Automatic Exchange of Information
Ireland fully supports the global move towards Automatic Exchange of Information (AEOI) for tax purposes and is actively involved in progressing AEOI within the EU, the OECD, and on a bilateral basis. Revenue has published a "Revenue Guide to Automatic Exchange of Information (AEOI) for Financial Account Holders" to address account holder questions on AEOI.
The Foreign Account Tax Compliance Act (FATCA)
In December 2012, Ireland concluded an Intergovernmental Agreement with the United States to improve international tax compliance and implement FATCA. This Agreement provides for a bilateral and reciprocal exchange of information with the US in relation to accounts held in Irish financial institutions by US persons, and accounts held in US financial institutions by Irish tax residents. In order for this exchange of information to take place, Irish financial institutions must report to Revenue details of such accounts held by them by June 30th each year.
The legislation to implement the Agreement - Section 891E, TCA 1997 - was inserted by Section 32, Finance Act 2013 and the Regulations (Statutory Instrument 292 of 2014) came into force from 1 July 2014. The Regulations require Financial Institutions to have conducted the required due diligence and account information gathering from that date. To assist financial institutions in their FATCA implementation, Revenue have also published guidance notes, FAQ’s and technical information on the reporting process and these documents are available below.
The first returns of financial account information were exchanged with the US tax authorities during 2015.
- Agreement Between the Government of Ireland and the Government of the United States of America to Improve International Tax Compliance and Implement FATCA (PDF, 243KB)
- Financial Accounts Reporting (United States Of America) Regulations 2014
- Guidance Notes on the Implementation of FATCA in Ireland (PDF, 1.36MB)
- FATCA FAQs for US Citizens (PDF, 209KB)
- FATCA ROS Userguide (PDF, 728KB)
- Details of FATCA validation changes (PDF, 160KB)
- SI 501 of 2015 (PDF, 119KB)
The Standard for Automatic Exchange of Financial Account Information in Tax Matters (The Common Reporting Standard (CRS))
The "Standard for Automatic Exchange of Financial Account Information", also known as the Common Reporting Standard (CRS) is a new, single global standard on Automatic Exchange of Information (AEOI). It was approved by the OECD in February 2014 and draws on earlier work of the OECD and the EU, global anti-money laundering standards and the Model FATCA Intergovernmental Agreement. The CRS sets out the financial information to be exchanged, specifies the financial institutions required to report, along with common due diligence standards to be followed by financial institutions.
Irish financial institutions will be required to submit CRS information to Revenue by 30 June each year with the first returns due by 30 June 2017.
Under the CRS, participating jurisdictions will be required to exchange certain information held by financial institutions regarding their non resident customers. Over 90 jurisdictions have committed to exchanging information under the CRS and a group including Ireland, have committed to the early adoption of the CRS (known as the ‘Early Adopter Group’) with the first data exchanges taking place in September 2017. Ireland’s published list of Participating Jurisdictions (PDF, 123KB) for CRS/DAC2.
Legislation to implement the CRS in Ireland was introduced in Finance Act 2014 by inserting Section 891F of the Taxes Consolidation Act 1997, and Regulations (Statutory Instrument 583 of 2015) came into effect on 31 December 2015.
The CRS, along with its related Commentary sets out exactly what information is to be exchanged and is available below. In addition to this the OECD have developed a CRS Handbook to help with the implementation of CRS globally, and have published some FAQs on the OECD website. Revenue have also issued some FAQs regarding local implementation, also available below.
- Standard for Automatic Exchange of Financial Account Information - CRS (PDF, 7.98MB)
- CRS FAQs (PDF, 283KB)
- SI 583 of 2015 (PDF, 63KB)
EU Directive on Administrative Cooperation (Council Directive 2011/16/EU)
The EU Directive on Administrative Cooperation in the Field of Taxation (the "DAC") provides that EU Member States shall, in respect of taxable periods commencing on or after 1 January 2014, engage in the automatic exchange of available information concerning residents of other Member States in respect of 5 categories of income and capital:
- employment income;
- directors’ fees;
- life insurance products not covered by other Directives;
- ownership of and income from immovable property.
The DAC was transposed into Irish legislation in December 2013 (Statutory Instrument no. 549 of 2012). A revised Directive on Administrative Co-operation (DAC2) came into force in December 2014 and extends Council Directive 2011/16/EU from Revenue held information to financial account information. It essentially imports the CRS into EU legislation and legislation to implement the Directive in Ireland was introduced in Finance Act 2015 by inserting Section 891G of the Taxes Consolidation Act 1997. Regulations were enacted in 2015 and are available below. Ireland’s published list of participating jurisdictions for CRS/DAC2 purposes is available here:
- Council Directive 2011/16/EU (PDF, 904KB)
- SI 609 of 2015 (PDF, 68KB)
- Participating Jurisdictions (PDF, 132KB)
EU Savings Directive (EUSD)
The EUSD was adopted in June 2002 in order to ensure the proper operation of the internal market and to tackle the problem of tax evasion. It has been in force since 1 July 2005. Under the EUSD, paying agents are required to report interest and certain income in the nature of interest, paid to individuals resident in an EU Member State other than the one in which the income is paid. The EUSD requires Member States to automatically exchange information with each other on such interest income.
On 10 November 2015, the Council of the European Union adopted a Directive repealing the Savings Tax Directive (EUSD). As a result of the repeal of the EUSD, Irish paying agents will no longer be required to report interest payment information to Revenue on payments made to individuals resident in another EU Member State under the EUSD. With the exception of Austria, where the repealing Directive will be effective from 1 January 2017, the repeal applies to all EU Member States from 1 January 2016. This means that Austrian paying agents will be required to apply the provisions of the EUSD for a longer period than other Member States but Member States will cease to exchange EUSD information with Austria once exchanges, of information in respect of 2015 interest payments, are complete in 2016.
Impact of Repeal on Irish paying agents reporting 2016 Payments
As a result of the repeal, Irish paying agents will no longer be required to report interest payment information relating to individuals resident in other Member States (including Austria) to Revenue under the EU Saving Directive. Instead, reporting of financial information will be under Directive 2014/107/EU for mandatory automatic exchange of information in the field of taxation (DAC2).
Financial Information reporting for non-EU countries will be under the Common Reporting Standard (CRS) developed by the OECD. DAC2 and CRS come into force on 1 January 2016 with the commencement of due diligence procedures by Irish Financial Institutions to identify account holders who are tax resident in other countries.
Reporting to Revenue under DAC2/CRS by Irish Financial Institutions will commence in 2017 when information relating to non-resident account holders and their accounts will be filed with Revenue for exchange with partner jurisdictions.
Current position for certain third countries
The European Council has recently adopted an Amending Protocol to the Agreements between the European Community and San Marino, Liechtenstein and Switzerland and negotiations are ongoing with Andorra and Monaco. The Amending Protocol will align information reporting by these third countries with the requirements on EU Member States under DAC2, with San Marino and Liechtenstein set to exchange information in 2017. Switzerland, Monaco and Andorra will continue to operate the un-amended agreements until the end of 2016.
- Original directive - Council Directive 2003/48/EC (PDF, 151KB)
- Amending directive - Council Directive 2014/48/EU (PDF, 540KB)
Further Information on the Automatic Exchange of Information (AEOI)
Automatic Exchange of Information Branch
New Stamping Building
Schedule for Automatic Exchange of Information
The below table sets out a schedule of the information and jurisdictions with which Ireland has exchanged information in 2015
|2015||EU Member States||employment income;
life insurance products not covered by other Directives;
ownership of and income from immovable property
|Council Directive 2011/16/EU ("DAC")|
|2015||EU Member States||Interest Payments on Savings||EUSD|
|2015||United States||Financial Account||FATCA|