Latvijas pasta banka

On information disclosure to the State Revenue Service

12.01.2017

Automatic Exchange of Financial Account Information (OECD CRS).

Dear Client,

We hereby inform you that in 2014 the Organisation for Economic Co-operation and Development (OECD) has established the Global OECD Common Reporting Standard (CRS) for automatic exchange of financial accounts information.

The OECD CRS provides that once a year the state tax administration institutions will receive information from financial institutions and exchange this information with the tax administration institutions of the participating countries.

Latvia, along with 55 other countries, has joined the group of early adopters of the OECD CRS and from the beginning of 2016 the laws and regulations have become effective providing the information exchange prescribed in the OECD CRS: has passed the amendments to the laws on “Taxes and Fees” and “Credit Institutions” , as well as new Cabinet of Ministers Regulation No. 20 “Procedures for Financial Institutions on Performing Due Diligence of the Financial Accounts and Submitting Information on Financial Accounts to the State Revenue Service”.

The new requirements provide that as of 1 January 2016 the financial institutions of the Republic of Latvia, including JSC “Latvijas pasta banka”, are obliged to verify the client’s tax residency and taxpayer’s identification number and once a year provide information, prescribed in the laws and regulations, on the client’s financial accounts to the State Revenue Service (SRS) of the Republic of Latvia.

To ensure compliance with the laws and regulations, JSC “Latvijas pasta banka” will process client data and submit a report on the clients’ accounts to the SRS. The first report will be submitted by 31 July 2017 and it will include information on the clients’ account balances as at 31 December 2016.

During the first automatic information exchange, the Latvian financial institutions will have to provide information to the SRS on the financial accounts of tax residents of the following countries (participating countries) of European Union Member States: such as Austria, Belgium, Bulgaria, Cyprus, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom, and other jurisdictions: such as Anguilla, Argentina, Barbados, Bermuda Islands, British Virgin Islands, Cayman Islands, Columbia, Curaçao, Dominica, Faroe Islands, Gibraltar, Greenland, Guernsey, Iceland, India, Isle of Man, Jersey, Korea, Liechtenstein, Mauritius, Mexico, Montserrat, Niue, San Marino, Seychelles, South African Republic, Trinidad and Tobago, Turks and Caicos Islands.

Considering that OECD CRS is joined by more and more jurisdictions, Cabinet of Ministers will add new jurisdictions to the above list of the participating countries for the next reporting periods, consequently the Latvian financial institutions will have to provide information on tax residents of the new jurisdictions to the SRS. JSC “Latvijas pasta banka” will duly inform its clients on the amendments to the list of the participating countries.

We hereby inform you that the requirement to provide information on the clients’ accounts does not apply to clients – private individuals and legal entities – that are taxpayers at the Republic of Latvia and that do not have accounts with the foreign banks or other foreign financial institutions.

Should you have any questions or inquiries, please contact the bank in written via online banking system and additional information will be provided to you.

Additional information:

CRS fact sheet issued by the Association of Commercial Banks of Latvia

OECD website for OECD CRS information exchange

Yours faithfully,

Latvijas pasta banka

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