10: After the UK`s withdrawal from the EU, the situation with regard to the AIA is as follows: – Until the end of the transition period, EU agreements with third countries, such as the bilateral agreement ENTRE Switzerland and the EU, remain valid for the UK. – At the end of the transition period, the AIA will be implemented from 1 January 2021 on the basis of the multilateral tax administrative assistance agreements and MCAA. Information on the current status of trade agreements with partner countries and possible reservations can be found on the home page of the Swiss State Secretariat for International Finance (SIF). In order for two countries to implement the AIA standard, they must have an intergovernmental agreement. To this end, the OECD makes available to the relevant authority or the CAA agreement (from page 21) a model convention. These types of intergovernmental agreements can be used by states in which the government itself has the power to impose the country on the new standard. Switzerland does not apply the CAA, but concludes bilateral agreements in the form of international treaties. This section presents all the bilateral exchange relations currently under way for the automatic exchange of information on IRS, in accordance with Article 6 of the Multilateral Convention and the CRS-MCAA, as well as within the framework of the EU. In addition, some legal systems have bilateral IRS information exchange agreements under bilateral tax treaties or tax information exchanges.
Switzerland has also ratified the rating agency`s offshore informant programme, followed by Federal Decree 4.331, which introduces the automatic exchange of financial account information with Brazil as part of the OECD Transparency Agreement on the Exchange of Financial Information. 9: These states and territories do not yet meet the requirements for the activation of the AIA. As a result, the rights and obligations arising from the agreements are not effective. In particular, reporting financial institutions are not required to collect information about financial accounts and pass it on to the relevant authority. Switzerland will only inform these countries and territories as AIA partners when they meet the requirements of the international AIA standard and explain their interest in the introduction of the AIA with Switzerland. The AIA is always activated on January 1 of each year. Brazil has signed the Multilateral Agreement (MCAA) and will automatically exchange information with nearly 100 tax jurisdictions, including Switzerland. The Common Reporting Standard (SIR) provides the Ministry of Finance with an automatic exchange of information, taking into account the standardized and systematic scheduling of financial data provided by financial institutions.
It is an effective and rapid tool used by tax authorities to identify potential shortfalls in income and wealth titles in other countries. To access the global network of exchange agreements, download our KENDRIS CRS FATCA compliance app on the AppStore or Google Play. Switzerland and the United States of America have signed an agreement (IGA) to improve international tax compliance and implement FATCA. Since Switzerland is a Model 2 jurisdiction, financial institutions are required to provide information about U.S. accounts directly to the IRS. Swiss law FATCA sets the reporting obligations of the Swiss FFI after igA.