The Ministry of Finance stated that, in order to assist Reporting Financial Institutions in compliance with the Regulations, a Notice was issued in accordance with Article 51 of the Regulations on November 8, 2019. This Notice stipulates that the reporting period for the total gross proceeds from the sale or redemption of Financial Assets paid or credited to a Custodial Account during a calendar year with respect to which the Reporting Financial Institution acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder (hereinafter referred to as “total gross proceeds from sale or redemption”) is from June 1 to June 30 of each calendar year from 2021.
The Ministry of Finance explained that, after a Reporting Financial Institution follows the Regulations and completes due diligence procedures on financial accounts in 2019, it shall report the information of each “reportable account” and “undocumented account” to the tax collection authority in June of each year from 2020. With respect to the reporting period for the total gross proceeds from sale or redemption, considering that the Organisation for Economic Co-operation and Development (OECD) recommends that jurisdictions may gradually introduce the reporting of such gross proceeds, and some jurisdictions in practice deferred the reporting period of those gross proceeds, the Ministry of Finance has determined that the reporting period for the total gross proceeds from sale or redemption begins one year later than the other information, which enables the Reporting Financial Institutions to have sufficient time for response and preparation, and improves the integrity and correctness of the reporting information.
This Notice alleviates the burden on the Reporting Financial Institutions to prepare reportable information and conforms to international practice. The Ministry of Finance will continue to pay attention to the implementation of the Common Reporting Standard on Reporting and Due Diligence for Financial Account Information (CRS) in the global arena and assist our Reporting Financial Institutions in performing due diligence and reporting obligations, so as to follow the latest international trend and development.
Contact person: Ms. Yu-Hsuan Wang, Section Chief.
Contact Number: (02)2322-8183