Guidelines for the implementation of the EU Council
Directive 2014/107/EU of 9 December 2014 amending Directive
2011/16/EU as regards mandatory automatic exchange of information
in the field of taxation (DAC2) in Malta and the Common Reporting
Standard (CRS) issued in terms of Article 96(2) of the Income Tax
Act (Chapter 123 of the Laws of Malta).
The first set of amendments made to the said DAC2 and CRS
Guidelines was brought about by virtue of Version
1.2 of the Guidelines that was published on the
8th November 2016. Changes included amendments to
the list of Non–EU Reportable Jurisdictions as well as the
list of Participating Jurisdictions in terms of the Cooperation
with Other Jurisdiction on Tax matters Regulation.
The second set of amendments was brought about by
Version 1.3 of the Guidelines that were published
on the 19th December 2016. Version 1.3 has brought
about two main changes:
The first being of particular
relevance to trustees that qualify as RMFIs for CRS purposes, since
RMFIs are no longer allowed to "align the scope of
the beneficiaries of a trust reported as Controlling Persons of the
trust with the scope of beneficiaries of a trust treated as
Reportable Persons of a trust that is a MFI."
Therefore the difference in treatment of trusts that are MFIs as
opposed to those that are NFEs, particularly in the context of
discretionary beneficiaries, is very important since discretionary
beneficiaries of an RFI are required to be treated as an Account
Holder in the years in which they receive a distribution and
discretionary beneficiaries of a NFE are required to be reported
regardless of whether a distribution is received in a given
The second amendment is of broader
application in the sense that it relates to the transmission of
information to the Commissioner for Revenue. The Guidelines now
require reporting to be done using the XSD Schema issued by the
OECD available here.
Further guidance has been introduced in the area of
The Common Reporting Standard (CRS) is the standard for the automatic exchange of financial account information produced by the OECD, which provides for exchange of client due diligence (CDD) information between various jurisdictions.
The Department for International Tax Cooperation ("DITC") has released Version 2.0 of the Common Reporting Standard ("CRS") Guidance Notes and clarified certain areas:
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