CRS - a new standard for the Bank and its customers

Basic informations Frequently Asked Questions Declaration

What is the Common Reporting Standard?

CRS stands for the Common Reporting Standard which is a standard for automatic exchange of financial account information followed by jurisdictions all over the world with a view to maximising efficiency in preventing tax evasion. The CRS was developed by the Organisation for Economic Co-operation and Development (OECD) as a model for automatic exchange of tax residency information between countries’ tax authorities.

Acting under the CRS, financial institutions should determine what is the customer’s country for tax purposes. They have an obligation to establish the tax residency of their customers.

Obligations arising from the CRS

Primary obligations of financial institutions:

  • to follow due diligence procedures to verify financial accounts and identify reportable accounts and obtain the account holder identifying information that is required to be reported for such accounts;
  • to record what is done to fulfill the abovementioned obligations (e.g. record the date, type and details of actions taken, for example the date of account classification or receipt of the customer’s declaration);
  • to gather documents required to fulfill the abovementioned obligations, especially tax residency declarations of account holders and controlling persons and other documents (e.g. residency certificates, identity documents, company registration documents, audited financial statements).

Financial institutions obtain data and customers’ declarations to establish their tax reporting obligations under the CRS.

Customers’ obligations:

Account holders and (in certain cases) controlling persons (entity’s beneficial owners) have an obligation to submit a tax residency declaration and certain documents required under the CRS Act upon each request of the financial institution. This obligation applies especially when:

  • specific products are sold (deposit products, e.g. personal account, current account, deposit account and brokerage account), or when
  • the customer’s data are modified.

Additionally, account holders should:

  • notify the financial institution of any change in circumstances having impact on the customer’s tax residency status within 30 days of any such change;
  • provide the financial institution with an updated declaration within 30 days of any such change in circumstances.

Frequently asked questions

  • What is the CRS Act’s date of entry into force?

    Poland’s CRS Act enters into force on the 1st of May 2017.

  • Which financial institutions have to follow the CRS Act?

    The CRS regulations apply to all financial institutions in Poland (banks, mutual funds, brokerage houses, insurance companies and other). It has to be noted that financial institutions may have their specific approach to the CRS implementation, e.g. they may use different forms to be completed by customers when specifying their reporting obligations, but generally such forms should have the same content.

  • Which customers are subject to the CRS regulations?
    The CRS regulations apply to personal and business customers.
  • Will the Bank contact me for the CRS purposes?

    We will ask customers to provide additional information or documents for the purpose of establishing their CRS tax residency status. Customers will be informed about the requirement to provide such data when being served by our Bank through various customer service channels or a separate notice will be sent to such customers (this applies to the so-called transition period and situations in which the Bank will have doubts about a given customer’s tax residency status).

  • New customers, existing customers and transition period customers

    New customers are customers who will buy products subject to the CRS after the CRS regulations’ date of entry into force in Poland which means the 1st of May 2017.
    Existing customers are customers who already had products subject to the CRS on 31 December 2015.
    Transition period customers are customers who bought a product subject to the CRS in the period from 1 January 2016 to 30 April 2017. A central process of collecting the CRS Declarations will be organized for such customers - further details will be provided before relevant notices are sent to customers.

  • Which products are subject to the CRS?

    CRS in-scope products offered by BZWBK Group:

    • Current accounts,
    • Personal accounts,
    • Savings accounts,
    • Deposit accounts,
    • Brokerage accounts,
    • Trust accounts,
    • Mutual fund sub-registers.
  • Should information required under the CRS be collected only once?

    Account holders and (in certain cases) controlling persons (a company’s beneficial owner) have an obligation to submit a tax residency declaration and certain documents required under the CRS Act upon each request of the financial institution.

    Financial institutions obtain a customer’s data and declaration to establish their tax reporting obligations under the CRS.

  • Will I get all the required forms from the Bank?

    Yes. The forms can also be downloaded here .

  • Is there any deadline for presenting the information and documents required under the CRS?

    In general, the required information will be gathered at the time of product purchase or data update. In exceptional situations, customers will be requested to provide additional documents by a separate notice or when contacted by their advisor. In such a situation, the deadline for submitting the documents will be communicated.

  • What happens if I do not provide the information/documents required under the CRS?

    Under the CRS Act, Bank Zachodni WBK S.A. and each financial institution in Poland subject to the CRS have an obligation to provide relevant tax authorities with financial account information for customers whose tax residency cannot be identified. If a financial institution has any doubts as to the accuracy and quality of information provided in a customer’s declaration, it refuses to accept such a declaration and has to request the customer to submit a new declaration. By the time the valid declaration is submitted, the reporting financial institution may treat an account holder as resident in the country for tax purposes indicated in the declined declaration or based on information provided within agreements signed with such a customer.

  • What are the CRS tax residency indicia?

    Personal customers, including sole traders, freelancers and farmers:

    • residence address country (country other than Poland and the United States),
    • correspondence address country (country other than Poland and the United States),
    • telephone number in another country (if the customer indicates it as the only number and provides no other number in Poland, except for a telephone number in the United States),
    • the attorney to the account has residence address in a country other than Poland and the United States.
     

    Institutional customers, including spółka cywilna partnerships:

    • country in which legal capacity was obtained (other than Poland and the United States),
    • country of incorporation (other than Poland and the United States),
    • correspondence address (other than Poland and the United States),
    • address of the entity’s principal office (other than Poland and the United States),
    • country of controlling persons/beneficial owners (other than Poland and the United States).

    Please remember that Bank Zachodni WBK S.A. does not provide tax advisory services. If you have any questions about tax issues, please contact a tax advisor.

  • The CRS regulations provide for an obligation to report financial account information to competent authorities. When will the Bank have to report my account information to tax authorities?

    The purpose of the CRS regulations is to prevent offshore tax evasion. Bank Zachodni WBK S.A. will provide the financial account information of persons with tax reporting obligations in the countries indicated by the legislator to an authority named by Poland’s Finance Minister. The reporting obligation will apply also to customers whose tax residency status cannot be established.

  • What kind of information will be reported to tax authorities?

    Information reported to local tax authorities will cover customer data (e.g. name and surname, address, TIN - Tax Identification Number) and their account information (e.g. account ID, account balance).

  • There is an obligation to provide similar information under the FATCA - what is the difference between the two regulations?

    Even if a customer has already reported certain information for FATCA reporting purposes, the Bank may ask them to provide additional information as the CRS and the FATCA are two separate documents.

    The Foreign Account Tax Compliance Act (FATCA) is a United States federal law requiring financial institutions to search their records for indicia indicating U.S. Person-status and to report the required information in accordance with FATCA, for example based on citizenship. The CRS, on the other hand, requires financial institutions to identify customers’ tax residency and report the financial account information of customers who have tax residency in other jurisdictions.

  • Is it possible to provide tax residency information using the same document as for FATCA purposes?

    The CRS and FATCA declarations are provided in a single form.

  • What kind of declarations should be submitted?

     

    Customer type
    FATCA/CRS Declaration form
    FATCA/CRS Declaration
    Personal customers (including sole traders, farmers and freelancers)
    Business customers(excluding spółka cywilna partnerships)including controlling persons
    Partnerships (spółka cywilna) including controlling persons
  • Which customer (entity) type/status is relevant?

     

    Definitions of CRS statuses for institutional customers and partnerships

     

    Ref. no
    Institutional customer - CRS status
    Definition
    Entity types
    1
    Financial Institution

    Bank, SKOK credit union, life insurance provider, brokerage house, mutual fund, pension fund or any other entity providing similar services such as:

    • entities which accept deposits,
    • entities which offer investment-based insurance products,
    • entities which safeguard assets on behalf of third parties,
    • entities which provide investment services, manage or administer funds on behalf of third parties.

    The following entities meet the listed criteria:

    • banks (including co-operative banks),
    • SKOK credit unions,
    • life insurance providers,
    • brokerage houses,
    • mutual funds,
    • pension funds,
    • trust funds.
    2
    Active Non-Financial Entity - a corporation the stock of which is traded on an established securities market or a corporation which is a related entity of such a corporation

    A non-financial entity which is a corporation the stock of which is regularly traded on an established securities market or a corporation which is a related entity of such a corporation within the meaning of the CRS (50% direct or indirect ownership in the entity submitting the declaration is held by the corporation traded on the securities market, the entity submitting the declaration has such an ownership in the traded corporation or a single entity has such an ownership in the entity submitting the declaration and the traded corporation).

    The following entities meet the listed criteria:

    • a corporation the stock of which is traded on a securities market in Poland or another country,
    • a corporation which is a member of a capital group in which the parent company is traded on a securities market in Poland or another country.
    3
    Active Non-Financial Entity - governmental entities, central banks, international organizations

    A non-financial entity which has one of the following statuses:

    • governmental institution,
    • central bank,
    • international organization.

    The following entities meet the listed criteria:

    • governmental administration authorities, governmental entities, local administration units,
    • Poland’s central bank (Narodowy Bank Polski) or another country’s central bank,
    • the United Nations, the NATO.
    4
    Active Non-Financial Entity - other

    A non-financial entity in which more than 50% of the NFE’s gross income for the preceding calendar year was active income (i.e. other than investment-related income such as interest, dividends, income from the sale of securities, income from derivative instruments or mutual funds, etc.) and more than 50% of the assets held by the NFE during the preceding calendar year were assets that produce active income.
    This category includes entities conducting charitable activities which are exempt from tax in the country of their principal office.

    The following entities meet the listed criteria:

    • a corporation, a production entity of a services provider with their principal office in Poland or another country,
    • charity organizations.
    5
    Passive Non-Financial Entity

    A non-financial entity having its principal office in Poland or in another country which does not meet the criteria set for any Active Non-Financial Entity listed above. This category includes also investment entities (e.g. funds, trust funds) from countries which are not subject to the CRS (e.g. the United States).

    The following entities meet the listed criteria:

    • a company (existing for more than 24 months) which is not operating any business, but generating investment and savings income,
    • a holding company of financial institutions,
    • a mutual fund or trust fund in the United States.

Declaration

Customer type
FATCA/CRS Declaration form
FATCA/CRS Declaration
Personal customers (including sole traders, farmers and freelancers)
Business customers(excluding spółka cywilna partnerships)including controlling persons
Partnerships (spółka cywilna) including controlling persons
 
Bank Zachodni WBK S.A. seated in Wrocław at Rynek 9/11, 50-950 Wrocław, registered by the District Court for Wrocław-Fabryczna in Wrocław, 6th Business Division of the National Court Register, under KRS no. 0000008723, NIP: 896 000 56 73, share capital: PLN 992.345.340 paid up in full.