Automatic Exchange of Information (AEOI) legislation is constantly evolving worldwide as the standard is rolled out around the world. The Sovos research team continually monitors new regulations and updates across the globe and publishes them in our Taxport Compass tool. Here are some important changes that occurred in recent weeks:
Hong Kong Updates CRS XML User Guide
Hong Kong’s Inland Revenue Department recently released a final version of its Financial Information Return XML Schema User Guide for CRS reporting. The User Guide explains that Hong Kong’s XML data schema is based off of the OECD’s. The User Guide contains explanations for all the fields and provides diagrams to help explain the XML’s overall structure. The Guide also contains Examples of Errors in Appendix B.
Belgium Publishes FATCA & CRS Reporting Instructions
Belgium has released FATCA Corrections guidance and specifications (Processus de Correction). The guidance provides descriptions of the various correction types, and it contains instructions and examples of Corrected, Void, New, and Amended Data XML transmittals. Belgium also released new publications regarding FATCA Business Rules and CRS Reporting by Belgian financial institutions, detailing various reporting scenarios under the new CRS reporting regime. The scenarios provide helpful guidance on how to properly format XML returns based on different account holder situations.
Guernsey Releases its List of Reportable Jurisdictions
Guernsey issued Bulletin 2017/1, containing the list of reportable jurisdictions in advance of June reporting. In addition, the document has a provisional list for 2017 Due Diligence which may be updated by the end of the year. Finally, there is a list of 2017 Participating Jurisdictions, which is subject to review no later than July 31.
Cayman Islands Publishes AEOI News and Updates
The Cayman Islands Department for International Tax Cooperation has published a newsletter with updates for the 2017 AEOI filing season, including:
- AEOI Portal Accessibility: The Cayman Islands AEOI Portal is expected to be available online to financial institutions by mid-to-late March. However, the portal will likely not be ready for CRS functionality until mid-to-late April. The portal is currently undergoing upgrades to reflect the changes in FATCA XML Schema v2.0.
- Reporting Notifications: The AEOI Portal Team is currently developing a solution that will allow it to complete the required remediation in response to an IRS or OECD jurisdiction notification.
- Tax Year 2016 FATCA Reporting: All FATCA submissions for Tax Year 2016 must follow the FATCA XML Schema v2.0 format. Any Tax Year 2016 returns that were submitted using the former schema must be resubmitted in the new format.
- Common Reporting Standard: The AEOI Portal will be updated to accept CRS Notifications. Filers should also be on the lookout for new guidance notes that are expected to be published sometime this month.
- AEOI Portal User Guide: A revised User Guide for the AEOI Portal will be made available prior to it going live later this month.
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