The amendment of partial articles to the “Regulations Governing the Implementation of the Common Standard on Reporting and Due Diligence for Financial Institutions” has been promulgated
The Ministry of Finance announces that, in order to cope with financial institutions’ practical operations and to incorporate a recently issued explanatory decree into the “Regulations Governing the Implementation of the Common Standard on Reporting and Due Diligence for Financial Institutions” (hereinafter as CRS Regulations), the Ministry of Finance promulgated the amendment of partial articles to the CRS Regulations today (May 25).
The Ministry of Finance states that the main points of this amendment to the CRS Regulations are as follows:
1. A provision was added that if financial institutions cease to exist due to dissolution or other reasons, they do not need to wait until the statutory reporting period (June of the following year) and may complete the reporting requirements in advance to enhance the flexibility in their practical operations.
2. A provision was added that tax authorities may conduct necessary examinations on financial institutions to ensure that those institutions have indeed complied with the CRS Regulations to fulfill due diligence and reporting obligations in respect of clients who are foreign residents for tax purposes to enhance the degree of compliance with laws and regulations.
The Ministry of Finance adds that reporting financial account information in tax matters shall only be completed online, and the first reporting process went smoothly in June last year (2020). The Ministry of Finance emphasizes that financial institutions shall report the information on their financial accounts held or controlled by Australian, Japanese, and UK (newly added) residents this year (2021). In addition, in response to the impact of the COVID-19 pandemic, the Ministry of Finance is considering making a public announcement of extending the reporting period this year and will notify financial institutions as soon as possible.
Contact person: Ms. Yu- Hsuan Wang, Section Chief.
Contact Number: (02)2322-8183