In 2014, the Organization for Economic Cooperation and Development (OECD) has published standards for the automatic exchange of tax information. These standards will be the next step in improving fiscal transparency.
Uniform requirements are set out in the documents - Competent Authority Agreement (CAA) and Common Reporting Standard and Due Diligence for Financial Account Information (CRS).
The standards of tax information exchange are similar to the requirements of Foreign Account Tax Compliance Act (FATCA).
- Definition of tax residence of the customer;
- Aggregation of financial information for reports on all investment income - including data on the percentage balances, balances, income from the sale of financial assets, dividends, funds, trusts;
- Definition of Passive Non-Financial Entity Controlling person, identify their tax residence;
- Customer accounts Due Diligence and the procedure for self-certification of the tax residence of the customer.
The first data exchange is scheduled for September 2017 and will be held on an annual basis.
Starting from 01.01.2016 the Company is obliged to make acceptance and study of clients in accordance with CRS.
More information and requirements are fully are available at the following link:
Information about the countries – who signed CAA respectively tax resident will be applied with respect to which these requirements:
Changes in legislation introduced in the Republic of Latvia Law on Taxes and Fees took place in 2015. Cabinet Regulations will come into force in December 2015.
The Company plans to continue to inform its clients and potential clients about further events held in the framework of the introduction of CRS.