The automatic exchange of information (AEoI) places a significant organizational burden on financial institutions. To make things easier, SIX is introducing a service to handle the whole procedure.
The new service on offer from SIX helps financial institutions to compile and classify their clients tax data more easily. Banks will be able to extend and standardize their reporting to include their data at the year end, the financial services provider announced Monday.
The service will make it possible for financial institutions to identify client earnings that are subject to tax notification.
Since January, all financial institutions in Switzerland have been obliged to collect tax relevant client data, so that they can pass this information to the Federal Tax Administration from next June.
Audit-Ready Data
According to the OECD agreement on the automatic exchange of information, national tax authorities around the world are obliged to exchange tax data of individual persons through a standardized process – the common reporting standard (CRS).
This standard poses challenges for the banks. They have to deliver the content ready for audit. The CRS/AEI service provided by SIX simplifies this task, while fulfilling the classification criteria of Switzerland's tax authorities as well as the global CRS criteria.
