Automatic Exchange of Information
Common Reporting Standard (CRS)
To fight the offshore tax evasion and avoidance of raising money abroad, the tax authorities, in cooperation with the G20 and OECD countries, created a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI).CRS for AEOI requires financial institutions of a reporting jurisdiction to collect and report information to their tax authorities regarding account holders who are residents of other states. Such information must be transmitted "automatically" each year.
The information to be exchanged includes balances of financial accounts at the end of the reported year, capital gains (including interest, dividends, rights and income from the sale of financial assets), reported to governments by financial institutions, covering the accounts held by individuals and entities including trusts and foundations.
According to the standard, a wide range of information will be exchanged over offshore accounts, including account balances and ownership. The information that will be exchanged concerns not only individuals, but also passive companies and NFEs (non-financial entities) which have resident beneficiary owners in other countries.
Further, reporting should be done on a wide range of financial products, from a wide range of financial institutions, including banks, depository institutions, collective investment ventures and insurance companies.
Albania has committed to exchange information automatically in 2020. Albania has also joined the Multilateral Agreement of the Competent Authority (MCAA) for the exchange of information, with its signing in October 2014. This Agreement was adopted by Decision No. 178 dated 09.03.2016. The General Directorate of Taxes (GDT) is responsible for exchanging information, it will collect data from financial institutions and exchange it automatically with other signatories to the agreement.
Upon Albania's commitment to implement CRS for AEOI and in order to provide information to other countries, the necessary legislative changes have been made through Law 4/2020 "On the automatic exchange of information on financial accounts". In compliance with this law, Alpha Bank Albania has the obligation to identify and report to the General Directorate of Taxes, the tax data of its customers declared by themselves. The first report to the General Directorate of Taxation will be submitted on July 31, 2020 and in the following years the reporting will be done at end of May.
The most frequently asked questions published by the OECD can be accessed at the link below:
Find below the CSR forms