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The CRS (Common Reporting Standard) is a global reporting standard aimed at addressing the issue of offshore tax evasion by disclosing financial accounts held by non-residents and automatically providing governments with that information. Like all other financial institutions, Nordea is obliged to collect data about new customers starting from 1 January 2016. The first reporting procedure to Baltic tax authorities will take place in the summer of 2017.
What is the CRS?
Cooperation between tax administrations is critical in the fight against tax evasion and in protecting the integrity of tax systems. A key aspect of this cooperation is the exchange of information. Under the CRS, jurisdictions like State Revenue Service obtain financial information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis.
The financial information to be reported regarding reportable accounts includes all types of investment income (including interest, dividends, income from certain insurance contracts and other similar types of income), as well as account balances and sales proceeds from financial assets.
How will customers in Latvia be affected?
Starting 1 January, Nordea will ask all new customers to provide the bank with a list of countries where customers pay taxes and their taxpayer identification number (TIN).
Within the next two years, Nordea will contact existing customers who may be reportable under the CRS.
Please be advised that Nordea cannot provide any CRS-related tax advice. If you have any tax-related questions, please contact a tax specialist or visit http://www.oecd.org/tax/.