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CRS

Common Reporting Standard (CRS).

Since 1st January 2016.

 
What is Common Reporting Standard (CRS)?

The Common Reporting Standard (CRS) has been developed within the scope of the Global Standard for Automatic Exchange of Financial Account Information – model presented by the OECD – Organisation for Economic Co-operation and Development, with the purpose of fighting worldwide tax fraud and evasion of property and income from investments outside the Customers’ country of residence.

Portugal was one of the first countries to sign the Multilateral Convention formalised by the OECD, later also formalised by the EU through the Community Directive 2014/10/EU of the European Council that obligates the State-Members to implement it in their respective national laws, this way formalising the obligation to exchange financial account information for tax purposes among Fiscal Authorities.

This regime is in force since 01 st January 2016 and is applicable to all financial institutions of the signatory countries.

This way, from 2017 onwards and regarding fiscal year 2016, Banco Best, as all banks and financial institutions with headquarters in Portugal, must identify and report to the Portuguese fiscal authorities all tax information on their Customers classified as residents for fiscal purposes in any of the other CRS signatory countries.

 

The implementation of the European Directive in the Portuguese law obligates the Financial Institutions to comply with the established principles. Banco Best adopted this regime on 01 st January 2016, date in which CRS was put into force in all signatory countries.

In compliance with CRS, Banco Best Customers holders of financial accounts that have one of the following characteristics:

  • Individuals with fiscal address in any CRS signatory country.
  • Non financial entities (active or passive) with fiscal address in any CRS signatory country.
  • Passive Non financial entities with fiscal address in a CRS non-signatory country but with at least one of its effective beneficiaries with fiscal address in one CRS signatory country.

The following Customers are excluded from report within CRS scope:

  • Individuals or Passive Non Financial entities with fiscal residence in a CRS non-signatory country.
  • Passive Non financial entities with fiscal address in a CRS non-signatory country and without effective beneficiaries with fiscal address in one CRS signatory country.

Although with fiscal address in a CRS signatory country, the following entities are excluded from CRS scope:

  • Listed entities or entities related to them.
  • Government entities.
  • International organisations.
  • Central Banks.
  • Financial Institutions.
  • Other entities with low risk of tax evasion.

Note: "CRS signatory country" means all countries that have signed the regime except that of the Financial Institution that is reporting the information.

The CRS will have little impact on Banco Best Customers since most of those with a fiscal address outside Portugal were already being reported within the Savings Directive scope (revoked by the CRS regime, with a wider information scope to be reported).

Banco Best has already adjusted its account opening procedures so as to collect the necessary information in order to duly characterize its Customers with fiscal address outside Portugal.

Banco Best will also review all the information in its database in order to identify the Customers eligible of report within the CRS scope.