CRS

CRS (Common Reporting Standard) is an automatic exchange of information practiced by governments around the world to more effectively and on a larger scale combat tax evasion. The CRS standard was developed by the OECD (Organisation for Economic Co-operation and Development) as the basis for the automatic exchange of information about clients' tax residencies between tax authorities.

In accordance with CRS regulations, financial institutions, including Trigon Dom Maklerski S.A., are required to determine where their clients should pay taxes. This involves determining their tax residency.

‍

The legal act authorizing the exchange of tax information with other countries is Act of 4 April 2019 on Amendments to the Act on Exchange of Tax Information with Other States and Certain Other Acts (Journal of Laws of 2019, item 694) (hereinafter referred to as”The Act”). The provisions of the CRS Act, concerning the rules for searching for reportable accounts and providing information about them to tax authorities, amend the CRS form for individual and institutional clients.

Main obligations of the financial institution:

• Application of due diligence procedures (i.e., rules for verifying financial accounts and identifying accounts subject to reporting obligations) and reporting procedures (i.e., rules for transmitting information about financial accounts subject to reporting obligations);
• Recording actions taken as part of fulfilling the aforementioned obligations (for example, recording the date, type, and description of the performed action, e.g., the date the account was classified or when the declaration was received from the client);
• Collecting documentation required for performing the aforementioned obligations, particularly declarations of tax residency for account holders and controlling persons, and evidence in the form of documents (including certificate of residency, identity document, company registration document, reviewed financial statements).

Under the provisions of the Act, Trigon Brokerage House S.A. is primarily required to obtain declarations of tax residency from clients for CRS purposes.

The country of tax residence is the country in which a person is subject to taxation on their total income in accordance with the domestic law of that country, due to their place of residence or other similar criteria.

According to the Act of July 26, 1991, on personal income tax, individuals who have their place of residence in Poland are subject to taxation on their total income in Poland, i.e., individuals who:

• Have their center of vital or economic interests (center of vital interests) in Poland, or
• Stay in Poland for more than 183 days.

The conditions for establishing tax residency in other countries are determined by the national legislation of those countries. Additionally, when considering tax residency, relevant double taxation avoidance agreements should also be taken into account.

In special cases, it is possible to have more than one tax residency.

Obligations of clients:

Account holders, and in some cases controlling persons (beneficial owners for entities), are obliged to submit a declaration of tax residency and provide the documents specified in the Act upon request from the financial institution. This applies particularly when:

• Entering into a transaction;
• Modifying client data.

Additionally, the account holder is required to:

• Inform the financial institution about any change in circumstances that affect their tax residency within 30 days of the change, and
• Submit an appropriately updated declaration to the financial institution within 30 days of the change in circumstances.

What information must the client provide to the Brokerage House:

Individuals (including those running a business):

• Full name
• Current address of residence
• Place and country of birth
• Date of birth/PESEL number
• Series and number of the identity document
• Country/countries of tax residency
• Tax Identification Number (TIN)
• For individuals running a business, additionally: company name, REGON, and NIP.

Legal entities:

• Name
• Registered office address
• Country/countries of tax residency
• TIN for each country of tax residency
• Status and type of account holder as an NFE (Non-Financial Entity), active NFE, or passive NFE
• Names and surnames of controlling persons of the account holder who are reportable persons.

Additionally, in connection with changes resulting from the Act, the client is liable to criminal penalties for submitting a false declaration.

Additional information is also available at OECD website.