Clarification issued by the Commissioner for Tax and Customs
The Commissioner for Tax and Customs published a new version of the Guidelines for FATCA and CRS in December 2023. The changes to the Guidelines includes a clarification to the definition of “Passive Income” in the context of Specified Insurance Companies.
In terms of such clarification, in order to determine whether investment income derived by such entities is passive in nature, one must determine if such income is being derived in the normal course of a trade or business, or otherwise.
The clarification outlines that it is expected that only investment income arising from capital in excess of the amount of capital required to be maintained by such entities for regulatory purposes will be viewed as passive income.
Upcoming FATCA and CRS reporting deadlines for reporting year 2023
The deadline for the submission of reports using the alternative format (i.e. excel sheet) made available by the Maltese Tax Authorities is 30 March 2024, whilst the deadline for XML reporting is 30 April 2024.
At PwC, we can help facilitate the FATCA and CRS reporting process with our PwC XML Schema Reporting Tool. This tool is especially designed to help with populating and validating the FATCA and CRS reports for submission to the tax authorities.
The PwC Automatic Exchange of Information Team can also assist you in compiling, collating and reviewing the necessary data in terms of the FATCA and CRS reporting Guidelines.
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