CRS & FATCA Advisory and Compliance 

CSB Group is composed of a team of professional specialised in CRS and FATCA Compliance who may provide you with the necessary advice and solutions to curb the compliance overhaul that CRS and FATCA may cause to your business. We may facilitate the due diligence process and conduct the necessary FATCA and CRS reporting on your behalf. 

International Tax – CRS & FATCA Advisory and Compliance 

The automatic exchange of tax information has become paramount in the fight against tax evasion and for the promotion of a fairer and transparent, international tax environment. In this regard, the tax exchange of information amongst member states have been facilitated to the adaptation of two important legislative instruments. The Foreign Account Tax Compliance provisions (commonly known as FATCA) and the Common Reporting Standard (CRS) have been implemented in our Maltese legislation by virtue of Subsidiary Legislation 123.156 – Exchange of Information (United States of America) (FATCA) Order
Subsidiary Legislation 123.127 – Cooperation with Other Jurisdictions on Tax Matters Regulations, respectively.  

As outlined in the guidelines issued by the Maltese International Tax Unit, the primary scope of these two (2) legislative instruments is to prevent abuse of the voluntary tax compliance system and to address the use of financial accounts as vehicles for foreign tax evasion. In this regard, these instruments identify Maltese Financial Institutions as being in the best position to identify and report information pertaining to its reportable account holders.  

Moreover, the above-mentioned guidelines emphasise that the due diligence procedures to be performed by the reporting Malta financial institutions for the identification of reportable accounts are intended to supplement and not replace due diligence requirements already undertaken for AML/CFT purposes. The rules distinguish between individual accounts and entity accounts, and further distinguish between pre-existing and new accounts. This recognizes the reality that it is more difficult and costly for Malta Financial Institutions to obtain information from pre-existing financial account holders.    

Malta, steadfast in its dedication to tax transparency, views a fair and transparent tax system as a cornerstone of good governance. Recongnising the importance of international cooperation in combating tax evasion and fostering financial integrity, Malta has actively engaged in numerous legal arrangements for the Exchange of Information. Among these agreements are prominent frameworks such as FATCA (Foreign Account Tax Compliance Act), CRS (Common Reporting Standard), and DAC6, 7 and 8 (Directive on Administrative Cooperation).

The commitment of Malta to these international standards is enshrined in the legal framework provided by Subsidiary Legislation 123.127, specifically the Cooperation with Other Jurisdictions on Tax Matters Regulations. These regulations outline Malta's obligations and commitments concerning the Exchange of Information, underscoring the nation's proactive stance in fostering global tax cooperation.

Advisory Services

In navigating the complexities of international tax regulations and compliance, CSB Group stands ready to provide valuable assistance. As a reputable entity, CSB Group can play a pivotal role in facilitating the seamless implementation of these international obligations for businesses and individuals. Their expertise extends to aiding clients in meeting reporting obligations, ensuring the accuracy and completeness of information, and facilitating the onward exchange of information with the Malta Tax and Customs Administration.

By partnering with CSB Group, entities can not only navigate the intricate landscape of international tax compliance but also contribute to Malta's commitment to upholding the principles of tax transparency and good governance on the global stage. Through these concerted efforts, Malta aims to create an environment that not only attracts international business but also sets a high standard for responsible and transparent financial practices.

CRS, FATCA & DAC6, 7 & 8 Compliance

CSB Group boasts a dedicated team of experts well-versed in CRS, FATCA, and DAC6 compliance, ready to provide tailored advice and effective solutions to navigate the intricate landscape of compliance changes associated with these regimes for your business. We streamline due diligence procedures and manage reporting requirements on your behalf, ensuring a seamless and efficient process.

Beyond FATCA and CRS, the EU's Directive on Administrative Cooperation (DAC) has progressively expanded the scope of mandatory disclosure and automatic exchange of information obligations. DAC6, implemented in Malta through S.L. 123.127, requires intermediaries and, in certain cases, taxpayers to report cross-border arrangements bearing one or more hallmarks indicative of potential tax avoidance, with reporting obligations having applied since 2020. DAC7, which EU Member States were required to transpose by 1 January 2023, extended automatic exchange of information to digital platform operators, requiring them to collect and report data on sellers generating income through their platforms. DAC8, agreed at EU level in 2023 and scheduled for transposition by 31 December 2025, further broadens the framework to cover crypto-asset service providers and e-money issuers, aligning EU reporting standards with the OECD's Crypto-Asset Reporting Framework (CARF).

CSB Group's compliance team monitors these evolving obligations closely, helping clients assess their reporting exposure, meet filing deadlines, and adapt their internal processes as the DAC framework continues to develop.