Automatic Exchange on Financial Accounts
According to law no. 4/2020 “On the Automatic Exchange of Information on Financial Accounts”, 30.01.2020, Banka Kombëtare Tregtare has the obligation and is committed to fulfill the provisions of this law, referring to the implementation of Common Reporting Standard (CRS) on the automatic exchange of financial information for the identification of name of the entity, establishment place, fiscal residence country of account holder and Tax identification number of account holder.Common Reporting Standard (CRS) is a global standard, established by the OECD (Organization for Economic Co-operation and Development) in cooperation with the G20 countries and the European Union and aims to exchange information on financial accounts held in financial institutions/banks of a state, between the tax authorities of the member states of the convention. Albania has become a member by signing the agreement "On automatic exchange of financial account information", approved by Decision no. 178, dated 9.3.2016 of the Council of Ministers.
According to Law 4/2020 "On the automatic exchange of Information on financial accounts", Banka Kombëtare Tregtare, as other Financial Institutions in Albania must identify the customers residence for tax purposes and other information, such as Identification Number as Taxpayers, information on accounts/deposits or other banking products, in order to report to the Albanian Tax Authorities.
The above data will be declared from every customer by fulfilling the Self-Declaration Form for Entities with entity tax information data.
Why do I need to complete the self-declaration?
In the framework of law enforcement no. 4/2020 “On the Automatic Exchange of Financial Accounting Information”, customer is responsible for declaring or not declaring the Name of the Entity, Establishment Place, Tax Residence and Tax Identification Number.Every customer has his own responsibility for the authenticity of the information they declare.
Which are the entities subject of this law?
Any entity registered as a Juridical Person (LLC, JSC or any other form) that is establishing a relationship with the bank for the first time or is an existing customer, conducting transactions with the Bank or is requesting an update of data in the Bank, will need to complete the “CRS Self – Declaration Form for Entities” and signed by the legal representative of the entity;For Business Clients registered as Physical Persons, will be completed the “CRS Self-Declaration Form for Individuals”.
For controlling persons[1] (final beneficiaries) who own more than 25% of the shares, the “CRS Self-Declaration Form for Indivuduals” must be completed and signed if they are identified as controlling persons of a Passive[2] NFE[3] or resident investment entity in a non-participating jurisdiction, and managed by a Financial Institution.
Completion of the Self-Declaration form by a Proxy Representative
Completion and signing of the self-declaration form for the subjects in the absence of the legal representative will be allowed to be filled in by proxy against;i) Provisions of the statute of the company which should not have restrictions for delegations by proxy
ii) The delegation defined in the power of attorney to be specific for completing the self-declaration in the framework of fulfilling the CRS Form, as the data declared in the CRS Form are information related to the company and partners / shareholders.
Ways of Submitting the form
You can submit the CRS Self Declaration Form at any time at your nearest branch by presenting your means of identification: Identity Card or Passport valid
The self-declaration form (CRS) can be downloaded at the link below.
Please make sure that you complete the form correctly with the required data, sign it and then you can send it:
a. by mail to the address of the BKT branch where you are a customer
b. scanned and sent by e-mail to the email address info@bkt.com.al
[1] “Controlling Person” means an individual who owns or exercises, directly or indirectly, a certain percentage of 25% of the shares or votes of a legal entity
[2]"Passive NFE" means any NFE that is not an active NFE and is not a financial institution of the participating jurisdiction;
- 50% or more of the company gross income for the previous calendar year or reporting period is passive income and / or 50% or more of the assets held by NFE during the same period are assets that generate or are held for generate passive income;
- The entity is an investment entity managed by a Financial Institution and generates income primarily as a result of investments or trading of Financial Assets, and is not included in the Participating Jurisdictions.
A passive NFE generally refers to entities that do not have trading activities and receive income or dividends generated from its assets, including property and shares (such as companies that generate rental income).
- 50% or more of the company gross income for the previous calendar year or reporting period is passive income and / or 50% or more of the assets held by NFE during the same period are assets that generate or are held for generate passive income;
- The entity is an investment entity managed by a Financial Institution and generates income primarily as a result of investments or trading of Financial Assets, and is not included in the Participating Jurisdictions.
A passive NFE generally refers to entities that do not have trading activities and receive income or dividends generated from its assets, including property and shares (such as companies that generate rental income).
[3]"NFE" is an entity that is not a financial institution such as Banks, Insurance Companies, Trusts, Pension Funds, investment service companies.