German Bundesrat approved two draft bills for the automatic tax information exchange

The German Bundesrat [upper house of the German parliament] approved two draft bills for the automatic tax information exchange (AIA) on 18 December 2015 and concurred with the German Bundestag [lower house of the German parliament].

The drafts relate to the law regarding the multilateral agreement of 29 October 2014 between the competent authorities concerning the exchange of information about financial accounts (Multilateral Competent Authority Agreement, MCAA) as well as the law regarding the automatic tax information exchange about financial accounts in tax matters and regarding the amendment to the EU Administrative Assistance Act and other laws.

From 2017 the Federal Republic of Germany is intending to exchange tax-relevant information with the EU states (including the Grand-Duchy of Luxembourg, however not Austria) as well as with the Principality of Liechtenstein according to the so-called Common Reporting Standard (CRS). Relevant data will be reported hereby from the key date 1 January 2016. From 2018 among others Austria and Switzerland should also take part in this automatic tax information exchange. With both of these countries the information that is to be reported will then refer to data from 1 January 2017.

Our tax advisors and lawyers will be pleased to offer you comprehensive advice regarding this topic.

In addition to the relevant personal data among others the following information will be reported:

  • Account balance or securities account value (including the cash value or repurchase value with insurances) as of the end of the calendar year concerned (or another suitable reporting period) or
  • Account balance or securities account value at the current value when the account is closed if the relationship has been dissolved in the reporting period.
  • Total gross amount of the interest, dividends and other income of the reporting year
  • Total gross proceeds from the sale or the repurchase of assets, which were deposited in the account or credited to the account during the reporting period
  • Distributions of discretionary trusts or foundations