The Ministry of Finance states that, financial institutions shall report Common Reporting Standard (CRS) information from June 1 to June 30, 2021. It is noteworthy that there are three differences regarding 2021 reporting from the 2020 one. They are: financial institutions should start reporting financial accounts held or controlled by the U.K. tax residents, should report preexisting accounts of all kinds, and should use the new version of the CRS XML Schema to create their reporting CRS files.
The Ministry of Finance announced its updated list of “Reportable Jurisdictions” on April 16, 2021 with which the R.O.C. (Taiwan) will exercise automatic exchange of financial account information. Accordingly, financial institutions are required to report financial accounts held or controlled by Australian, Japanese, and the U.K. (newly added) tax residents. Meanwhile, according to the “Regulations Governing the Implementation of the Common Standard on Reporting and Due Diligence for Financial Institutions,” financial institutions should have completed the due diligence procedures for Preexisting High Value Individual Accounts by December 31, 2019. As for Preexisting Lower Value Individual Accounts and Preexisting Entity Accounts, the due diligence procedures should have been completed by December 31, 2020. Relevant account information shall be reported by June 30 of the year following the completion of due diligence. In other words, financial institutions should report relevant preexisting accounts of all kinds this year, and therefore the amount of the reporting data is projected to increase this June.
The Ministry of Finance reminds financial institutions to use the 2.0 version of the CRS XML Schema, which can be downloaded from the CRS Financial Institution Portal (https://www.cfi.mof.gov.tw/), to create the compliant CRS XML reporting files. To date, there have been 412 financial institutions or their reporting agencies/agents completing their reporting test successfully. The Ministry of Finance calls on financial institutions to make good use of the remaining “reporting testing period,” which is from March 1 to April 30 each year, to carry out their reporting tests, so as to facilitate their online reporting smoothly in June this year.
Contact person: Ms. Yu- Hsuan Wang, Section Chief.
Contact Number: (02)2322-8183