The exchange of account and financial information across borders with the objective of tax transparency is the new reality. Several regimes that are currently in effect or are scheduled for implementation in the near or mid-term future affect how financial institutions globally do business.
US Tax Transparency regimes (QI, FATCA, 871(m))
Non-US financial institutions need to comply with due diligence, withholding, reporting and compliance obligations imposed by various US Tax Transparency regimes. Those regimes primarily aim at disclosing US taxpayers holding offshore investments (FATCA) and ensuring that the correct withholding rate is applied on direct and indirect investments in US securities (QI and 871(m)).
International Tax Transparency regimes (AEOI/CRS, DAC6/MDR)
International Tax Transparency regimes require the identification and reporting of reportable offshore financial accounts (AEOI/CRS) as well as potentially aggressive cross-border tax-planning arrangements (DAC6/MDR). Once financial institutions or intermediaries report relevant accounts or arrangements to their local tax authorities, the local tax authorities will automatically exchange the data with the tax authorities in the taxpayers’ jurisdiction of tax residence with the goal to increase tax transparency and compliance globally.
Deloitte Tax Transparency Products and Services
Deloitte offers a range of products and services to support affected institutions in complying with obligations under relevant US and International Tax Transparency regimes. Our range encompasses online knowledge management and training solutions, standard products and presentations/workshops, bespoke advisory services, external reviews as well as remediation support.