Automatic Exchange of Information

On this page we explore FATCA (The Foreign Account Tax Compliance Act), CRS (Common Reporting Standard) and CbCR (Country by Country Reporting).

On this page we explore FATCA, CRS and CbCR.

Country by Country Reporting

Country by Country reporting was introduced to Malta by L.N 400 of 2016. It amended the Cooperation with Other Jurisdictions on Tax Matters Regulations S.L 123.127 (“The Regulations”).

Common Reporting Standard

The OECD has proposed new rules for the Automatic Exchange of Information in Tax Matters between tax authorities in participating jurisdictions, known as the Common Reporting Standard (‘CRS’).

The OECD (Organisation for Economic Co-operation and Development) CRS is a big step towards a globally coordinated approach to disclosure of income earned by individuals and organizations. As a measure to counter tax evasion, it builds upon other information sharing legislation, such as FATCA (the US Foreign Account Tax Compliance Act) and the European Union (EU) Savings Directive.

FATCA and CRS regulations have had a profound impact on financial institutions (FIs) as well as companies involved in investing or trading activities resulting in cross-border payments. In response, these companies and FIs have been very focused on determining the impact of these regulations on their business, and in finding the right processes and solutions for compliance.

KPMG Malta professionals have been instrumental in the development of FATCA and CRS regimes while serving in advisory roles with various government entities and financial services industry sectors.

In addition, our professionals have undertaken some of the largest international FATCA remediation and look-back exercises, and have global experience in designing, implementing and testing FATCA operating models and controls.

With our combined knowledge of tax regulations, anti-money-laundering
processes, operational procedures, account and payment systems, and more, we can provide our clients with compliance services and products such as customer onboarding technology and other proprietary technology solutions.

Building on FATCA: Getting ready for CRS

The Organisation for Economic Co-operation and Development proposed a CRS for the Automatic Exchange of Information (AEOI) that will see a significant increase in FIs' due diligence and reporting obligations. The CRS will be effective from January 2016 for more than 50 "early adopter" countries. FIs based in a country that adopts the CRS will, subject to the enactment of enabling legislation, be compelled to implement new requirements on customer onboarding, pre-existing customer due diligence, entity and product classification, governance and reporting.