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Common Reporting Standard

Common Reporting Standard (CRS)

What is the Common Reporting Standard (CRS)?

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.

 

What is the LEGAL BASIS of the CRS for a Luxembourg bank?

The Luxembourg Law of 18 December 2015 on the automatic exchange of information in tax matters

  • transposing Council Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation;
  • amending the Law of 29 March 2013 (as amended) on administrative cooperation on tax matters.

 

Which CLIENTS are affected by the CRS?

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:

  • For clients who are legal persons, a self-certification giving the entity’s CRS classification and defining the natural persons who control the structure (if applicable) shall be requested.
  • For clients who are natural persons, tax residency shall be determined on the basis of information held by the financial institutions (CRS indicia) and confirmed (if necessary) by a self-certification provided by the clients.

 

WHO IS AFFECTED BY THE CRS REPORTING?

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