Updating contact details for the statement submitter register

Transcription

1 Introduction This guidance specifies who has to report information about other financial products which information has to be provided how the statements are to be marked other requirements and information regarding reporting Entities with a reporting obligation (i.e. financial institutions) that must comply with the regulations that implement the OECD s Common Reporting Standard (CRS) and the agreement between Norway and the USA regarding the automatic exchange of account information and implementation of FATCA (the FATCA agreement), must also seek guidance in the Guidance on international reporting of financial accounts CRS/FATCA. Which entities have a reporting obligation? The entities with a reporting obligation according to this reporting process are those who are specified in the Tax Administration Act, section 7-3, and who will not report through the following schemes: Deposits, loans and interest Life insurance Securities Below we use the term statement submitter synonymously with entity with a reporting obligation. How to become a statement submitter All entities with a reporting obligation must be registered in the Norwegian Tax Administration s statement submitter register. Contact the Norwegian Tax Administration via the Tax Hotline for registration (see Communication with the Norwegian Tax Administration /"Henvendelser til Skatteetaten"). All entities with a reporting obligation that are registered in the Norwegian Tax Administration s statement submitter register are sent information about filling out and reporting third party information for other financial products each autumn. Norwegian entities with a reporting obligation must register with the US tax authorities (IRS), which allocate a global identification number (GIIN). GIIN stands for Global Intermediary Identification Number. Registration is necessary in order to report information that has to be exchanged with the US tax authorities and takes place according to guidelines from the US tax authorities. It is important that the registered information is updated in the event of changes. Updating contact details for the statement submitter register

2 The Norwegian Tax Administration s statement submitter register obtains statement submitters organisation name and address automatically from the Register of Legal Entities in Brønnøysund. It is therefore important for this information to be kept updated at all times. This is done by filling out co-ordinated register notification for However, any changes in the Norwegian Tax Administration s statement submitter register concerning contact details, i.e. name and telephone/mobile number and address of contact persons, must be communicated to us via the Altinn form: RF-1312 Third-party information new information for the statement submitter register No exemption from the reporting obligation According to current laws and regulations, the Norwegian Tax Administration is not entitled to grant individual entities with a reporting obligation exemption from the reporting obligation. If statements are not submitted within the deadline of 10 February, a surtax can be imposed (see Surtax in event of statements submitted late or not at all ). Reporting obligation Account holders etc. that are liable to tax in other countries The reporting obligation covers all account holders who are natural persons who are resident abroad for tax purposes. A person can be resident in several countries for tax purposes, and the reporting obligation will then apply to each of the countries in question. The reporting obligation also covers American citizens regardless of where they are resident. The reporting obligation covers account holders that are companies etc. that are domiciled abroad for tax purposes. A company etc. can be domiciled in several countries for tax purposes, and the reporting obligation will then cover each of these countries. The reporting obligation encompasses beneficial owners who are resident for tax purposes abroad and/or who are American citizens. A beneficial owner can be resident in several countries for tax purpose, and the reporting obligation will then apply to each of the countries in question. Information about beneficial owners who are resident for tax purposes in Norway must be submitted from the 2018 income year. The reporting obligation covers beneficial owners in companies etc. as described in Guidance on international reporting of financial accounts CRS/FATCA. Exemptions from the reporting obligation If the aggregate balance in depository accounts owned or controlled by a natural person who is resident for tax purposes in the USA or is an American citizen does not exceed USD 50,000 at the end of the income year, it is not necessary to mark the accounts with the American country code when reporting. Content of third-party information

3 Which information must be provided The reporting obligation applies from the income year in which it is determined that the account holder or beneficial owner is resident for tax purposes/an American citizen or domiciled abroad. The reporting obligation applies irrespective of amount, although there are exemptions. The information must include: Entities with a reporting obligation name address organisation number global identification number (GIIN) Account holders and beneficial owners name address with country code date of birth national ID number/d-number or organisation number country code showing where the account holder/beneficial owner is resident for tax purposes/american citizen foreign identification number with country code (TIN) The product s or the insurance policy s account number, insurance policy number or other number where the product is registered balance or capital value at the end of the income year, including cash value for life insurance contracts interest dividend other income or payment, including payment from insurance agreement gross proceeds country code showing where account holders/beneficial owners are resident for tax purposes/domiciled Other requirements regarding the information Value of the account in Norwegian kroner All amounts must be stated in the account s currency and in Norwegian kroner. Amounts in a foreign currency must also be stated with currency code. When translating amounts in a foreign currency to Norwegian kroner, Norges Bank s exchange rates or other public exchange rates must be used. When closing an account

4 Information must also be submitted for the income year in which an account is closed. It must be specified that the account has been closed. If a closed account is marked with the American country code, the balance and value immediately before closing the account must also be stated. Gross proceeds Gross proceeds are the total amount paid or credited when a taxpayer sells shares etc. or redeems funds held on account. When reporting, commission may be deducted when calculating the gross proceeds. Cash value The cash value is the largest amount to which the policy holder is entitled in the event of a redemption or termination of the contract (without deductions for redemption fees or associated loans), or the amount that the policy holder can borrow in accordance with/association with the insurance agreement. The cash value does not cover amounts that can be paid out according to an insurance agreement in the event of a natural person s death, injury, etc. For insurance agreements/annuities other than Unit links, the cash value does not cover the repayment of paid premiums as a result of the termination of the insurance agreement, a lower risk or the correction of faults. Dividends that are paid to policy holders (apart from dividends in the event of redemption/termination) are not counted as cash value when the dividend relates to an insurance agreement where the only payments are linked to a natural person s death, injury, etc. Repayment of advance premiums or premium deposits is not counted as cash value when the premium has to be paid annually or more frequently, and the amount paid in does not exceed the premium that is to be paid in the following year according to the insurance agreement. Organisation number All statement submitters that report other financial products to the Norwegian Tax Administration are registered with an organisation number in the Norwegian Tax Administration s statement submitter register. Always use the organisation number when submitting statements and when making contact with the Norwegian Tax Administration. Contact details for the delivery Contact details ought to be provided for the delivery, i.e. name and telephone number of the contact person for the specific delivery. In addition, an address and a mobile number should also be specified for Altinn notices. Income year Income year must be specified in the delivery. Account number All statements must have an account number or another number that gives an unambiguous identification of the relevant account holder s agreement/account and its balance and interest. Statement submitters that do not operate with an account number, or other agreement number, must establish this. Statements with no content or with a missing element as regards account number will be rejected, and the statement will have to be reported again. Statement

5 submitters can construct numbers according to their own wishes. There are no limits as regards the number of characters or length. When reporting, each individual account must be reported separately. The same number in the element for account number cannot be reported for several account holders. Correct identification of the statement National ID number, D-number or organisation number The Norwegian Tax Administration uses national ID number, D-number or organisation number to identify taxpayers. In order to correctly assess the individual account holder, it is important for the correct number to be specified. If the national ID number, D-number or organisation number are not known, an alternative identifier must be specified that is unique for the statement owner. Identification number for resident in Norway All people who are resident in Norway must have a national ID number or D-number (both have 11 digits). The D-number is an identification number along the same lines as the national ID number that is allocated by the National Registry. The statement must contain either a national ID number or a D-number. For personal taxpayers who are the sole owner of a business (sole proprietorship), the statement must contain either the business s organisation number (nine digits) or the owner s national ID number (11 digits). Organisation numbers are allocated by the Register of Legal Entities in Brønnøysund. Statements for non-personal taxpayers (limited companies etc.) must be reported using organisation number. Statements that are reported without a full national ID number, D-number or organisation number are considered to be unidentified, and the statements will end up on the error list that the statement submitter receives along with the delivery acknowledgement (see also Identification number for not resident/domiciled in Norway and Error in submitted thirdparty information ). Identification number for not resident/domiciled in Norway Through agreements, Norway is obliged to exchange information with tax authorities in other countries. Even if a statement is unidentified, it can be exchanged with other countries. It is therefore important that personal details that are as complete as possible are also reported for taxpayers who are not resident or domiciled in Norway. If the taxpayer has a Norwegian national ID number or has been allocated a D-number, this must always be used. Companies, organisations, etc., that have been allocated a Norwegian organisation number must always be reported with this. Personal taxpayers that neither have a Norwegian national ID number nor been allocated a D- number must be reported with one of the following methods: When the customer has a documented correct date of birth with the bank, this must be reported in the format (ddmmyy) followed by five zeroes. In addition, the statement must include the customer's full name, foreign address and country code. In the event of an unknown date of birth, eleven zeroes must be reported. The full name and foreign address must be reported, together with the correct country code.

6 Non-personal taxpayers that do not have a Norwegian organisation number must be reported with nine zeroes. The full name and address must be reported, together with the correct country code. For foreign customers, in addition to the above method for reporting owners that are not domiciled in Norway, it is possible to add a foreign identifier if the customer has specified this. The identifier must be of a type similar to TIN (Taxpayer Identification Number), and the country code for the issuer of the identifier must also be specified. Statements that are reported without a full national ID number, D-number or organisation number will always be unidentified, and they will appear on the error list that the statement submitter receives along with the delivery acknowledgement (see Error in submitted thirdparty information ). Allocation of D-numbers The allocation of D-numbers is regulated in the regulation dated 9 November 2007 no regarding the national registry. The conditions for the allocation of D-numbers to natural persons can be seen from section 2-6 of the regulation. D-numbers are requisitioned according to the regulations in section 2-7 (1). Taxpayers liable to pay taxes and duties that do not have/cannot obtain a national ID number must have a D-number, cf. section 2-6 letter a of the regulation. The taxpayers must contact the tax office to be allocated a D-number. Unless otherwise determined, this requisition must be performed on a special form. The provision also sets out which requirements are imposed as regards identification documents, cf. section 2-7 (2). Obtaining national ID number, D-number or organisation number If you, as the statement submitter, need to obtain a national ID number or D-number from a person other than the account holder, you must send a written, justified application to the tax office where you assume that the person lives about whom you want information. You can obtain three or four items of information per week free of charge. If you have a long list of information which you wish to obtain, you must pay a fee for it. If your enquiry concerns more than four people, you should send it to: Tax Region East Fredrikstad Postboks 1073, Valaskjold 1705 Sarpsborg Organisation numbers can be obtained from: Brønnøysund Register Centre Central Coordinating Register of Legal Entitles (Enhetsregisteret) Postboks 900 N-8910 Brønnøysund

7 Delivery of third-party information Place of delivery and deadline for submission of third-party information Third-party information must be sent electronically via Altinn to the Norwegian Tax Administration. Information must be submitted using the relevant third-party reporting schemes or using the scheme for other financial products. The respective deadlines for the third-party reporting schemes apply. The information can be submitted using: Deposits, loans and interest 20 January in the year after the income year Life insurance 20 January in the year after the income year Securities funds 10 February in the year after the income year Other financial products 10 February in the year after the income year Third-party information can be delivered online (Altinn) from 2 January in the year after the income year If the statement submitter has problems keeping within the submission deadline, the Norwegian Tax Administration must be contact by at grunnlagsdata@skatteetaten.no (see also Communication with the Norwegian Tax Administration ). No extensions to the reporting deadline are granted. Make contact with the Norwegian Tax Administration if you face challenges in submitting the information within the deadline. How to submit third-party information via Altinn If you are submitting using the Other financial products scheme, there are two ways of delivering information in Altinn: 1. RF-1320 Third-party information other financial products 2. RF-1301 Third-party information as an attachment When you select RF-1301 Third-party information as an attachment, statement type: other financial products must be selected as the type of third-party information in the main form. Fill out the contact details. Under the Overview form and attachment tab, you can upload one or more XML files containing third-party information and submit (see Description of the file format ). No statements to submit Statement submitters who have no statements to submit for the year being reported can now report electronically that they do not have any statements to submit. This is done in the Altinn form for manual registration, RF-1320 Third-party information other financial products. No statements to submit can also be reported via file (separate submission type no statements ). Feedback from the Norwegian Tax Administration When you submit statements, you immediately receive a receipt with a reference number from Altinn as confirmation that the submission has been sent.

8 In addition, you receive feedback from the Norwegian Tax Administration when we have received and checked the statements. This feedback is sent to the business s message box in Altinn. This will show e.g. the total of amount items that have been reported and any errors. It is important for the statement submitter to check the feedback carefully on receipt, to ensure that any errors in the submitted statements can be rectified as soon as possible. If the feedback is not received in Altinn within a couple of days, the statement submitter must contact the Norwegian Tax Administration (see Communication with the Norwegian Tax Administration ). Errors in submitted third-party information Any discrepancies in submitted statements will be set out in the feedback and any error list that you receive from the Norwegian Tax Administration (see Feedback from the Norwegian Tax Administration ). Rejected statements presented in the feedback must be rectified and resubmitted. If you discover errors on submitted statements, you must submit new statements to correct the errors. New statements must be sent to the Norwegian Tax Administration as soon as possible, regardless of when in the year the error is discovered. Correcting a statement If you want to correct a statement, you must submit the statement again. A new submission requires that the new statement has the same unique identifier as the original statement. Unique identifiers for statements regarding other financial products are: Statement submitter Statement owner (account holder s national ID number/d-number or organisation number, or an alternative identifier) Account number It is only possible to correct a submission within the same income year. When a change report is received by the Norwegian Tax Administration, the statement will replace the previously submitted statement. The final statement you submit will then become the current statement. Correction must also be used when correcting the specified account holder. Before submitting corrections, wait until you have received feedback in Altinn from the Norwegian Tax Administration regarding the previous submission. Example 1 (incorrect amount): The first submission contains 1,000 statements. It is discovered that incorrect amounts have been submitted in 40 of the statements. New submission (correction):

9 A new delivery comprising 40 statements with the same unique identifier and corrected amount. The 40 corrected statements replace the 40 originally submitted statements in their entirety, and a total of 1,000 statements are declared to the Norwegian Tax Administration. Example 2 (confusion): A statement has been submitted with a national ID number belonging to the wrong person (confusion). New submission (correction): The entire statement for this person must be cancelled, i.e. the report must be submitted again with the amount set to 0. At the same time, a new and complete report must also be submitted with the correct national ID number and amount. The same applies when correcting an incorrect organisation number in the Register of Legal Entities. Example 3 (duplicate): Several statements in a submission contain the same national ID number or D-number (duplicates) and account no. All the statements with the same unique identifier in a delivery are rejected in the Norwegian Tax Administration s system. Statements that are rejected in the duplicate check are presented in the feedback from the Norwegian Tax Administration (see Feedback from the Norwegian Tax Administration ). New submission (correction): In order to correct a taxpayer who has been rejected in the duplicate check, a new statement must be submitted with the taxpayer s national ID number or D-number, account no. and correct total amount. Delete a previously submitted statement If you wish to delete a previously submitted statement, this can be done directly in Altinn form RF-1320, or via a file attachment in RF Note! When correcting a statement, it is not necessary to delete the previously submitted statement, as it is the most recently submitted statement that is valid. Delete a statement via Altinn form RF-1320: In the Altinn form, the selection Delete statement is used. The unique identifier for the statement that is to be deleted is registered here. When this statement is received by the Norwegian Tax Administration, previous statements with the same unique statement identifier within the same income year will be deleted. Delete a statement via Altinn form RF-1301: If the statement is submitted as a file attachment, the XML will contain a deletion statement with the same identifier as the original statement that is to be deleted. See the appendix Format description, other financial products as well as appendices showing examples of the deletion of statements. Errors in submitted submissions If a submission is rejected, this can be seen from the feedback from the Norwegian Tax Administration. Rejected submissions can be due to there being too many errors or

10 discrepancies in submitted statements, or the fact that the stated submission types in the submission are incorrect or absent. It is therefore important for the statement submitter to understand how corrections are reported. In the event of any uncertainty, the statement submitted must quickly make contact to clarify the method for correcting errors (see Communication with the Norwegian Tax Administration ). Cancelling submissions If a statement submitter needs to cancel an entire submission, the Norwegian Tax Administration must be contacted in advance (see Communication with the Norwegian Tax Administration ). Testing In order to discover possible errors so that the actual reporting is as correct as possible, the Norwegian Tax Administration recommends that statement submitters submit test statements. Read more about submission of test statements here. You can also call the Tax Hotline on tel.: (then key 4-3-1) Description of the file format The format description shows how to structure an XML file for reporting third-party information regarding other financial products. You can find the documents by following this link: Formats and technical specifications other financial products. The format description must be used by statement submitters who are going to report thirdparty information via the Altinn form RF-1301 Third-party information as an attachment. Marking statements in the case of international reporting When reporting finances and insurance policies that the Norwegian Tax Administration has to send to foreign tax authorities, the statement must be marked with International reporting CRS [country code two characters]. If the information is to be sent to US tax authorities, it must instead be marked with International reporting FATCA US. When the account holder and/or beneficial owner is resident for tax purposes/domiciled abroad (or an American citizen), the account and foreign account holder(s) and beneficial owner(s) must be marked with the relevant country s country code. If the account holder is a company etc., the account must also be marked as follows in FATCA: FATCA102 Passive NFFE with one or more genuine American (USA) beneficial owners FATCA103 Non-Participating Foreign Financial Institution FATCA104 Specified American person

11 FATCA102 must be used when information is provided about finances and insurance policies with American beneficial owners. FATCA103 must be used when information is provided about payments to an account holder that is a non-participating financial institution as defined in FATCA. FATCA104 must be used when a company etc. that is the account holder is domiciled in the USA. Not all finances and insurance policies held by American companies etc. have to be reported, see Guidance on international reporting of financial accounts CRS/FATCA. FATCA101 and FATCA105 can be found in the American format, but are not relevant for Norwegian entities with a reporting obligation. These codes must therefore not be used when reporting to the Norwegian Tax Administration. The format contains some fields that are intended for reporting with a background in the Common Reporting Standard (CRS). These fields must be used when reporting as from the 2016 income year. This relates to: Closed accounts Undocumented accounts CRS101 Passive NFE with one or more beneficial owners who are a reportable person for CRS CRS102 Reportable person for CRS CRS103 Passive NFE that is a reportable person for CRS Country codes for recipient countries other than the USA (two characters) CRS801 to CRS813 Marking of beneficial owners role in companies etc. CRS101 must be used when information is provided about finances and insurance policies with foreign beneficial owners. This applies when a beneficial owner has to be reported, regardless of whether the company etc. that is the account holder is domiciled for tax purposes in Norway or abroad. CRS102 must be used when a company etc. that is the account holder is domiciled in another country. However, not all finances and insurance policies that are owned or controlled by foreign companies etc. have to be specifically marked. CRS103 must be used when a company etc. that is the account holder is domiciled in another country and considered to be passive, but no information is reported about beneficial owners. The statement must be marked as an undocumented account when it contains information about an account opened before 1 January 2016 and where the account holder is registered with a c/o address or a hold mail address as their only address. The statement must be marked as an undocumented account regardless of the held amount/value. If the value has exceeded USD 1,000,000 at the end of an income year, the account information must be reviewed each year in order to attempt to determine where the account holder is resident for tax purposes, and the account must also be marked with the American country code. For a more detailed description of the fields, see Description of the file format for submitting information to the Norwegian Tax Administration for Other financial products. When information is available, beneficial owners must be marked as follows:

12 CRS801 = beneficial owner in legal entity ownership CRS802 = beneficial owner in legal entity other role CRS803 = beneficial owner in legal entity (senior managing official) CRS804 = beneficial owner in legal entity/association trust settlor CRS805 = beneficial owner in legal entity/association trust trustee CRS806 = beneficial owner in legal entity/association trust protector CRS807 = beneficial owner in legal entity/association trust beneficiary CRS808 = beneficial owner in legal entity/association trust other CRS809 = beneficial owner in legal entity/association other foundations or similar CRS810 = beneficial owner in legal entity/association other trustee or similar CRS811 = beneficial owner in legal entity/association other protector or similar CRS812 = beneficial owner in legal entity/association other beneficiary etc. CRS813 = beneficial owner in legal entity/association other other etc. Exemptions for reporting foreign identification number The reporting obligation covers account holders and beneficial owners foreign ID number (TIN). If a country does not issue a relevant ID number or does not require that the information must contain an ID number, it is not necessary for the information to contain the account holder s/beneficial owner s foreign ID number. Entities with a reporting obligation that do not have account holders /beneficial owners foreign ID number must instead report their date of birth. Entities with a reporting obligation must make reasonable efforts to obtain foreign ID numbers and dates of birth within two years from the time when the investigations were conducted and it was determined that the account information should be reported according to CRS/FATCA. Communication with the Norwegian Tax Administration Questions regarding the reporting of third-party information must be submitted to the Norwegian Tax Administration via the address: grunnlagsdata@skatteetaten.no You can also call the Tax Hotline on tel.: (then key 4-3-1) Annual statement to taxpayers The individual taxpayer must have a copy of the information that is submitted to the tax authorities before 1 February in the year following the income year, cf. the Tax Administration Act, section 7-12, subsection 3. It must always be evident from the annual statement that the information has also been submitted to the tax authorities. The annual statement can be designed in the manner the statement submitter finds appropriate, although it is a precondition that it is identical in terms of identification and specified amount. The annual statement must include: Name and national ID number/organisation number of account holder/beneficial owner

13 Reported amount The country in which the taxpayer is reported as being resident or domiciled for tax purposes The taxpayer s foreign ID number Name and organisation number/allocated statement submitter number of the entity with a reporting obligation Notification that an identical statement has been sent to the Norwegian Tax Administration The taxpayer must also be notified that the Norwegian tax authorities can exchange the information with foreign tax authorities in accordance with an agreement with a foreign state.