Switzerland CRS & FATCA Reporting Guide

Emelie Mahler
Emelie Mahler
Senior Manager, Head of Regulatory
Switzerland CRS & FATCA Reporting Guide

Stay up to date with all CRS and FATCA reporting requirements in Switzerland.

Law, tax, and compliance professionals can stay up to date with all of the CRS (Common Reporting Standard) and FATCA (Foreign Account Tax Compliance Act) reporting requirements worldwide thanks to KENDRIS. In this article, we will take into consideration the requirements for Switzerland.

 

Applicable Regulations

Switzerland has implemented the CRS into domestic law in 2017 by enacting the Federal Act on the International Automatic Exchange of Information in Tax Matters (AEOIA) which should be read together with the Swiss CRS guidance. Furthermore, an overview of Switzerland’s active exchange relationships is available here

Switzerland and the United States of America have signed an agreement (IGA) to improve international tax compliance and to implement FATCA. Since Switzerland is a Model 2 jurisdiction, financial institutions are required to report specified information about US accounts directly to the IRS. The Swiss FATCA Law further specifies Swiss FFI’s reporting obligations according to the IGA.

The applicable CRS and FATCA regulations set out the due diligence and reporting requirements for Swiss financial institutions but also the penalties for non-compliance and certain exemptions for the exchange of information.

 

CRS Nil Returns 

Special attention should be paid to the fact that CRS nil returns are mandatory for all Swiss FIs. Hence, all FIs are required to submit a report even if they do not have any reportable accounts.

 

Swiss AEOI Portal

All Swiss FIs are obliged to register at the Swiss AEOI portal by 31 December in the year the entity was classified as FI for the first time. Reports can be submitted manually or by uploading an encrypted XML-file. Further, it is possible to file consolidated CRS reports relating to multiple jurisdictions. Technical guidance for CRS XML schemes 1.0 and 2.0 can be found here

 

Policies and procedures

It is not mandatory to have policies and procedures relating to the above-mentioned due diligence and reporting requirements. However, authorized persons are allowed to examine any business documents relating to compliance with the relevant regulations. Therefore, it is generally recommended to define and implement policies and procedures which are in line with the legal due diligence and reporting requirements.

 

Reporting Period and Deadline

Please note that reporting on calendar year basis is not required for CRS but it is mandatory for FATCA. For CRS reports, any suitable reporting period can be applied.

The deadline for submitting CRS returns in Switzerland is 30 June in the year following the year to which the return relates. FATCA reports shall be submitted to the IRS by 31 March.

Have you missed this year's registration deadline or are you required to file corrections? No need to worry, we can assist you with your filings or corrections. Our experts can also support you in implementing appropriate CRS/FATCA compliance programs or registering FIs. Learn more about our CRS and FATCA services.

 

Useful KENDRIS links