In 2016, the Bank took part in the intra-EU automatic exchange of information on interest for 2015 in accordance with the Directive on the Taxation of Savings Income.
On 1 January 2016, Luxembourg entered into the CRS automatic exchange of information developed by the OECD and transposed into European law by Directive DAC/2.
By 30 June each year at the latest, the Bank will automatically report to the Luxembourg tax authorities (Administration des Contributions Directes) the personal financial data for the previous year for the accounts of the persons concerned.
Before 30 September each year, the Luxembourg tax authorities will transfer this information to the tax authorities of the client’s country of tax residence or to those of the countries in which indicia have been detected without being invalidated by a self-certification.
More than 100 countries will be in scope for reporting from 2017.
The Luxembourg Law of 18 December 2015 on the automatic exchange of information in tax matters
In Luxembourg, any person holding an account at a financial institution as of 1 January 2016, is affected by the CRS. The term “person holding an account” refers to the natural person(s) holding the account in addition to any other legal persons or entities.
Luxembourg financial institutions are responsible for determining their clients’ tax residency:
Luxembourg law requires us to disclose the identity of our reportable clients, as well as their personal and financial information for the past year, to the local tax authorities (Administration des Contributions Directes). This information will then be passed on to the tax authority(ies) of the client’s country or countries of residence.
A client who is a natural person is deemed “reportable” if he is a resident in a reportable jurisdiction or has at least one invalidated CRS indicia in such a jurisdiction. Consequently, if the person holding the account does not submit a correctly filled-in self-certification form, the Bank shall report this person on the basis of the information which it has (i.e. a client may reported in several countries).
A client who is a legal person is reportable if required by its status (i.e. Passive or an Investment entity in a non-reporting jurisdiction) and if it is incorporated or fiscally resident in a reportable jurisdiction or if it is controlled by a natural person resident in a reportable jurisdiction