On January 1st 2016, a decree (No.447/2015) came into effect that Cyprus needs to introduce a system of common reporting standards (CRS) of the Organization for Economic Cooperation and Development (OECD)until 2017. More than 96 jurisdictions, along with Cyprus, adopted CRS. The system is built on the basis of existing legislation on the exchange of information, such as FATCA (US law on tax reporting foreign accounts) and its aim is to combat offshore tax evasion and obliges financial institutions to determine the tax residency of the owners’ accounts. CRS refers to both natural and legal persons.
• According to the CRS, financial institutions are required to identify clients who are tax resident in foreign jurisdictions, i.e. a country where the accounts are and where their products are, and to provide certain information to the national tax authority.
• All financial institutions of Cyprus should determine the reporting account on the basis of the information gathered (self-certification process) and, respectively, to represent them to the tax authority of Cyprus. Tax authority of Cyprus, in turn, will make the exchange of information with tax authorities of the reporting jurisdictions.
• Collection of information will especially apply to:
individuals who open a new account after January 1, 2016
Some owners of existing accounts, i.e., Accounts that existed on 31 December 2015
The information will contain the jurisdiction of tax residency and tax identification number, as well as, where applicable, self-certification form.
You can find detailed information on the following website: