The act implementing CRS/Euro-FATCA has been adopted by the Sejm

News duties for financial institutions as of 1 May 2017

Taxes in finance: FATCA, Euro-FATCA, CRS 1/2017

On 10 February 2017, the Sejm adopted the Act on Exchange of Tax Information with Other Countries, which implements two tax information exchange regimes, namely Euro-FATCA and CRS.

Under the said act, Polish financial institutions are required to implement, as of 1 May 2017, due diligence and reporting procedures, keep a record of the activities carried out as part of their due diligence procedures as well as retaining documents required in relation to their due diligence procedures.

The compliance processes relating to Euro-FATCA will not be wholly consistent with the FATCA ones.

While working on the implementation of Euro-FATCA one should remember that the requirements thereunder differ considerably from those imposed by FATCA, both as regards client identification and verification procedures and the formal requirements (keeping a record of activities).

The subject matter scope of the regulation also differs from FATCA in some respects. Situations may occur where the entities required to implement FATCA compliance processes are released from the corresponding obligations under Euro-FATCA and vice versa.

Consequently, each entity should analyze the extent to which it is affected by the new regulations on a case-by-case basis.

Euro-FATCA changes tax regulations

The Euro-FATCA Act amends the key legal acts governing the exchange of tax information. The implementation of the Euro-FATCA requirements should be accompanied by ensuring compliance, in particular, with the amended FATCA Act and the PIT Act.

The act has been brought before the Senate.

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