The Parliament has introduced with the effect of 1 January 2016 the regulation of the Common Reporting Standards (CRS) on the automatic exchange of information on financial accounts. The primary purpose of this regulation is to provide information to the tax authorities of the participating Member States on the bank accounts held by persons resident in their country.
In order to comply with the CRS regulation our bank has to make an investigation to establish the tax residence of our customers. Therefore, before opening a bank account, our bank has to verify where our prospective customer is resident from the taxation point of view. If the customer’s residence is any of the states affected by the CRS regulation, then the account opened by the client is deemed to be an Account to be Reported (hereinafter: “Account to be Reported”).
For an Account to be Reported, pursuant to the CRS regulation, the Bank has to report the account owner’s particulars (eg. name, address, tax identifier), the account number and balance/value to the National Tax and Customs Administration of Hungary. Then, under the CRS regulation, the National Tax and Customs Administration of Hungary forwards the data to the tax authorities of the competent states.
UniCredit Bank Hungary Zrt.