• What is CRS?

    CRS (Common Reporting Standard) is modeled upon FATCA a standard of international tax information exchange developed by OECD as adopted by ca. 100 countries worldwide including Poland and other European Union member states. CRS was implemented into the Polish legal system by the Act of 9 March 2017 on exchange of tax information with other countries (the CRS Act) with effect from 1 May 2017.

    The CRS Act imposed, upon financial institutions (including, inter alia, banks, brokerage houses, investment funds), duties connected with identification of tax residence of their clients (both consumers and entrepreneurs) and accounts, maintained in their favour, subject to reporting duty to tax authorities (due diligence procedures and reporting duties).

  • The CRS Act obliged financial institutions (including Bank Millennium S.A.) to:

    • Apply due diligence procedures in the area of verification of financial accounts in the meaning of the said Act and subject to reporting to tax authorities;
    • Apply specific reporting procedures (format of CRS-1 information on reported and not documented accounts delivered by financial institutions is published on the Ministry of Finance web site;
    • Register actions undertaken within performance of the above duties;
    • Gather documentation linked with the above process including, primarily, as follows: declarations of tax residence of account holders and controlling persons, official documents delivered (including, inter alia, tax residence certificates, identification documents and business entity registration documents).

    The CRS Act also imposed duties upon Clients including, inter alia, as follows:

    • Account holders and in case of certain entities also persons controlling them who are beneficial owners relative to such entities have the duty to submit tax residence declarations and present financial institutions with documents referred to in the CRS Act when, inter alia, opening current accounts, term deposits, securities accounts.
    • Account holders have the duty to inform financial institution on any change of circumstances having impact upon his/her tax residence (e.g. change of domicile address, country) within 30 days from such change and submit, to the financial institution, declaration updated accordingly within 30 days from such change.

    It is necessary to underscore that according to the CRS Act, financial institutions in Poland (including Bank Millennium S.A.) have the duty to deliver, to the tax authorities, client account information in case they are not able to identify country of tax residence (the so-called not documented accounts).

  • In cases of individuals including sole traders, professionals and farmers tax residence is determined on the basis of, as follows:

    • Country of domicile (other than Poland and the U.S., the residents of which are subject to FATCA regime),
    • Country of the address for correspondence (other than Poland and the U.S.),
    • Foreign telephone number as provided by the Client (except for telephone number in the U.S.),
    • Domicile address of the proxy established to the account (in case of an address other than Poland and the U.S.)

    With respect to business entities:

    • Place where business has obtained legal capacity (other than Poland and the U.S.),
    • Place of registration (other than Poland and the U.S.),
    • Address for correspondence (other than Poland and the U.S.),
    • Head office location (other than Poland and the U.S.),
    • Country of controlling persons/beneficiary owners (other than Poland and the U.S.).

    Meeting requirements of tax residence in countries other than Poland and the U.S. will cause the account to be deemed to be a reported account to tax authorities in CRS-1 Information.

    The scope of information delivered to tax authorities in the CRS-1 Information and due date for delivery thereof by financial institutions is provided for in art. 34-36 of the CRS Act. According to the said provisions the scope of data to be reported incorporates, as follows:

    • Name and surname, date and place of birth in case of an individual, name, address, country or countries of residence and NIP (taxpayer identification numer) of a reported person – account holder, and in case of account held by entity identified as an entity controlled by at least one controlling person who is a reported person – name, address, country or countries of residence, entity’s NIP, and the name and surname, address, country or countries of residence, NIP and date and place of birth of such controlling person;
    • Account number or its functional equivalent in case there is no such number;
    • Account balance or value and in case of monetary insurance agreement or annuity agreement – monetary value of repurchase value established as at the end of calendar year, for which information is delivered, or information on closing of an account within the calendar year, for which information is delivered.

    In case of escrow account:

    • Total gross amount of interest, total gross amount of dividend and total gross amount of other income generated in connection with assets held on the account paid into the account or credited to the account in a calendar year,
    • Total gross amount of sales revenue or redemption of financial assets paid in or credited on the account in a calendar year, relative to which reporting financial institution performed a function of a trustee, broker, proxy or other representative acting to the account of the account holder.

    In case of deposit account:

    • Total gross amount of interest paid or credited to the account in a calendar year
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