Isoi - about whom will be reported first? Automatic exchange of information on financial accounts Active non-financial organization Examples

29.06.2016

On May 12, 2016, during the OECD forum on tax administration in Beijing, the Federal Tax Service of Russia signed a multilateral agreement of the competent authorities on the automatic exchange of information on financial accounts. The first such exchange for Russia is scheduled for September 2018. This measure was provided for by "the main directions of the Tax Policy of the Russian Federation for 2016 and on the planning period of 2017 and 2018."

What does this mean for Russian taxpayers, as well as for non-residents who have accounts in Russia? What kind of information and in which volume will fall under automatic exchange? Who, how and who will share such information with?

Multilateral Competent Authority Agreement (MCAA) and the Unified Reporting Standard for Financial Accounts (Common Reporting Standard, CRS) were developed on the basis of Article 6 of the Convention on Mutual Administrative Assistance for Tax Affairs 1988 (editors Protocol 2010).

At the level of the European Union, the Directive of 2014/107 / EU dated December 9, 2014 on the amendments to Directive 2011/16 / EU ("On Administrative Cooperation in the Taxation" directive) in terms of compulsory automatic taxation information in the field of taxation. This directive obliges the EU member states to lead their legislation in line with the requirements of MCAA and CRS.

"Lower" (but not less important) The level of regulation includes national legislation and regulatory acts directly ensuring the fulfillment of obligations on the automatic exchange in each individual country.

The difference of automatic exchange from the exchange "on request"

	Exchange on request (1988 Convention in Ed. Protocol 2010)	Automatic exchange (CRS)
Volume of information transmitted	At the request of one state, another state provides the required information regarding individual (specific) persons and operations.	Data transmitted between the competent authorities not about individuals, but information arrays On non-residents serviced by the financial institutions of the exchange country.
	The information to be exchanged under the Convention is "any information ... which is presumably important to administering and ensuring compliance with tax legislation under which this Convention is subject to" (paragraph 1 of Art. 4).	A closed list of data to be exchanged is defined in the CRS Standard I section, and is limited. only data on the accounts of non-residents, which have financial institutions (First of all, banks) of participating jurisdictions.
Format and frequency of exchange	Information is transmitted in writing in response to a request received.	Information is automatically in a unified electronic format once a year (next to the reporting).

What countries will there be an automatic exchange?

According to Article 6 of the 1988/2010 Convention, the automatic exchange procedures are determined by the mutual agreement "two or more" parties. In practice, a model of a multilateral agreement was taken as a basis, due to the countries to sign such an agreement, the individual bilateral agreements will not need to sign separate bilateral agreements.

On June 28, 2016, a multilateral agreement was signed by the Multilateral Agreement 83 jurisdictions. Part of the countries pledged to implement the first (essentially test) automatic exchange of information in September 2017, part - in September 2018

September 2017 Implement the first automatic exchange required Anguilla, Argentina, Barbados, Belgium, Bermuda, Bulgaria, British Virgin Islands, United Kingdom, Hungary, Germany, Guernsey, Gibraltar, Greenland, Greece, Denmark, Jersey, India, Ireland, Iceland, Spain, Italy, Kaymanov Islands, Cyprus, Colombia, Korea (Yuzhn.), Curaçao, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Montserrat, Netherlands, Niue, Norway, Isle of Man, Turks Islands and Kaikos, Poland, Portugal, Romania, San Marino, Seychelles, Slovakia, Slovenia, Faroe Islands, Finland, France, Croatia, Czech Republic, Sweden, Estonia, South Africa.

September 2018 Conduct the first automatic exchange. Australia, Austria, Albania, Andorra, Antigua and Barbuda, Aruba, Belize, Ghana, Grenada, Israel, Indonesia, Canada, China, Costa Rica, Mauritius, Malaysia, Marshall Islands, Monaco, Nauru, New Zealand , Cook Islands, Russia, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and Grenadines, Samoa, Sint-Maarten, Chile, Switzerland, Japan.

The full list of countries that signed MCAA can be found at the permanent link.

What is the automatic exchange?

As part of the automatic exchange, competent (usually - tax) authorities of the involved jurisdiction will be

receive from financial institutions his countries information about the accounts of individuals and legal entities - residents of other countries - MCAA members;
annually transfer this information to the competent authorities of these countries;
receive from competent authorities other countries - participants of MCAA information on the accounts of individuals and legal entities - residents of their country.

Thus, the information will be transmitted on the following chain:

The exchange of information will be carried out between the competent authorities of the MCAA member states (obtained by them from "accountable financial institutions" in their countries) annually on an automatic basis in a unified electronic format.

"Substatement Financial Institutions" Reporting Financial Institutions) Any financial institutions of jurisdiction participating in automatic exchange (first of all - banks, but also brokers, depositories, insurance and other companies), with the exception of government agencies, international organizations, central banks, state pension funds and other legal entities who have a low level of risk to be used in order to avoid taxes.

The exchange of information for a particular calendar year between the competent authorities of the respective countries can be carried out only under the condition:

mCAA data entered into force;
in their countries, there is an internal legislation that requires accountable financial institutions to report for such a calendar year in the amount of and procedure provided for by a single reporting standard (CRS).

Signing MCAA Each state determines the month and the year of the exchange of information. Exchange must be carried out within 9 months after the end of the calendar year for which information is provided.

What information will be transmitted automatically?

Information to be automatically exchanged includes (clause 2 of Art. 2 MCAA):

a) for individuals: - in relation to each account holder (Account Holder);

for legal entities: name, address, taxpayer identification number - in relation to each legal entity - the account holder; as well as name, address, taxpayer identification number, date of birth - in relation to individuals identified as part of Due Diligence procedures as "Controlling persons" (Controlling Persons) of this legal entity;

b) account number (or similar by the equivalent function);

c) the name and identification number of the accountable financial institution (bank);

d) the balance of cash on the end of the relevant calendar year (and if the account was closed this year - at the time of the closure);

e) on Custom Account (Custom Account):

(1) the total amount of interest, dividends or other income obtained in respect of assets placed in this account for the calendar year or the other reporting period;

(2) the overall revenue from the sale or repurchase of assets for which the accounting financial institution acted as a depositary, a broker, a nominal holder or an account holder agent;

f) on deposit accounts (Depository Account) - the total amount of interest received to the account for the calendar year or the other reporting period;

g) According to any other accounts not specified in subparagraphs 2 (E) and (F), the total amount received by the account holder for the calendar year or the other reporting period.

The exchange will be subject to information as newly opened accounts (starting from a specific date) and on already existing accounts (already open to a specific date). These dates are also indicated by each state in annex to the MCAA subscribed.

Preparations for automatic exchange within CRS

Banks transfer information about accountable accounts to the tax authorities of their country in the calendar year following the year to which this information applies.

Before the start of automatic exchange, all banks (and other accountable financial institutions) of MCAA countries will have to carry out special Due Diligence procedures for existing and newly opened accounts of their customers (both individuals and legal entities) in order to "categorize" them For the purposes of subsequent data transfer to the tax authorities and fill the missing information for this.

This information will be detected by banks, firstly, on the basis of the information about the client received as a result of the AML / KYC procedures adopted by this Bank ("Know Your Client" procedures); And secondly, on the basis of information, separately inventive by the client itself (Self-Certification).

Due Diligence existing legal accounts

Immediately pay attention to that, speaking of the account holders, under the word "entity", the standard understands not only the actual legal entities (corporations), but also other education, including partnerships, trusts and funds.

The CRS standard displays existing accounts of legal entities from under automatic exchange (PREEXISTING ENTITY ACCOUNTS), the aggregated residue on which does not exceed $ 250,000 US dollars December 31 relevant year. That is, identification, reconciliation and transmission of information on such accounts will not be implemented.

Accountal bills(Reportable Accounts), that is, accounts whose information is subject to transmission is accounts whose holders are:

one or more " accountable person (Reportable Person), that is, a physical or legal person - a resident of jurisdiction involved in automatic exchange; or
"Passive non-financial organization" (Passive NFE) (hereinafter - "Passive NFO"), one or more controlling person of which is a resident of the involved jurisdiction.

The rules for determining the tax residences adopted in each of the MCAA member countries can be found on the OECD automatic exchanging portal in the section "Rules Governing Tax Residence".

What organizations are "active" and "passive" for the purpose of exchanging information?

"Passive NFO"- This is a non-financial organization that is not "active."

"Active NFO" -this is a non-financial organization, passive income Which for the past calendar year amounted to less than 50% and volume assets that generate passive income or designed to receive them, compiled for the same period less than 50%.

In addition, the standard provides for a number of other signs, each (any) Of which will also allow the organization to "Active NFO", in particular:

nFO shares regularly turn on organized securities markets;
NFO is a state or international organization, a central bank or an organization that has completely owned any of the organizations mentioned;
holding NFOs (under certain conditions);
NFO does not have any activity and does not have the history of activities, but invests in assets with the intention to conduct non-financial activities;
NFO is in the process of liquidation or reorganization in order to continue or resume non-financial activities;
NFO financing or hedging transactions with associated non-financial organizations, and does not provide financing services to other persons;
NFO is a non-commercial organization (responding to a number of signs).

The meaning of the term "passive income" should be determined on the basis of the legislation of each involved jurisdiction. According to the commentary section VIII of the CRS standard (p. 126), under passive income, a part of the overall income is usually understood, including: a) dividends; b) interest; c) income similar to interest; d) rental payments and royalties; e) annunts; e) excess of income over losses as a result of the sale or exchange of financial assets generating passive income; g) excess of income over losses from transactions with any financial assets (including futures, forward, optional and similar transactions); h) excess of income over losses from transactions with foreign currency; and) net income from swap transactions; k) the amounts obtained under the contracts of accumulative life insurance.

So, the accountable financial institution (bank) must carry out the following DUE DILIGENCE procedures (that is, the collection or updating of the client information):

Firstly,determine whether the organization is (Entity) accountable person. To do this, the Bank checks the available information collected within the AML / KYC procedures to determine tax Residency Account holder.

If according to the available information, the account holder is the tax resident of the involved jurisdiction, then this score will be considered as "accountable" (that is, the Bank will have information about him to convey to the tax authority of its country), except when the account holder himself does not declare that He is not a reported person, or this will not establish a bank on the basis of information at its disposal or from public sources.

Secondly,determine whether the organization is "Passive NFO" with one or more controlling person who is accountable persons.For this you need:

1) Determine whether the Holder of the Passive NFO account is. The bank surchates the client to establish its status (except when the Bank has information that allows us to make a reasonable conclusion that the account holder is active NFO);

2) Determine the controlling persons of the account holder. To this end, the Bank relies on the information obtained by him earlier within the framework of AML / KYC procedures;

3) Determine whether the controlling face is "accountable". Here, the Bank also relies on the information obtained by him earlier within the framework of AML / KYC procedures, in case the aggregated balance of the existing passive NFO account does not exceed 1,000,000 US dollars; Either specially spectacles the account holder or a controlling person in order to determine the jurisdiction, in which such a controlling person is a tax residency.

Speaking of " controlling person ",The CRS standard refers to the interpretation of the term "beneficial owner", which is given in the recommendations of the FATF (group of financial measures to combat money laundering). According to him, the beneficiary owner is an individual (person), which ultimately owns the client or controls it, and / or an individual, in whose interests there is a deal.

As a result, if any of the controlled persons passive NFO is a "accountable person", the exchange will be subject to not only information about the client's account, but also on the person controlling it (client).

Due Diligence existing invoices of individuals

To determine the customer belonging to the Bank's participating jurisdiction, on the basis of its information, the tax residency of this client has established.

Standard shares existing personal accounts to:

- "Low value accounts" (Lower Value Account), the aggregated balance at which as of December 31 of the reporting year does not exceed 1,000,000 US dollars; and

- "High-cost accounts" (Higher Value Account), the aggregated balance on which exceeds 1,000,000 US dollars as of December 31 of the year or December 31 of any subsequent year. Collection of information about this category of accounts (and accordingly, the exchange of information on them) will be carried out in priority.

It is important to note that information will be subject to automatic exchange on all accounts of individuals in banks of participating countries, since the standard does not establish for such accounts any threshold amount of the balance, the unrivation of which would derive an invoice from under automatic exchange.

Dates of Due Diligence for the "first queue" of participating countries

Banks of countries starting to automatically exchange in 2017 (for example, Cyprus, Latvia, Estonia), must:

exercise Due Diligence for the exchange goals (in particular, to establish the client's tax residence, the active / passive nature of the legal entity, etc.) in relation to new customers (physical and legal entities - non-residents of the Bank's country) before establishing business relations with them - starting January 1, 2016;
complete Due Diligence (non-residents of the Bank's country), the balance of which exceeds 1,000,000 US dollars, - until December 31, 2016;
complete Due Diligence all existing customers (individuals and legal entities - non-residents of the Bank of the Bank) - until December 31, 2017

Dates of Due Diligence for the "second stage" of participating countries

Banks of countries starting to automatically exchange in 2018 (for example, Russia, Switzerland, Austria) will have:

exercise Due Diligence for the exchange goals (in particular, to establish tax residency, the active / passive nature of the legal entity, etc.) in relation new customers (individuals and legal entities - non-residents of the Bank of the Bank) - from January 1, 2017;
complete Due Diligence existing customers - individuals (non-residents of the Bank's country), the balance of which exceeds 1,000,000 US dollars, - until December 31, 2017;
complete Due Diligence all existing customers (individuals and legal entities - non-residents of the Bank of the Bank) - until December 31, 2018

Generalization

So, the information is sent in the order of automatic exchange:

on individuals (account holders), which are residents of jurisdiction participating in MCAA, in the tax authorities of this jurisdiction;
on legal entities (account holders), which are both active and passive non-financial organizations - in the tax authorities of the country that these legal entities are (if this country is involved in MCAA);
on controlling persons (beneficial owners) of passive NFOs (account holders), if these controlled persons are residents of countries involved in MCAA, in the tax authorities of the country, the residents of which are these controlling persons.

Account Holder in the Bank of the country participating in MCAA	What information is transmitted to the tax authority of the Bank of the Bank	Which jurisdiction, the bank's tax authority transmits information
Individual	About the score of this individual	In jurisdiction, the tax resident of which is this individual
"Active" company	About the account of this company
"Passive" company (resident of the involved jurisdiction) without beneficiaries - residents of participating jurisdictions	About the account of this company
"Passive" company(resident of the involved jurisdiction) with beneficiaries - residents of participating jurisdictions	About the account of this company	In jurisdiction, the tax resident of which is the company
	1) about the account of this company; 2) On the beneficiary owner of the company	In jurisdiction, the tax resident of which is the beneficiary.

Example 1. A company registered in the British Virgin Islands has a bank account in Cyprus. Both jurisdictions participate in MCAA and begin exchange in 2017. In this case, the Cypriot Bank sends data to the Cypriot tax authorum about the company's account (account holder), and then the Cyprus tax authority transmits this information to the authorized BVI authority. If the company is not a "passive NFO" with the beneficiaries - residents of jurisdictions involved in MCAA, the process is completed.

Example 2. If the same situation takes place (see example 1), however, the bank classified as a "passive NFO" and found that its beneficiary is a physical person - a resident participating in MCAA jurisdiction, for example, Russia. In this case, the Cyprus Bank conveys information to the tax authority not only about the company - the counting holder, but also its beneficiary. The tax authority, in turn, sends data to BVI on the account of the Company, and to Russia (the jurisdiction of the Tax Resident of the Beneficiary) - both the data on the company's account and information about its beneficiary (given that in relation to Russia it will be possible only from September 2018).

It is important to take into account that ...

1. Automatic exchange will not be total and comprehensive transmission of information "all and about all". The amount of information to be exchanged is strictly determined by the CRS standard and is limited to a number of "filters":

There are participating in the country's exchange, and there are countries that have not yet approved such obligations;

Participating countries enter the practical sharing phase at the same time;

Information to be transmitted is limited to only the information that can be placed (or other financial institutions, leading customer accounts). The information with other subjects (for example, legal entities register authorities, notaries, tax authorities outside the competence of automatic exchange, financial intelligence authorities, law enforcement agencies, etc.) - under automatic exchange does not fall;

For accounts of legal entities, a plank is 250,000 US dollars. If the balance is below this threshold, information about this account is not subject to;

Not any information is subject to the collection (actualization) and transmission, but only a closed list of accounts, clients and controlling persons installed by the CRS standard;

Data on controlling persons (beneficiaries) is transmitted not for all accounts, but only by those owners are the so-called "passive" companies whose beneficiaries are residents of participating in the exchange of countries. Such a "categorization" for the exchange goals will be carried out by the Banks themselves through standard AML / KYC procedures, with amendments to new CRS requirements and additional customer surveys;

Possible (and inevitable) difficulties associated with the implementation of the CRS standard into the legislation of individual countries are possible. Incompretation of changes to national laws, the adoption of regulators and clarification of regulators, and other legal and technical obstacles may make it difficult to make practical implementation in the stated time frame and coverage of all participating jurisdictions.

2. Nevertheless, automatic exchange can be one of the alternative sources of information, with which the tax authorities of the Russian Federation will be able to establish the fact that the tax resident of the Russian Federation has an undeclared invoice in a foreign bank or unlateled controlled foreign company. Both are an offense and, under certain circumstances, may entail the tax measures (Article 129.5, 129.6 of the Tax Code of the Russian Federation), administrative (Art. 15.25 of the Administrative Code) or Criminal (Article 198, 199 of the Criminal Code of the Russian Federation) of responsibility. Russia's accession to the automatic exchange was repeatedly declared as one of the key ways to improve the efficiency of the tax administration of KIC.

3. According to MCAA and CRS developers, in a certain future, the automatic exchange mechanism must acquire a practically global (by the number of acceding countries). Outside this system, ultimately, can remain only the most "marginal" or insignificant territories, unsuitable for the conduct of international business and storage of savings, so that the transfer to such jurisdictions of tax residency or bank accounts will be deprived of any meaning. On the contrary, participation in the automatic exchange will be one of the signs that have positively affecting the business image of one or another jurisdiction.

Instruction

to fill the form itselfidentifikatition (self-defense)

for clients of legal entities (except credit institutions) for FATCA

Foreign Account Tax Compliance ACT)

GENERAL INFORMATION.

The information specified in the form of self-identification (self-defense) for clients of legal entities (except for credit institutions) for FATCA (hereinafter - the "form of self-identification for FATCA") is requested to fulfill the requirements of the US Taxation Law on Foreign Accounts (Foreign Account Tax Compliance Act , Fatca) aimed at preventing the US taxpayers' avoidance from paying US taxes.

This form is designed to identify a legal entity for FATCA's goals and compiled in accordance with § 1.1471-3 (c) (6) (V) U.S. Treasury Regulations (hereinafter referred to as the US Treasury Instructions).

In connection with the above regulatory acts on all financial institutions, regardless of the country of their registration and activity, the US taxpayers are charged to identify among their clients and report them into the US Tax Service (Internal Revenue Service, IRS). In the event that the Financial Institute client is a person opposing Fatca's fulfillment (for example, which does not provide the full amount of FATCA information required to establish whether such a client is a US taxpayer), FATCA requires keeping with income from the American source (interest, dividends, royalties etc.), transferred to such a person, 30% and directly sent to the funds of the US IRS.

The client is obliged within 5 (five) working days to notify the Bank to change its tax status in the United States. The provision of false or unreliable information in the form of self-defense for FATCA entails responsibility in accordance with the legislation of the Russian Federation and / or the US right.

You can find more complete and detailed information on the fulfillment of the duties of the US taxpayer on the IRS website: www.irs.gov.

Please note that the provisions below are the provisions of this Instruction, including all the terms contained in it and definitions are given for information and are not official translation or clarification of FATCA provisions, the instructions of the Treasury of the USA or other US provisional acts. If you have questions about completing the form of self-defense for FATCA, according to the status of your organization's participation in FATCA, we recommend that you contact your organization's legal service or to legal or tax consultants for clarifications.

General terms, definitions and reductions used

Foreign Financial Institute, Company etc. - created and registered in a state other than the United States.

Ms. - Intergovernmental agreement between the United States and the relevant state to fulfill FATCA requirements.

MS according to the model 1- MS, according to which the financial institutions, located in the state, concluded from the United States, this MS directs the reporting stipulated by FATCA into its local government agencies, which, in turn, send it to the US Tax Service.

MS on model 2 - MS, according to which the financial institutions, located in the state, concluded from the United States, this MCs direct the reporting directly to the US Tax Service.

F.- Financial Institute.

Information for filling out self-identification form for FATCA.

Information to fill item 2.1. "The organization is a financial institution (hereinafter - f) forms of self-identification in order toFatca. .

Financial institutions (FFI) For FATCA purposes, organizations that carry out the following activities are recognized:

Cash receipt activities in the framework of the usual banking (or other similar) activities of the Company (banks, depository. institutions) - Banking or other similar activities (Depository. Institutions ).

Signs of banking or other similar activities (Depository. Institutions ) :

The organization accepts customer funds for a certain period (including adopts deposits, produces bills, serves settlement accounts);

Additionally, the organization carries out one or more of the following activities:

issuance of loans (loans);

purchase, sale, discountting receivables, debt arising from a commercial loan, debt obligations (notes), transfer bills, checks, acceptance bills and other debt documents;

issuance of letters of credit and non-exchange bills;

provision of fiduciary services or trust management services;

providing financing for transactions with foreign currency; or

conclusion of financial lease agreements, acquisition and sale of property, which is the subject of financial lease .

Examples: Banks, microfinance organizations.

Exceptions:The organization is not recognized by banking or other similar activities in the case of:

if the organization accepts deposits (advances or other similar amounts) exclusively as a collateral or to ensure any obligations of the person who provided a deposit (advance or other similar tool) under contracts for sale, leases or other similar agreements concluded between the company and face, Granted deposit (advance).

The simple implementation of one of the activities mentioned above in paragraph 2 without activities on contributions (deposits) is not enough to recognize the company's banking in the sense of FATCA.

Keep financial assets in the interests of one or more persons within one of the main activities (depositia , custodial institutions) - Depositary (accounting and storage activities of financial assets)Custodial Institution. .

Signs of depository activities (activities on accounting and storage of financial assets)Custodial Institution. :

The company takes 1 clients' financial assets for a certain period, including:

leads depositary accounting of financial assets,

conducts accounting of financial assets in special accounts;

performs on behalf of the client's transaction for the implementation of financial assets;

provides lending to the purchase of financial assets;

provides consulting services in connection with assets that are taken into account by the Company;

clearing or calculations on the obligations associated with financial assets.

Examples: Depository.

Exceptions:

The company is not recognized if the company's revenue from depository activity is less than 20% of the company's total revenue or for the period of three years, ending December 31 of the year preceding the year, in which the company's status is determined, or for the period of the company's existence (depending on What time is shorter).

There is a special rule calculation rule for newly created companies;

If the company is fi on other grounds, even if revenue from accounting and storage activities will be less than 20%, accounting and storage accounts (depot account) will be financial accounts.

Are investment companies (Investment. Entities. ) .

Signs of investment companies:

As the main type of its activities, the Company is in the interests or on behalf of the Client one of The following activities:

trade in the instruments of the money market (checks, debt obligations, savings certificates, derivatives, etc.), foreign currency, tools based on courses of foreign currencies, interest rates and various indices; securities in securities or commodity futures;

provision of trust management services on an individual basis or management of collective investment mechanisms; or

providing other services for investment, administration or cash management or financial assets (see footnote above) in the interests of third parties.

The company is managed by another company, which is fi, and this french directly or with the involvement of the Stores of organizations carry out in relation to a managed company, the activities described in this section III above.

The company is a mechanism for collective investments, a Pass Foundation, an Execution Fund, a direct investment fund, a hedge fund, a venture fund, a fund for the redemption of a controlling stake in a loan, or another similar investment mechanism established to implement a specific investment strategy for trade, investment , reinvesting or trade in financial assets.

Example: investment funds, NPF, brokerage companies, companies providing currency trade services (Forex.).

Exceptions:

The company is not recognized if the company's revenue from investment activity is less than 50% of the company's total revenue or for the period of three years, ending December 31 of the year preceding the year, in which the company's status is determined, or for the period of the company's existence (depending on What time is shorter).

There is a special rule for newly created companies;

Collective investment mechanisms that invest directly to real estate can be excluded from the FI category.

Are an insurance / holding company, which is a member of an expanded affiliate group (hereinafter referred to as the insurance company includes an insurance company, provided that such an insurance / holding company concludes insurance agreements with cash- value. or annuity insurance contracts or is obliged to make payments for such products

SignsInsurancecompanies (Specified Insurance Company):

Activities are regulated as an insurance in at least one of the jurisdictions in which the company operates;

The company offers insurance products that provide a redemption amount (Cash Value) or annuity payments;

Revenue (for example, income from premiums and investment income) from insurance, reinsurance and annuity contracts for the last calendar year exceeded 50% of the total revenue for such a year;

The total amount of assets used to carry out insurance activities, reinsurance activities and activities on annuity contracts, for the last calendar year exceeded 50% of the total amount of assets for such a year at any time of this year.

Example: Insurance companies carrying out life insurance.

Are a holding company (Holding Company) or Treasury Center (Treasury.Center) provided that:

the company is a holding company or the Treasury Center for Rag, which includes a bank, depositary, insurance or investment company; or

the holding company or the Treasury Center was created in connection with the use of collective investment mechanisms, a mutual fund, stock fund, a direct investment fund, a hedge fund, a venture fund, a fund for the redemption of a controlling stake in a loan, or other similar investment mechanism created with the aim Implementation of a specific investment strategy.

Signs of a holding company (Holding Company):

The main activity of the company is associated with the possession of (direct or indirect) all or part of the shares of one or more companies participating in RAG;

Partnerships (and other non-corporate formations) are considered as a holding company, if the main activity of the partnership is to hold more than 50% of votes (Voting Power) and the value (Value) in the head company of any RAG (Common Parent Corporation);

Example: Holding companies, special-purpose companies

Exceptions: The holding company does not recognize the FI, if it is registered in the country that has entered into MS from the United States (unless otherwise provided by MS).

Signs of Treasury Center (Treasury Center):

The main activity is related to the investment, hedging and financing of transactions with the participation of members of the RAG of this company or transactions in the interests of members of the RAG of this company for purposes:

risk management changes in the price level or currency rate in relation to the property of RAG or its member;

interest rates risk management, price level or currency rate regarding RAG borrowing (or anyone of its member) obtained or to be obtained in the future;

interest rates risk management, price level or currency rate on assets or liabilities subject to reflection in the financial statements of RAG or its member;

rED's working capital control or any of its member by aggregating cash flows ("Cash Pooling"), investing or trade in financial assets on behalf of and at the expense of the Treasury Center or its relevant member of RAG; or

financing any company included in Rag (Financial Vehicle for the EAG).

The company is included in Rag, which includes one or more fi;

The company was created in connection with the use of collective investment mechanisms, a share fund, stock fund, direct investment fund, hedge fund, Venture Foundation, Fund for the redemption of a controlling stake in a loan or other similar mechanism of investment established with the purpose of implementing a certain investment strategy.

Example: Financial companies, special-purpose companies.

Exceptions:

The company does not recognize FI, if it is registered in the country that has concluded MS with the United States (unless otherwise provided by MS);

The company is not recognized by the Treasury Center, if its shares (shares) belong to a person who is not a member of RAG, and the amounts that can be paid to the shareholder in connection with the repayment of such shares (shares) or in a similar case:

depend on, first of all, from the investment, hedge and financial activities of the Treasury Center, carried out outside Rag;

Financial institutions - US residents (US FI):

Financial institutions - residents of controlled territories (Territory Fi);

Fatca Foreign Financial Institutes (Participating FFI, PFFI)

Foreign financial institutions - registered conditionally participating (Registered Deemed-Compliant FFI);

Foreign financial institutions - certified conditionally participating - (Certified Deemed Compliant FFI);

Foreign financial institutions - residents of countries that have entered into MS on model 1 (Model 1 Reporting FFI);

Foreign financial institutions are residents of countries that have entered into MS on Model 2 (Model 2 Reporting FFI);

Foreign financial institutions released from FATCA requirements (Exempted FFI);

Foreign financial institutions released from FATCA requirements in accordance with MS according to model 1 (nonreporting IGA FFI).

Non-participatory financial institution (NPFFI) is a foreign financial institution, which refused to comply with the requirements of FatCA or cannot meet them due to legal restrictions, as well as the Financial Institute registered in the US Tax Service as a limited participating (Limited FFI) 2

Information to fill item 2.2 "Does the organization refer to one of the categories exempted from FATCA requirements" forms of self-identification in order toFatca. .

Foreign non-financial companies released from FATCA requirements:

Public company is a company whose shares are addressed on the organized securities market (Publicly Traded Entity).

Affiliated company to a company whose shares are addressed in the organized securities market.

Non-commercial organizations that meet certain requirements

Newly created companies created to keep new non-financial activities.

Companies in the process of liquidation, bankruptcy

The company whose shares turn on the securities market is a public company.

The legal entity (company) is recognized as a company whose shares are treated in the securities market (Publicly Traded Entities), subject to the following conditions:

Shares of the company must recognize " regularly traded " (regularly traded). This condition is performed if during the calendar year:

One or more class of shares of the company representing more than 50% of the company's voting shares (taking into account all issued shares), and the cost of which is more than 50% of the company's share of shares, Listing on the Organized Exchange (Requirements to listing, live requirements);

For each class of shares that meet the requirements for Listing Requirements, the following conditions are performed:

transactions were made with these shares on an organized stock exchange for at least 60 days during the previous year (except in cases where the number of such transactions is minimal);

the total number of shares with which transactions were performed on an organized stock exchange, during the previous year, is at least 10% of the average shares issued (issued) in this class.

In addition, FATCA establishes the following special requirements for the criteria for recognizing shares " regularly traded»:

Shares of companies who have committed public placement of shares (IPO) on one or more organized exchange will be recognized as "regularly traded", if transactions are carried out with them during:

at least 1/6 of the part from all days remaining from the moment of placement until the end of the calendar quarter, which produced public placement; and

at least 15 days during each of their subsequent calendar quarters remaining until the end of the year after the placement.

If the company conducts public offering of shares in the 4th quarter of the calendar year, such a class of shares will be recognized as satisfying the criteria for regularly traded shares in a year, in which public accommodation was made if transactions were carried out with these shares during more time:

1/6 of the days remaining until the end of the quarter after the placement; or

5 days from the moment of placement.

The class of shares is recognized regularly applied during the calendar year, if a:

these shares are traded during this year at the organized securities market in the United States;

dealers protruding in the role of "Market Makeer" according to these shares carry out regular quotation of these shares. The dealer is considered "market meker" in the event that it regularly and actively makes transactions for the sale and purchase of shares from owners who are not interdependent.

If the main purpose of making transactions with shares is satisfying the above criteria, such transactions should not be taken into account for analysis.

Thus, the class of shares cannot be recognized regularly listed on the securities market, if there are reasons to believe that trade with these shares as the main goal was pursued by the criteria specified above for the purpose of recognition of shares regularly quoted. Similarly, shares posted during IPO cannot be recognized by the satisfying criteria for "regularly traded shares", if this placement as one of the main objectives had an intention to comply with simplified criteria for recognizing newly placed shares quoted.

Organized stock exchange recognized:

the foreign stock exchange, which is officially recognized, is authorized and regulated by the supervisory authority of the country in which it is located, and the cost of shares traded on this exchange exceeds 1 billion US dollars during each of the three years preceding the year in which the assessment is made. Such an Exchange may include, for example, the Moscow Exchange, London Exchange.

the National Stock Exchange, which is registered in the US Securities Commission (SEC) in accordance with Section 6 of the Securities Market Law No. 1934 (15 USC 78F);

any exchange, which is officially recognized by the Exchange, for the purpose of applying the provision of the "Restriction of Benefits" of the Agreement on the avoidance of double taxation between the jurisdiction of the Exchange and the United States;

any exchange that will be indicated by the Treasury of the United States in further clarifications.

Organization, affiliated with a public company in order to apply FATCA requirements.
The organization is an affiliate organization of another organization, if one of these organizations controls another, or if both organizations are under general control. To this end, control includes direct or indirect ownership of more than 50 percent of votes or capital in the organization.

According to paragraph 1.1471-1 (c) (1) (ii), the instructions of the US Treasury, organization, affiliates - This is a member of the same expanded affiliate group, a member of which is publicly traded by the Company described in paragraph 1.1471-1 (c) (1) (I) of the US Treasury.

An extended affiliate group is defined as (Expanded Affiliated Group) - one and more chains "included" (includible corporations) associated through the ownership of shares (shareholders, shares and other tools (further referred to as "shares") and having a general head corporation (shareholder / COMMON PARENT SHAREHOLDER), provided that:

the parent corporation owns directly shares in at least one of the included corporations; and

the shares of each of the included corporations (except the head corporation) owns one or more other included corporations.

At the same time, possession of shares must comply with the following criteria:

the value of shares is more than 50 percent of the total value of the shares of the relevant company.

Non-Profit Organization (NON-PROFIT ORGANIZATION) -foreign (not American) organization, which is established and operates in the country of its location exclusively for religious, charitable, scientific, artistic, cultural and educational purposes, if it meets all the criteria listed below:

The organization is exempt from income tax in the country of its location;

The organization does not have shareholders or members who have a joint-stock or beneficial share of participation in its income or assets;

Neither the laws of the country's location of the Organization nor the constituent documents of the Organization do not allow any income or assets of the Company to stand out or used with the benefit of an individual or not a charity organization otherwise than for charity events by this organization or as a payment for sufficient compensation for services rendered or the use of property, or as a payment representing the fair market value of the property acquired by the Organization;

The laws of the country's location or the constituent documents of the Organization require that after the elimination or dissolution of the organization all its assets were transferred to the state body (fully belonging directly or indirectly to the government) or another non-profit organization (Non-Profit Organization) or moved to the government of the country, the resident of which is This organization.

Newly created company (Start.- up.company) - Foreign (not American) company, which is not yet working and has no earlier business history, but invests in assets with the intention of activities, with the exception of activities as a financial institution or passive non-financial company (Passive NFFE), Conditions that the organization should not fall under this exception after 24 months from the moment of the initial organization.

Other excluded organizations(The list is not exhaustive):

The company in the process of liquidation, bankruptcy ( Excepted Nonfinancial entities. iN. liquidation or. bankruptcy. ) - Foreign (not American) company, which was neither a financial institution nor a passive non-financial company ( Passive NFFE) At any point over the past five years and which is in the process of eliminating their assets or reorganization in order to continue or resume operations as a non-financial company.

Non-financial member company ( Excepted nonfinancial group. entity. ) - Foreign (non-American) company, which is a member of the non-financial group ( Nonfinancial group.), corresponding to all of the following criteria: (a) the company does not carry out bank or other similar activities (i.e. is not Depository. institution.) or depository activities (i.e. is not Custodial institution.) (with the exception of activities for members of its expanded affiliate group ( Expanded affiliated. group.), (b) the company is a holding company ( Holding. company), treasury ( Treasury. center) or dependent investment company ( Captive. finance company) and the main activity of such a company is accordingly the implementation of holding, treasury or investment activities as indicated in the US Treasury Instructions, (c) the company is not (and has not been formed in connection with or as) the organization ( arrangement.) or an object for investment ( investment. vehicle.), which is a direct investment fund ( Private equity. fund.), investment venture fund ( Venture. capital. fund.), Foundation for the redemption of the controlling stake in the loan ( Leverged. bUYOUT. fund.) or other similar object for investments created for the purpose of investing the acquisition or financing companies and ownership of companies as capital assets for investment purposes.

Wherein:

- Extended affiliate group ( Expanded affiliated. group. , EAG. ) As a general rule, one or more "chains" of companies owned by a common head company owns, while the head company owns more than 50% of the voting / total number of shares of one of the companies of such a group and each of the chain companies has more than 50% / has more 50% of the voting shares of another chain company;

- Non-financial band ( Nonfinancial group. ) As a general rule, an extended affiliate group is considered. Expanded affiliated. group., EAG) corresponding to all of the criteria listed below: (a) no more than 25% of the EAG gross income (with the exception of the income received by the EAG member, which is the newly created company ( Start.- up. companies.) or companies in the process of liquidation, bankruptcy (Excepted Nonfinancial entities. iN. liquidation or. bankruptcy.)) constitutes passive income, (b) no more than 5% of EAG gross income received by members of EAG, which are foreign (non-American) financial institutions (with the exception of income received from transactions made between EAG members, or by any member of EAG, which is Certified conditionally participating foreign financial institution ( Certified deemed.- compliant. FFI); (c) Not more than 25% of the market price of assets available at EAG (with the exception of assets available from EAG members who are Start.- up. companies. or Excepted Nonfinancial entities. iN. liquidation or. bankruptcy., and assets obtained as a result of transactions between associated EAG members) are assets that bring passive income or are held to obtain passive income, and (d) any member of EAG, which is a foreign (non-American) financial institution, has the status of a participating foreign financial institution ( Participating FFI) either conditionally participating foreign financial institution ( Deemed.- compliant. FFI).

Undergroup company( Excepted inter. - affiliate. FFI ) - Foreign (non-American) company, which is a member of the Group of Participating Financial Institute ( Participating FFI) Compliant with all the criteria listed below: (a) the company does not conduct financial accounts, as such are defined by FATCA (with the exception of members of the members of their expanded affiliate group), (b) the company has no accounts (with the exception of a deposit account in the country in which the company leads activities to pay in such a country) at the tax agent and does not receive payments from a tax agent that is not a member of its expanded affiliate group, (c) the company does not pay payments with which according to FATCA, it is necessary to hold deduction, not members its expanded affiliate group (except for limited participating foreign financial institutions ( Limited FFI) and limited participating branches ( Limited branches.), and (d) the company did not assume obligations in the reporting section according to §1.1471-4 (d) (2) (ii) (c) the instructions of the US Treasury or the implementation of other actions as an agent for the purposes of chapter 4 of the US Tax Code of which -Lo financial institutions, including members of its expanded affiliate group.

Special company created in accordance with section 501 (c) of the US Tax Code( Section. 501( c. ) company ) - As a general rule, the American non-profit organization, freed from taxes (a list of such organizations can be found here: http://www.irs.gov/charities-&-non-profits/exempt-organizations-select-check).

Information for filling in paragraph 2.3 "Organization is a non-financial company ( NFFE ) "Forms of self-identification for purposes Fatca. .

Active non-financial company (Active NFFE) -The company is recognized as an active non-financial company for Fatca's goals if less than 50% of its total revenues for the previous year (calendar or tax) account for "passive" income, as well as less than 50% of the weighted average value of the company's assets (at the end of the quarter) assesets bringing "passive" income.

The value of the company's assets is determined on the basis of an accounting balance.

Dividends;

Interest;

Income equivalent to the percentage and income derived from the Pool of Insurance Contracts, provided that the amounts obtained are entirely or in part, on the return of the pool;

Rent and royalties (with the exception of rent and royalties obtained during active operating activities);

Annunts;

Excess proceeds over costs from the sale or share of property that makes an income specified in paragraphs above;

Excess proceeds over expenses from transactions with exchange goods (including futures, forwards and similar transactions) with the exception of transactions I) if such transactions are hedging and II) transactions with such goods are the company's main activity;

Exceeding income from foreign currency operations (positive exchange rate differences) over costs from foreign currency operations (negative coursework differences);

Contracts, the cost of which is tied to the basic asset (nominal), such as derivatives (for example, currency swap, percentage swap, options);

Redemption amount under an insurance contract (or loan amount provided by the insurance contract);

The amounts received by the insurance company at the expense of reserves for insurance activities and annuities.

Interest, dividends, rent or royalties derived from an interdependent person if this income can be attributed to the income of such an interdependent person other than passive income (that is, to active income).

If a foreign company regularly carries out dealerships, including property transactions, the conclusion of forward contracts, options or other similar tools:

Any income or increase (with the exception of interest and dividends) obtained as a result of the implementation of dealer activities (including hedging transactions);

In case the dealer performs operations with securities, any income received from these transactions during the regular activity of the dealer.

Passive non-financially company (Passive NFFE) -a foreign non-financial company that is not an active foreign non-financial company (Active NFFE).

Supervisory American Face (Substantial U.s. Owner) recognized:

In a foreign corporation - any specially specified US tax resident (Specified U.S. Person), which directly or indirectly owns more than 10% of the shares of this corporation (by the number of votes or cost)

In a foreign partnership - any specially specified tax resident of the United States (Specified U.S. Person), which directly or indirectly owns more than 10% of partnership shares

In the trust - any specially specified tax resident of the United States (Specified U.S. Person), considered as a co-owner of a trust in accordance with the provisions of Articles 671-679 USA, either directly or indirectly owning more than 10% of the trust shares (which is a beneficial owner of the trust).

The person will be considered a beneficiary owner of the share of the trust, if such a person has the right to get directly, indirectly or through the nominal recipient, mandatory payments from the trust (Mandatory Distributions), i.e. Payments, the size of which is determined on the basis of a trust agreement, as well as discretionary payments from the trust, i.e. Payments made at the discretion of the manager (DISCRETIONARY DISTIRUTION)

FATCA establishes special requirements for determining the share of ownership in the trust.

In relation to the trusts of 10%, the share will be determined as:

With regard to discretionary payments - if the existing market value (Fair Market Value) payments (money or property) exceeds 10% of the cost or all payments made in the current year or the cost of assets belonging to the end of the year, in which the payment is made;

With regard to mandatory payments - if the amount of payment exceeds 10% of the cost of the assets of the trust.

According to FATCA, a specially specified US tax resident is a controlling person in case:

The existing market value of funds or other property, which is distributed directly or indirectly from the trust in favor of a certain American person during the previous year, is not more than $ 5,000, and

In the event that a specially specified US resident (Specified U.S. Person) has the right to receive compulsory payments, the cost of such a person in the trust is $ 5,000 or less.

If all the beneficiaries of the trust are specially specified US tax residents, they should not be considered as controlled American persons.

If a foreign company is an investment company (Investment Entity), then all shareholders of the company excluding 10% of the share are analyzed.

The proportion of indirect ownership Determined by the following rules:

For cases of indirect ownership of shares (shares), i.e. If another company (partnership or trust) is owned by the shares (shares) of a foreign company, the shareholders (owners) of this other company will be considered the owners of a foreign company in proportion to their share in this other company (partnership or trust)

For cases of indirect ownership of shares in partnership or trust, i.e. If another company (partnership or trust) owns a partnership or trust shareholders, the shareholders (owners) of this other company will be considered the owners of a foreign company in proportion to their share in this other company (partnership or trust)

For cases of ownership through options, i.e. If a specific American person (Specified US Person) owns, directly or indirectly (indirect ownership is defined similarly to the previous point, the option to purchase shares of a foreign company (shares in partnership or trust), such a person will be considered the owner of the shares (shares) of the foreign company itself (partnership / Trust), in the proportion specified in the option

In determining the share of the face in a foreign corporation / partnership / Trust, it is necessary to take into account all the facts and circumstances that are important. At the same time, any tools that are created for concealing (artificial decline) share of possession should be ignored when analyzing in accordance with the procedure established for American accounts. To determine the part of the face in a foreign corporation / partnership / Trust, it is necessary to summarize its share with shares who own related persons (including spouses, family members of the owner of the shares).

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Costs, methods of promotion, forms After sales service consumers ... very Business gives an erroneous answer. This is due to poor understanding of issues and / or instructions by filling ... buying implies identifi common relevant roles ...

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Document

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Man by Principle instructions, by The principle of need, ... by attitude to yourself self forms behavior that were originally used by ... ability to integrate all identifi- kation With the attachments of libido ..., his world filled Fantomy, distorting ...

Consider changes in international legislation in terms of tax and financial exchange of information, in disclosing information on the accounts of individuals and legal entities that have assets abroad. In addition to this, imagine the information exchange model on the example of various jurisdictions.

Actual questions

05/12/2016 During the Forum, the Organization of Economic Cooperation and Development on Tax Administration in Beijing FTS Russia signed a multilateral agreement of the competent authorities on the automatic exchange of information on financial accounts. The first such exchange for Russia was scheduled for September 2018. This measure was provided for by the "main directions of the tax policy of the Russian Federation for 2016 and for the planning period of 2017 and 2018".

Multilateral Agreement of Competent Authorities (Multilateral Competent Authority Agreement, MCAA.) I. Unified Standard Reporting on the automatic exchange of information on financial accounts (Common Reporting Standard, CRS.) were developed on the basis of Art. 6 of the Convention on Mutual Administrative Assistance for Tax Affairs 1988 as amended. Protocol dated 05.27.2010 (hereinafter referred to - Convention 1988/2010).

What does Russian taxpayers mean, for non-residents who have accounts in Russia, signing MSSA? What kind of information and in what volume will fall under automatic exchange? Who, how and who will share such information with?

What countries will there be an automatic exchange?

According to Art. 6 Conventions 1988/2010 Automatic exchange procedures are determined by mutual agreement of two or more sides. In practice, the model of a multilateral agreement is taken as a basis, due to the countries to sign such an agreement, the individual bilateral agreements will no longer be signed by the countries.

FOR YOUR INFORMATION

On 06/28/2016 a multilateral agreement of the competent authorities signed 83 jurisdiction. Part of the countries pledged to implement the first (essentially test) automatic exchange of information in September 2017, part - in September 2018

In September 2017. Implement the first automatic exchange required Anguilla, Argentina, Barbados, Belgium, Bermuda, Bulgaria, British Virgin Islands, United Kingdom, Hungary, Germany, Guernsey, Gibraltar, Greenland, Greece, Denmark, Jersey, India, Ireland, Iceland, Spain, Italy, Kaymanov Islands, Cyprus, Colombia, Korea (South), Curaçao, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Montserrat, Netherlands, Niue, Norway, Isle of Man, Terks Islands and Caicos, Poland, Portugal, Romania, San Marino , Seychelles, Slovakia, Slovenia, Faroe Islands, Finland, France, Croatia, Czech Republic, Sweden, Estonia, South Africa.

September 2018. Conduct the first automatic exchange. Australia, Austria, Albania, Andorra, Antigua and Barbuda, Aruba, Belize, Ghana, Grenada, Israel, Indonesia, Canada, China, Costa Rica, Mauritius, Malaysia, Marshall Islands, Monaco, Nauru, New Zealand , Cook Islands, Russia, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and Grenadines, Samoa, Sint-Maarten, Chile, Switzerland, Japan.

What is the automatic information exchange?

Within the framework of automatic exchange, competent (usually tax) authorities of the involved jurisdiction will be:

receive from financial institutions his countries information about the accounts of individuals and legal entities - residents of other countries - MCAA members;
annually transfer this information to the competent authorities of these countries;
receive from competent authorities other countries - participants of MCAA information on the accounts of individuals and legal entities - residents of their country.

The exchange of information will be carried out between the competent bodies of the MCAA participating States (they received from accountable financial institutions in their countries) annually on an automatic basis in a unified electronic format.

Accountable financial institutions (Reporting Financial Institutions) are any financial institutions of jurisdiction involved in automatic exchange (banks, brokers, depositories, insurance and other companies), with the exception of government agencies, international organizations, central banks, state pension funds and other legal entities having a low level risk to be used in order to avoid taxes.

The exchange of information for a specific calendar year between the competent authorities of the respective countries can be carried out under the condition if:

mCAA data entered into force;
in their countries, there is an internal legislation that requires accountable financial institutions to report for such a calendar year in the scope and procedure provided for by the CRS standard.

NOTE

By signing MCAA, each state determines the month and the year of the exchange of information. Exchange must be carried out within 9 months after the end of the calendar year for which information is provided.

What information will be transmitted automatically?

Information, automatic exchange, includes (p. 2 art. 2 MCAA.):

the name of the individual, the name of the legal entity, the identification number of the taxpayer, the date and place of the birth of an individual, the address of the legal entity, as well as the name, TIN, the date and place of birth of individuals controlling legal entities (after the DUE Diligence procedure is the competent authorities in accordance with CRS standard;
bank account number (or similar by the equivalent function, if the account number is missing);
name and identification number of the accountable financial institution (bank);
cash balance on the end of the relevant calendar year or at the time of closing the account, if the account was closed this year;
by Cottam depot CUSTODIAL ACCOUNT):

The total amount of interest, dividends or other income received for assets placed in this account for the calendar year or another reporting period;

The overall revenue from the sale or repurchase of assets for which the accountable financial institution acted as a depositary, a broker, a nominal holder or an account holder agent;

according to deposit accounts (Depository Account) - the total amount of interest on the account for the calendar year or another reporting period;
for other types of accounts - The total amount received by the account holder for the calendar year or the other reporting period.

The exchange will be subject to information as newly opened accounts (starting from a specific date) and on existing accounts (already open to a specific date). These dates each state indicates an application to the MCAA subscribed.

Preparations for automatic exchange within CRS

Banks transfer information about accountable accounts to the tax authorities of their country in the calendar year following the year to which this information applies.

Before the start of automatic exchange, all banks (and other accountable financial institutions) of the MCAA participating countries will have to implement special due Diligence Procedures for existing and newly opened accounts for their customers (both individuals and legal entities). The goal is to categorize accounts for subsequent data transfer to the tax authorities and the replenishment of the missing information.

Information Banks will detect information based on:

existing information about the client obtained as a result of the AML / KYC procedures taken by this Bank ("Know Your Client" procedures);
information separately inserted by the client itself (Self-Certification).

Due Diligence existing legal accounts

Speaking about the account holders, under the word "entity", the CRS standard understands not only actually legal entities (corporations), but also other education, including partnerships, trusts and funds.

CRS displays existing legal entities from the automatic exchange (Preexisting Entity Accounts), which aggregated does not exceed $ 250,000. USA December 31 relevant year. That is, identification, reconciliation and transmission of information on such accounts will not be implemented.

Accountal bills (Reportable Accounts), that is, accounts whose information is subject to transmission is accounts whose holders are:

one or more accountable person (Reportable Person), that is, a physical or legal person - a resident of jurisdiction involved in automatic exchange;
(or) passive non-financially organization (Passive NFE) (hereinafter referred to as a passive NFO), one or more controlling person of which is a resident of the involved jurisdiction.

FOR YOUR INFORMATION

The rules for determining the tax residences adopted in each of the MCAA participating countries can be found on the OECD automatic exchange portal in the "Rules Governing Tax Residence" section.

Active and passive organizations for information exchange purposes

Passive NFO is a non-financial organization that is not active.

Active NFO - a non-financial organization, the passive income of which for the past calendar year amounted to less than 50%, and the volume of assets generating passive income or intended for their preparation amounted to less than 50% over the same period.

The CRS standard provides for a number of other features, everyone (any) of which will also allow the organization to an active NFO:

Shares of NFOs regularly appeal on organized securities markets

NFO is a state or international organization, a central bank or an organization that has completely owned by any of the organizations mentioned

Holding non-financial organizations (under certain conditions)

NFO does not yet lead activities and does not have the history of activities, but invests in assets with the intention to conduct non-financial activities

NFO is in the process of liquidation or reorganization in order to continue or resume non-financial activities.

The non-financial organization carries out financing or hedging transactions with related non-financial organizations and does not provide financing services to other persons

Nefined Organization is a non-profit organization (responding to a number of signs)

The meaning of the term " passive income"It should be determined on the basis of the legislation of each involved jurisdiction. According to the comment to the VIII section of the CRS standard (p. 126) under passive income is usually understood as part of the overall income, including:

dividends;
interest;
revenues similar to interest;
rental payments and royalties;
annunts;
excess of income over losses as a result of the sale or exchange of financial assets generating passive income;
excess of income over losses from transactions with any financial assets (including futures, forward, optional and similar transactions);
excess of income over losses from transactions with foreign currency;
net income from swap transactions;
amounts obtained under the contracts of cumulative life insurance.

Accountable financial institution(bank) must carry out the following DUE DILIGENCE procedures (collecting or updating information about the client):

1) determine whether the organization is (Entity) accountable person. To do this, the Bank checks the available information collected within the AML / KYC procedures to determine tax Residency Account holder.

If, according to the available information, the account holder is the tax resident of the jurisdiction of the jurisdiction, this account will be considered as reportable (that is, the information about it will have to transfer the tax authority of its country);

2) determine whether the organization is passive NFO with one or more controlled accountable person. To do this, install:

whether the account holder is a passive NFO. The bank surchates the client to establish its status (except when the bank has information that allows us to make a reasonable conclusion that the account holder is active NFO);
controlling persons of the account holder. To this end, the Bank relies on the information obtained by him earlier within the framework of AML / KYC procedures;
is a controlling person accountable. Here, the bank also relies on the information obtained by him earlier in the framework of AML / KYC procedures, if the aggregated balance of the existing account of the Passive NFO does not exceed $ 1,000,000 (or specially questionnaires the account holder or a controlling person in order to clarify the jurisdiction, which such a controller is a tax resident).

Speaking O. controlling lyingThe CRS standard refers to the interpretation of the term "beneficial owner", which is given in the recommendations of FATF (a group of financial measures to combat money laundering). Beneficiary owner - This is an individual (person), which ultimately owns the client or controls it, and / or an individual, in whose interest is made a deal.

NOTE

If any of the controlling persons passive NFO is an accountable person, then the exchange will be subject to not only information about the account of the client, but also the person controlling it (client).

Due Diligence existing invoices of individuals

To determine the customer belonging to the participating jurisdiction, the Bank on the basis of available information establishes tax Residency This client.

CRS Standard shares existing personal accounts into two groups:

low value accounts (Lower Value Account), the aggregated balance at which as of December 31 of the reporting year does not exceed $ 1,000,000;
higher Value Account (Higher Value Account), the aggregated residue on which exceeds $ 1,000,000 as of December 31 of the reporting year or on December 31 of any subsequent year. Collection of information about this category of accounts (and accordingly, the exchange of information on them) will be carried out in priority.

Important detail: An automatic exchange will be subject to information on all invoices in banks of participating countries, since CRS does not establish any threshold amount of balance for such accounts, the unbreak of which will derive an account from under automatic exchange.

Dates of Due Diligence for the first stage of participating countries

Banks of countries starting to automatic exchange in 2017. (for example, Cyprus, Latvia, Estonia), should:

exercise Due Diligence for the exchange goals (in particular, to establish the client's tax residence, the active / passive nature of the legal entity, etc.) in relation to new customers (individuals and legal entities - non-residents of the Bank of the Bank) before establishing business relations with them - starting from 01/01/2016;
complete Due Diligence existing customers — individuals (non-residents of the Bank of the Bank), the balance of which exceeds $ 1,000,000, until December 31, 2016;
complete Due Diligence all existing customers (individuals and legal entities - non-residents of the country of the Bank) - until December 31, 2017.

Details Due Diligence for the second stage of participating countries

Banks of countries starting to automatically exchange in 2018 (for example, Russia, Switzerland, Austria), should:

exercise Due Diligence for the exchange goals (in particular, to establish tax residency, the active / passive nature of the legal entity, etc.) in relation new customers (individuals and legal entities - non-residents of the Bank of the Bank) - from 01/01/2017;
complete Due Diligence existing customers — individuals (non-residents of the country of the bank), the balance on the accounts of which exceeds $ 1,000,000, - until December 31, 2017;
complete Due Diligence all existing customers (individuals and legal entities - non-residents of the Bank of the Bank) - until December 31, 2018.

E. B. Nesterova, General Director of Helios Trust Soluschns LLC

The material is published in part. It can be fully read in the journal

The closer time, the stronger the heat around the automatic information exchange system (AOO), which will be launched next year. The approach to the deadlines for the beginning of the first reporting, it also became a reason for the first business delights, which still hoped to keep melting confidentiality, is ready to believe in any rumors and unreal care schemes from the Care.

Let's consider and look through the shelves to finally understand who will affect the first wave of mass deufforization and the declassification of the beneficiaries.

In fact, the process of collecting information has already been launched. From January 1, 2016, 56 countries, including 10 G20 members, and all EU countries began a massive collection of information to prepare for the coming exchange of information. These countries include: British Virgin Islands, Cayman Islands, Cyprus, Estonia, Gibraltar, Guernsey, Hungary, Ireland, Isle of Man, Jersey, Latvia, Lithuania, Liechtenstein, Luxembourg, Malta, Netherlands, Seychelles, United Kingdom, etc.

All these countries, and more precisely, credit and financial institutions launched a collection of information on the tax residence of the beneficiaries of financial accounts. Further, this information will be transferred to the tax administration of the country's registration of a financial institution, which, on the basis of AOI, will give data to the Partner's relevant country, the tax reside of which is the beneficiary.

On the com, the information will be transferred in the framework of the AOI?

It was decided to classify all customers on active and passive. This refers to corporate clients who have accounts to the company. Banks and financial institutions will identify whether the company is active or passive for the purpose of AOI.

Passive NFE is a passive non-financial company:

Non-financial organization that does not meet the features of Active NFE;
An investment company that is not an organization from the participating jurisdiction of the AOI, and which is managing another structure, which is a deposit institution, a depository institution, an investment organization, a specialized insurance company;

Active NFE is an active non-financial company:

50% gross income \u003d passive income and more than 50% of assets bring passive income;
shares are regularly listed on the stock exchange;
public institution, or international organization;
the organization is the ownership of issued shares of subsidiaries who are not financial. institutions, and providing them with financing and other services;
the organization, from the date of the foundation of which not passed 24 months, and which has not yet begun maintaining the host. Activities, but invests in assets with the intention to start maintaining a host. Activities that are not working Fin. institutions;
the organization was not Fin. The establishment in the last 5 years and is in the liquidation of its assets or reorganization in order to resume the activities that are not activities of Fin. institutions;
the organization is mainly engaged in financing and hedging transactions with or in the interests of related organizations that are not financial. institutions and the organization does not provide financing or hedging services to other persons;
the organization is established and operates exclusively in religious, charitable, etc. purposes (eliminated the presence of property interest in income or assets, or the distribution of income or assets or their use to the benefit of a private person)

Providing data to tax authorities

Financial institutions will have to provide complete information on all its customers, both active and passive, but the first wave of exchange will contain the following information:

On individuals it will be:
Name and surname
Address in the country of residence
Taxpayer number
Date of Birth

On non-financial companies – NFE:
Name
Address in the country of residence
Taxpayer number
Account number (s) accounting of financial assets
The cost of financial assets / balance of account (-th) accounting at the end of the reporting period
Gross amounts of revenues from relevant financial assets paid during the reporting period
Gross amounts of income from the sale of relevant financial assets paid during the reporting period

On passive non-financial companies – NFE with beneficiaries from participating jurisdictions

Name
Address in the country of residence
Taxpayer number
Account number (s) accounting of financial assets
The cost of financial assets / balance of account (-th) accounting at the end of the reporting period
Gross amounts of revenues from relevant financial assets paid during the reporting period
Gross amounts of income from the sale of relevant financial assets paid during the reporting period

About the beneficiary:

name and surname
address in the country of residence
taxpayer number
date of Birth

Reporting deadlines and first information transfer:

Customers	Calibration date	First report
Existing on December 31, 2015, Customers-Piz. Persons with a total financial assets ≥ $ 1 million.	until December 31, 2016	2017
Existing on December 31, 2015, Customers-Piz. Persons with a total financial assets< $ 1 млн.	until December 31, 2017
Existing on December 31, 2015. Clients-JUR. Persons	until December 31, 2017	2017 (if the information was held in 2016) or 2018 (information was held in 2017)
New customers from 01/01/2016 (Piz. And Jur. Persons)	before establishing business relationships	2017 and subsequent years for the previous reporting year

Under the category of passive non-financial companies, all companies fall that are not tax residents in any jurisdiction. That's exactly here it begins, the so-called loophole, for allegedly departing from AOI.

In order to determine whether the company is a taxpayer or not, the Bank may require you a certain package of documents confirming this fact:

registration certificate
tax registration certificate
tax Resident Certificate (Tax Residency Certificate International Sample)
another confirmation of tax registration with the taxpayer number (if no number should be explanation).

Under the category of countries in which your company is not a tax payer, in fact, all countries with low taxation are falling, or its absence. All classical offshore companies that are beneficial for work are not tax residents, therefore, the exchange of information is obligatory.

But there are attractive jurisdictions that recognize their companies by tax residents of the country: Malta, Hong Kong, Singapore, Switzerland, United Kingdom, etc.

Thus, companies that actively fulfill the criteria of active non-financial companies (Active NFE) - will not be as exchanged information. And it is quite logical, as the company data cannot but pay taxes in the country of their registration.

To date, owners of companies in jurisdictions, where their companies are officially tax residents and country taxpayers, information will not exchange. However, this does not mean that according to a personal account of the client, the information will not be transferred to the appropriate tax authorities of the beneficiary tax residency.

It is important to understand that we have repeatedly tried to convey to the readers of internationalwealth.info, the future for organizing business in a country with flexible taxation - Midshor. This will reduce the tax burden for the company, and as practice shows, at least for a while to protect your business from AOI.

But to protect yourself from Aoi, as a private person you cannot, and all CRS-based countries will exchange data on personal accounts of their customers. That, undoubtedly threatens the fact that your beneficiary possession of a foreign company can also be declassified, even if you own a company in a country that recognizes its companies to tax residents of the country, and does not exchange this information. If you received or receive payments within your business on your personal account.

What to do to protect yourself from aoa?

This question is very scrupulous. If we are talking about a business level, how already mentioned above - the business should be opened in the country recognizing its companies with tax residents. This option may not always be the most attractive, since the status of the tax resident, for the company means a certain level of taxation. Which is not always lower than in the country of the Tax Residence of the Beneficiary.

For the beneficiary to get away from the automatic exchange of information, it is necessary to change its tax of tax residency - this will reduce the tax base. Or finding a country in which you can discover an account for yourself, and which is not a country party. But here are their nuances and difficulties.

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In the section on the question, give the definition of the term "non-financial enterprises" (not sure - do not answer) as the author Vladimir Minakov The best answer is Very simple.
According to the National Accounts system, all enterprises are divided into financial and non-financial. Financials are banks, investment companies, etc. Now there is no SNA at hand. Nefinasy - all others, but mainly meaning industrial enterprises. Look in sleep very much.
Further is more difficult.

Answer from User deleted[guru]
Public movement - consisting of participants and non-membership mass public association, pursuing social, political and other socially useful goals supported by the participants of the social movement.
Public Association is a voluntary, self-governing, non-profit formation created on the initiative of citizens who united on the basis of the generality of interests for the implementation of the general objectives specified in the Charter of the Public Association.
A non-profit organization is an organization that has no extraction of profit as the main goal of its activities and not distributing the profit between participants.
A private institution is a non-profit organization created by the owner (citizen or legal entity) for the implementation of management, socio-cultural or other functions of a non-commercial nature.
The fund - not members of the organization, is created by citizens and / or legal entities in order to form property based on voluntary contributions and other, not prohibited by the law of income for the use of this property for social, charitable, cultural, educational and other socially useful goals.
Housing Association - the form of unification of homeowners for joint management and ensuring the operation of the real estate complex in the condominium, possession, use, and the limits established by the legislation of the Russian Federation.
They are all in law - non-financial, although they live by attracting finances ...
Glorious, as in the tank - with such laws ...

Answer from User deleted[guru]
Well, I will not answer

Institutional Unit on Wikipedia
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