The new deadline for reporting years 2014 to 2022, including Nil returns, is now July 31, 2023.

  • St. Vincent and the Grenadines: FATCA and CRS 2022 Reporting Period

    On June 8, 2023, the Inland Revenue Department (IRD) of St. Vincent and the Grenadines published an announcement advising all Financial Institutions that the AEOI portal will be available for FATCA and CRS submissions for the 2022 reporting period from Monday, June 12, 2023, to Monday, July 31, 2023.

June 2023 Key Updates

U.S. – Chile Income Tax Treaty

On June 22, the U.S. Senate approved the tax treaty between the United States and Chile. While the United States-Chile income tax treaty was signed in February 2010, it has been pending ratification since. The Senate’s approval of the tax treaty was subject to two reservations, so Chile must now approve the reservations. The treaty will not be ratified and entered into force until Chile approves the two reservations and both countries mutually approve the tax treaty.

Form 1042-T, Annual Summary and Transmittal of Forms 1042-S

On June 26, the IRS released a draft version of the Form 1042-T, Annual Summary and Transmittal of Forms 1042-S.

IRS – QI Agreement Sessions

The IRS will be hosting in person presentations in the United Kingdom and Canada on the new QI Agreement and completing Forms 1042/1042-S. The presentations will be given in two separate sessions repeated over 2 days. Session 1 will cover topics such as basics of the new QI Agreement, QI compliance, and the QI Certification/ Periodic Review process. Session 2 will cover completion of Forms 1042/1042-S.  There is no cost to attend these sessions. Find additional information here.

June 2023 FATCA & CRS Headlines

OCED: Updates to Crypto-Asset Reporting Framework and 2023 update to the Common Reporting Standard

On June 8, 2023, the Organization for Economic Cooperation and Development (OECD) published a new taxation framework, Crypto-Asset Reporting Framework and 2023 update to the Common Reporting Standard, for the digital currency industry and central bank digital currencies (CBDCs). Under this new framework, digital currency transactions will be exchanged and reported in line with existing rules and regulations.

OECD: Updates to Tax Residency and Tax Identification Numbers

The OECD published updated information on Tax Identification Numbers, Tax Residency rules and primary and secondary legislation for various jurisdictions. Tax Identification Number information was modified for Belize, Seychelles, Korea, Poland, Mexico, Spain, and Latvia. Tax Residency rules were modified for Seychelles, Korea, Poland, Mexico, and Spain. Legislation was modified for Seychelles, Costa Rica, Mexico, Spain, and Argentina.

British Virgin Islands: Technical Difficulties Notice

The International Tax Authority (ITA) of the British Virgin Islands issued a Notice informing all users of the BVI Financial Account Reporting System (BVIFARS), that it is aware of technical difficulties being experienced by users while attempting to file. Penalties will not be issued for late filings that were caused by these technical difficulties.

Cyprus: FATCA/CRS/DAC2 – Registration & Data Submission User Guide

The Ministry of Finance of the Republic of Cyprus published an updated FATCA/CRS/DAC2 – Registration & Data Submission User Guide.

Guernsey: FATCA and CRS Reporting Deadline

The Revenue Service of the States of Guernsey issued a communication reminding all Reporting Financial Institutions that the TY2022 FATCA and CRS reporting deadline is June 30, 2023.

Luxembourg: FATCA – New Instructions for TIN Codes

On June 9, 2023, the Luxembourg Tax Administration published an announcement informing Reporting Financial Institutions that the new TIN codes introduced by the IRS are accepted by the ACD. These provisions do not replace instructions in Section 3.6.6 of ECHA 3 but should work in conjunction with.  

Malta: Digital Platform Operators (DAC 7)

On June 23, 2023, the Office of the Commissioner for Revenue of Malta published guidelines in relation to the reporting obligations of Digital Platform Operators (DAC 7).

Mauritius: CRS List of Participating Jurisdictions

On June 19, 2023, the Mauritius Revenue Authority (MRA) published a list of participating jurisdictions to be used by Financial Institutions for CRS purposes in respect of 2022 reportable accounts.

South Africa: Third Party Data Annual Submissions Update

On June 6, 2023, the South African Revenue Service (SARS) published an update informing Financial Institutions that the FATCA and CRS filing period has now closed. Approximately 99% of expected data was received. SARS reminds the remaining 1% of entities who have not yet submitted to do so as soon as possible to avoid penalties.

St. Kitts and Nevis: FATCA and CRS Reporting Deadline Extension

On June 6, 2023, the St. Kitts and Nevis Inland Revenue Department issued an Industry Advisory informing Financial Institutions that the FATCA and CRS reporting deadline of May 31, 2023, has been extended to August 29, 2023.

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