Automatic exchange of tax information

Basic information about the automatic exchange of tax information

On this page, we would like to explain to you the basic terms regarding tax residence. As a bank, we have to fulfil the obligations the Czech Republic has agreed to meet together with other countries for the automatic exchange of tax information. The aim of the agreement is to fight global tax evasion.

ČSOB will contact the clients who should provide (additional) tax residence data.

When processing tax residence data we adhere to Act No. 105/2016 Coll., which amends some international cooperation on tax administration laws and cancels Act No. 330/2014 Coll., on Exchanging Information on Financial Accounts with the United States of America for tax administration. The law is based on an OECD standard.

The automatic exchange of tax information (Common Reporting Standard, abbreviated to the "CRS") is a unified regulation establishing procedures for financial institutions to identify reportable accounts and obtain information about their owners (holders). This data is then sent to the local authority, in our case to a Specialized Tax Authority.

We have to meet three basic obligations for the automatic exchange of information:

1. Obtaining tax residence data

In addition to the basic identification data of the client (e.g. name, surname, permanent address, date of birth etc.) we now also have to register data on tax residence:

  • Country of tax residence i.e. the country in which the client pays taxes;
  • Tax Identification Number (TIN) - this is the number through which the client communicates with the tax authorities (in the Czech and Slovak Republics the birth number of private individuals and the ID Nos. of legal entities are also used for this);
  • If there is a difference between the country of the permanent address / registered office and the country of tax residence the reason for this discrepancy must be specified.

The data is collected through a declaration that is used to determine the country of a client’s tax residence.

2. To meet the relevant requirements ČSOB examines the following client information

with private individuals:

  • client’s tax residence;
  • permanent residence address;
  • telephone no. to another contracting country and concurrently no Czech telephone no.;
  • standing orders (other than those to a deposit account) to transfer funds;
  • currently valid power of attorney or the right to sign to a person with an address in the given country;

with legal entities

  • client’s tax residence;
  • registered office address;
  • place of incorporation or establishment of a legal entity; or address of an administrator or several administrators of a trust fund in the given country.

3. Reporting to the Specialized Tax Authority

Tax non-residents of the Czech Republic must report periodically the different types of their financial income: interest, dividends, income from insurance, gross proceeds from the sale of property that can generate interest or dividends etc. and account balances. Every year as at June 30 we must send the relevant information to the Specialized Tax Authority, which will subsequently distribute it to all competent authorities in other countries.

What information is passed on?

As of 30th June, the following information for previous calendar year is passed on to the Specialized Tax Authority of the Czech Republic and the authorities of other countries, where the client is a tax resident:

Individuals: First name, surname, date of birth, permanent address and country of tax residence, tax identification number, account number, account balance or value at the end of the year, gross amount of interest, dividends and other income paid or transferred to the account.

Legal entities: Trade name/Name, identification number, situation of registered office, country of tax residence, tax identification number, account number, account balance or value at the end of the year, gross amount of interest, dividends and other income paid or transferred to the account.

Limitation of liability

This page is a global summary of information for ČSOB clients. It cannot be considered as legal or tax advice in any way. CSOB does not guarantee the accuracy and completeness of this information and is not responsible for any errors or losses resulting from decisions based on the information contained in it.