Act No. 330 / 2014 Coll.
Act on the Exchange of Financial Account Information with the United States of America for tax management purposes
Valid
Law
Effective from 18.12.2014
Text versions:
29.12.2014
18.12.2014
330
THE LAW
of 10 December 2014
on the exchange of information on financial accounts with the United States of America for tax management purposes
Parliament has decided on this law of the Czech Republic:
INTRODUCTORY PROVISIONS
Subject matter
(1) This law, following an international agreement, provides for the exchange of information which includes:
(a) the collection of information on financial accounts of tax residents of the United States of America by Czech financial institutions and their notification to the tax administrator;
(b) transmission of information on financial accounts of tax residents of the United States of America to the United States of America contact point;
(c) receiving information on financial accounts of tax residents of the Czech Republic in the United States of America by the contact point of the United States of America; and
(d) obligations relating to payments to non-participating financial institutions.
(2) The Act also provides for penalties for infringements of obligations imposed on financial institutions.
(3) For the purposes of this Act, the international agreement between the Czech Republic and the United States of America on improving compliance with tax legislation on an international scale and taking into account the laws of the United States of America on information and their notification generally known as Foreign Account Tax Compliance Act, which is part of the legal order of the Czech Republic.
Terms
If the terms used in this Act are defined by an international treaty, they are relevant to the international agreement.
Relationship with other legislation
Unless otherwise provided for in this law, the law governing international cooperation in tax administration and the tax rules shall apply.
Tax administrator
The tax administrator who carries out acts, sub-procedures or other procedures under this Act shall be the Specialised Financial Office.
Proceedings of the Financial Institution
The notifying Czech Financial Institution and the non-reporting Czech Financial Institution have for the purposes of this Act the procedural status of the tax entity.
COLLECTION AND INFORMATION ON FINANCIAL ACCOUNTS
OBLIGATIONS TO FIND THE IDENTIFICATION NUMBER
Application for an identification number
(1) The notifying Czech Financial Institution will request the United States Contact Point to assign an identification number.
(2) A non-Reporting Czech Financial Institution that holds a Reportable American Account will request the United States Contact Point to assign an identification number if it is to be assigned under an international agreement.
(3) The financial institution shall apply for an identification number in such a way as to obtain it no later than the date of the preceding date on which it is to submit a notification to the tax administrator.
(4) The financial institution shall notify the tax administrator of the identification number within 15 days of the date of its allocation.
VERIFICATION AND OBSERVATION OBLIGATIONS
Verification
(1) The notifying Czech Financial Institution shall verify that it maintains a calendar year
(a) a Reportable American Account;
(b) an account held by a non-participating financial institution.
(2) The notifying Czech Financial Institution uses the verification obligation in the performance of its tasks
(a) due diligence procedures under an international agreement;
(b) other comparable procedures the use of which is permitted by an international agreement.
(3) The notifying Czech financial institution shall notify the tax administrator of the application of the procedures referred to in paragraph 2 (b).
Detection
(1) The notifying Czech financial institution shall collect data on the notified US account for the calendar year.
(2) Data are to be collected on the Reportable American Account held by:
(a) a specified American person,
(b) a legal person or entity without a legal personality whose controlling person is a specified American person.
(3) The identified data on the holder of the notified US account are his
(a) name or designation;
(b) the date and place of birth;
(c) the address of the place of permanent or other residence or the address of the registered office; and
(d) the federal tax identification number of the United States of America and the tax identification number or other similar number used for tax purposes in the State where it is resident and the code of that State.
(4) The data referred to in paragraph 3 shall also be collected for the controlling person referred to in paragraph 2 (b).
Obligation to cooperate
(1) The account holder will provide the Czech financial institution with the necessary synergies to carry out the verification and detection obligation.
(2) The acting person shall also provide the account holder with the cooperation referred to in paragraph 1.
Storage of documents
The notifying Czech Financial Institution shall keep the documents relating to the performance of the verification and detection obligation for a period of 10 years from the end of the calendar year for which those obligations are fulfilled.
NOTIFICATION OBLIGATIONS
Notification
(1) A notifying Czech financial institution which holds a notified US account in a calendar year shall submit to the tax administrator a notification indicating:
(a) the identification number allocated to it in accordance with the international agreement;
(b) its name or designation, the identification number of the person under the law governing the national statistical service;
(c) the number of each notified US account;
(d) data found in the context of the fulfilment of the investigation obligation on:
1. to the holder of each notified US account,
2. specified to an American person who is the controlling person of the holder of the notified US account, who is a legal person or entity without a legal personality,
(e) the balance of funds in each reported US account or its value
1. at the end of the calendar year,
2. on the date immediately preceding the cancellation of the notified US account; or
3. for the period under the international agreement,
(f) further information under the international agreement;
(g) a statement that due diligence or other comparable procedures have been properly applied in the performance of the verification obligation.
(2) If the verification indicates that the Reporting Czech Financial Institution does not hold any Reportable American Account in the calendar year, it shall notify the tax administrator accordingly.
(3) A notifying Czech financial institution that holds an account held by a non-participating financial institution in a calendar year shall notify the tax administrator of this fact.
(4) If the non-reporting Czech Financial Institution as an entrepreneur carries out activities of the same type as the Financial Institution and if it is a government entity or an international organisation or if it is a Czech National Bank, it shall give the notification referred to in paragraph 1 as regards such business.
Time limit for submission of notifications
(1) The notification shall be submitted by 30 June of the calendar year following the calendar year for which the notification obligation is fulfilled.
(2) The deadline for submitting the notification cannot be extended.
Notification procedure
(1) The notification shall be made by a data message:
(a) signed by a recognised electronic signature; or
(b) with a certified identity of the feeder in a way that can be logged into his data box.
(2) The format and structure of the data report will be published by the tax administrator in a way that allows remote access.
RESULTS OF DISTORTION OF THE OBLIGATIONS OF THE FINANCIAL INSTITUTION
Fines for failure to fulfil obligations of a non-monetary nature
The tax administrator may impose a fine on the Czech financial institution for failure to fulfil obligations of a non-monetary nature if it infringes:
(a) the obligation to obtain an identification number;
(b) an examination obligation;
(c) the obligation of detection;
(d) the obligation to keep documents relating to the fulfilment of the verification and detection obligations;
(e) notification obligation.
TRANSMISSION AND ACCESS OF INFORMATION ON FINANCIAL ACCOUNTS
TRANSMISSION OF INFORMATION
Tax administrator procedure
The tax administrator shall transmit the information notified on the basis of the fulfilment of the notification obligation to the central liaison body.
Procedure of the Central Contact Authority
(1) The central liaison body shall forward the information received from the tax administrator to the United States Contact Point in the manner established by their mutual agreement.
(2) The Central Contact Authority shall transmit the data received by 30 September of the calendar year following the calendar year for which the data were notified.
RECOGNITION OF INFORMATION
Procedure of the Central Contact Authority
The Central Contact Authority shall receive information from the United States Contact Point notified under the international agreement.
PAYMENTS BY NON-PARTICIPATING FINANCIAL INSTITUTIONS
Obligations in payment of non-participating financial institutions
A notifying Czech financial institution which points out or mediates payment from sources within the territory of the United States of America to the non-participating financial institution,
(a) provide the person from whom such payment has been received with the information necessary for the notification of such payment and the tax withholding of the United States of America under an international agreement; or
(b) reduce the amount corresponding to the tax of the United States of America under the international agreement if it is bound to do so by that State and forward it to that State.
TRANSITIONAL PROVISIONS
Pre-existing financial accounts
(1) For the financial account held by the Reporting Czech Financial Institution at the date specified in the International Agreement, it is not required to identify and notify the United States Federal Tax Identification Number and the tax identification number or any other similar number used for tax purposes by the date specified in the International Agreement. If known, they shall be notified.
(2) If the notifying Czech Financial Institution is not aware of the identification numbers referred to in paragraph 1, it shall instead notify the date of birth if it is known.
(3) In the case of a financial account held by the Reporting Czech Financial Institution at the date indicated in the International Agreement, the Reporting Czech Financial Institution shall comply with the verification requirement by the date specified in the International Agreement at the latest.
Specific reporting obligation
The notifying Czech Financial Institution shall, in accordance with the international agreement, notify the name of the non-participating financial institution for the calendar year 2015 and 2016 and the aggregate amount of payments it has made to it during the calendar year concerned.
EFFECTIVE
This Law shall enter into force on the date of entry into force of the International Treaty.
Hamlet v. r.
Zeman v. r.
Sobotka v. r.
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Regulation Information
| Citation | Act No. 330 / 2014 Coll., on the Exchange of Information on Financial Accounts with the United States of America for Tax Management purposes |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.12.2014 |
|---|---|
| Effective from | 18.12.2014 |
| Effective until | - |
| Status | Valid |
Legal Areas:
International law
International public law
The regulation text is for informational purposes only.
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