Tax Transparency and Exchange of Information
Financial Institutions face increasing tax regulatory reporting constraints, including the obligation to file automatic exchange of information (e.g. FATCA, CRS) reports and also information reporting requirements resulting from the US treaty withholding tax relief regime (Qualified Intermediary). Furthermore, those regulations are technically complex and likely to impact the whole value chain and most policies and procedures of your organisation.
Implementing a reporting system within your company can be a time-consuming and expensive process, especially with regards to the complexity and regular changes of the technical aspects defining the format of the FATCA, CRS and QI reports. But even understanding the regulatory framework and adapting the internal processes and controls accordingly also requires resources and expert knowledge.
Our Tax Information Reporting (TIR) multi-disciplinary team delivers tax consulting, risk, compliance and quality reviews and submits your reports on time to the relevant tax authority.
Further to the financial and banking crisis, the fight against tax shortfalls and tax evasion has become a priority for all the governments around the world. We have entered into a new era of tax transparency. Regulations are increasing rapidly with FATCA, CRS and Country-by-country reporting for instance.
2017 is a milestone for the CRS implementation and Luxembourg is actively participating as an early adopter country. FATCA regulations have been published on 24 July 2015 and CRS law has been voted on 18 December 2015 with a first CRS reporting due on 30 June 2017. Those changes in the Luxembourg tax environment are translated into opportunities: Luxembourg continues to attract and is clearly positioned as a preferred location within the EU market.
Thanks to the pro-active approach taken by the Luxembourg government in turning international political intentions into reality for more transparency and tax compliance, the country is now fully compliant with the new OECD rules, which set global standards to ensure the balance between transparency, compliance and the client’s needs for a high level of privacy protection.
PwC Luxembourg has put into place a dedicated workforce to assist clients in a regularisation process in their residence country.
This workforce is currently in contact with more than 15 countries within the PwC network to help you and your clients disclosing voluntarily their assets and income.
Please contact us directly if you want to get a first assessment of the process in place in your residence country.
The quality of our services and the protection of our clients’ interest is core for our business. Therefore, your comments are very important for us, irrespective of whether they are positive or not, and we encourage you to share them with us. In this respect, the management of customer complaints is not only a regulatory requirement but also very important to us as part of the client experience.
Tax Partner, PwC Luxembourg
Tel: +352 49 48 48 3118
Tel: +352 49 48 48 2026
Tel: +352 49 48 48 3177
Managing director of PwC Tax Information reporting Sàrl, PwC Luxembourg
Tel: +352 49 48 48 4031