31.01.2017

10'

Reporting Reminder 2017

CRS

During calendar year 2017, Swiss financial institutions will not report any CRS data to the Swiss Federal Tax Autority yet. The Swiss registration and filing portal (ESTV SuisseTax) which will be used for the registration with the FTA is expected to be launched during the first quarter of 2017. The activation of the upload module is scheduled to mid-2017. Swiss Reporting Financial Institutions will be able to test the file upload via the AOE channels (XML Data Upload and Online Form) and via the data exchange platform (WebServices) beginning in June 2017. 

8966 FATCA Reporting

Important changes in brief

Filer Category Codes

For reporting year 2016, the Filer Category Code in Part I, line 1b must be filled out.

Accounts closed during the year

Beginning with calendar year 2016, the checkbox in Part IV line 3b must be filled out when reporting accounts that have been closed during the year. The instructions have been updated accordingly. 

Account holders, intermediaries, or sponsored entities without TIN

For reporting year 2016, it is no longer required to enter nine zeros if an account holder, an intermediary or a sponsored entity does not have a TIN.

Sponsored Entity GIIN

Beginning with calendar year 2016, it is now mandatory to enter the GIIN of a Sponsored FFI or of a Sponsored Direct Reporting NFFE instead of the GIIN of the Sponsoring Entity. 

Account number of a substantial U.S. owner of a Direct Reporting NFFE of Sponsored Direct Reporting NFFE

For reporting year 2016, if a Direct Reporting NFFE or a Sponsored Direct Reporting NFFE has no account number, enter “NANUM” in Part IV line 1.

Filing Forms

Swiss Reporting Model 2 FFIs have the following two reporting deadlines for reporting year 2016:

It is within the responsibilies of the FFI to perform the 8966 FATCA reporting, and a delegation of the responsibility to a custodian is not possible.

As a Swiss Reporting Model 2 FFI, 8966 FATCA reporting is being performed electronically through the International Data Exchange Service (IDES). The FATCA XML Schemas and Business Rules for Form 8966 and the publications contained therein provide guidelines to meet the FATCA reporting requirements. Please note that beginning with January 16, 2017 all FATCA reports (i.e. new, nil, corrected, void and amended reports) must be created by using the FATCA XML schema version 2.0. 

In addition, the aggregated reporting of non-consenting accounts may result in a group request from the U.S., which, in turn, may require a Reporting Swiss Financial Institution to transmit account data to the Swiss Federal Tax Administration (FTA). The data and documentation needed to send to the FTA additionally include a SEI XML file and further documentation in pdf format. Further information can be found on the website Administrative Assistance to FATCA by the FTA.

Extension request

To request an automatic 90-day extension of time to file forms 8966 to report consenting accounts, use form 8809-I. Please note that Swiss Reporting Model 2 FFIs cannot request an extension of time to file form 8966 to report non-consenting accounts.

1042-S and 1042 Reporting

Test-Reporting

The test filing of the 1042-S reporting can be performed in the FIRE test environment from January 3, 2017 to February 28, 2017. 

Important changes in brief

Form 1042-S

Substitute Forms 1042-S
For reporting year 2016, QIs that generate substitute forms 1042-S are required to create only one Substitute Form 1042-S per Income Code. 

Recipient Country Code
Beginning with calendar year 2016 you are no longer required to fill out box 13b if the recipient is unknown. Instead enter “Unknown Recipient” in the box Recipient’s Name.

Chapter Indicator 
Beginning with reporting year 2016 there is only one checkbox for indicating the chapter an amount is reported under. The field is filled out with either “3” or “4” respectively, depending on the chapter which the amount is being reported under.

Changes to Income, Exemption and Status Codes
For reporting year 2016, there are two new status codes for payments made by a foreign branch of a U.S. withholding agent: code 34 (Chapter 3) and code 50 (chapter 4).

Unter certain circumstances a LoB-Code must be entered in box 13j for clients that apply for treaty benefits. 

Also, the following information must be provided: 

Unique Form Identifier
Beginning with year 2017, QIs are required to assign a unique identifying number to every form 1042-S filed.

Form 1042

Line 63c, Adjustments to Withholding 
Line 63c has been renamed to „Adjustments for withholding“. Possible adjustments to withholding must be entered in fields 63c(1) and 63c(2).

Lines 65a and 65b
Line 65 has been divided into line 65a („Tax paid during calendar year”) and the line 65b (“Tax paid during subsequent year”).

Filing Forms

You must file your 1042-S and 1042 reporting with the IRS by March 15, 2017. You have the option to request an automatic extension of time to file (see below).

You have to file forms 1042-S electronically as a .txt-file through the FIRE system. You can find the specifications for the electronic filing of forms 1042-S for tax year 2016 in Publication 1187.

Form 1042 must still be filed on paper. For filing form 1042 on paper, please use the following address:

Ogden Service Center
P.O. Box 409101
Ogden, UT 84409
USA

Be sure to retain proof that you mailed the tax forms on time. By having proof of filing on time you can avoid late filing penalties. If you are using a private delivery service (e.g. DHL, FedEx etc.), you can use the following street address:

Ogden - Internal Revenue Submission Processing Centre
1973 Rulon White Blvd. 
Ogden, UT 84201
USA 

Should you seek assistance in generating the electronic file, please do not to hesitate to contact us.

Extension Requests

In order for the extension request to be accepted you must file it with the IRS by March 15, 2017.

For an automatic 30-day extension of time to file forms 1042-S, use form 8809.

For an automatic 6-month extension of time to file form 1042, use form 7004. Please note that by filing form 7004 you cannot extend the time to pay your taxes due. The deadline to pay your taxes remains unchanged. 

You can complete and submit both forms online and file to the IRS electronically as follows:

1099 Reporting

We would like to remind you that Swiss Reporting Model 2 FFIs must continue to apply backup withholding on U.S. non-exempt recipients under chapter 61 on reportable payments, if required, for the period during which an account is treated as non-consenting U.S. account. As a result, you as QI, in certain cases, still have to make sure that the 1099 reporting for QI purposes is performed.

In case you have to file a 1099 reporting, you must meet one of the following deadlines depending on how you submit your 1099 reporting:

Please note that the 1099 reporting on paper cannot be performed using the downloadable PDF. You must file the original 1099 paper forms which you have to order from the IRS. Should you require original paper forms for the 1099 reporting, they can be ordered from the IRS or from us.

For a 30-day extension of time to file forms 1099, use form 8809. You must file form 8809 electronically through the FIRE system no later than February 28, 2017 (if you file forms 1099 on paper) or March 31, 2017 (if you file forms 1099 electronically).

Please remember that it is the primary responsibility of the QI to ensure that the 1099 reporting has been performed, even if the reporting has been delegated to a custodian. Should your custodian fail to report as required under the QI agreement, you must report your reportable payments to U.S. persons directly to the IRS.