Legal
Section of documents, regulations and legal policies related to the Inteligo SAB field.
The information provided below is for informational purposes only. It should not be construed as legal or tax advice. If such advice is required, please consult with a professional advisor.
1) What is the CRS - Common Reporting Standard?
The CRS is a model approved by the Organization for Economic Cooperation and Development (OECD) for the Automatic Exchange of Financial Account Information between member countries (the "Agreement"). Peru has subscribed to this model, and locally, Supreme Decree No. 256-2018-EF imposes obligations on financial institutions in CRS-covered countries to implement an Affidavit that clients must sign.
This Affidavit identifies the tax residence of individuals who hold ownership or control of financial accounts. This information may be sent by the financial institution to local or foreign tax authorities, which is then automatically exchanged with other countries covered by the Agreement.
This Affidavit identifies the tax residence of individuals who hold ownership or control of financial accounts. This information may be sent by the financial institution to local or foreign tax authorities, which is then automatically exchanged with other countries covered by the Agreement.
2) Who are Considered Reportable Persons According to the CRS Standard?
A reportable person is any individual who is a tax resident in a reportable jurisdiction according to the tax laws of that jurisdiction or the estate of a deceased who was a resident of a reportable jurisdiction.
A reportable jurisdiction is a natural person or legal entity that has tax obligations outside of Peru, regardless of nationality or place of domicile residence. What matters is the "tax residence." This applies to foreigners, non-resident Peruvians, and individuals who, for special reasons, have tax residence in a country other than Peru, such as through residence or citizenship by investment.
Individuals with double tax residence can rely on the rules contained in agreements between countries to avoid double taxation.
The following are not considered reportable persons:
A company whose shares are regularly traded on one or more established securities markets.
Any company that is an entity related to the society described in the previous point.
A public body.
An international organization.
A central bank.
A financial institution.
A reportable jurisdiction is a natural person or legal entity that has tax obligations outside of Peru, regardless of nationality or place of domicile residence. What matters is the "tax residence." This applies to foreigners, non-resident Peruvians, and individuals who, for special reasons, have tax residence in a country other than Peru, such as through residence or citizenship by investment.
Individuals with double tax residence can rely on the rules contained in agreements between countries to avoid double taxation.
The following are not considered reportable persons:
A company whose shares are regularly traded on one or more established securities markets.
Any company that is an entity related to the society described in the previous point.
A public body.
An international organization.
A central bank.
A financial institution.
3) What is a reportable account?
A reportable account is a financial account opened by one or more reportable persons, natural or legal, with one or more "controlling persons" who are also "reportable persons." At Inteligo SAB, each client registered under a Unique Owner Registration number ("RUT") corresponds to a reportable account.
4) Do All Reportable Accounts Have to Sign the Affidavit of Tax Residency?
The CRS requires all accounts registered as new as of January 2, 2019, to "self-certify." This means Inteligo SAB clients must sign an Affidavit indicating the countries where they have "tax residence." This Affidavit is part of the Client Registration forms.
Clients who entered before January 2, 2019, will be asked to sign the Tax Residential Affidavit if the information we have on file indicates they potentially have reportable accounts.
If a natural person RUT has more than one owner, an Affidavit must be completed for each owner. In the case of legal entity clients, an Affidavit must be completed by the person or legal entity (client) and by each natural person classified as a "controlling person."
Clients who entered before January 2, 2019, will be asked to sign the Tax Residential Affidavit if the information we have on file indicates they potentially have reportable accounts.
If a natural person RUT has more than one owner, an Affidavit must be completed for each owner. In the case of legal entity clients, an Affidavit must be completed by the person or legal entity (client) and by each natural person classified as a "controlling person."
5) Who is Called a "Controlling Person"?
According to Legislative Decree No. 1372:
a) A natural person who, directly or indirectly through any type of acquisition, owns at least ten percent (10%) of the capital of a legal person.
b) A natural person who, acting individually or with others as a decision-making unit, or through other natural or legal persons or legal entities, holds powers, by means other than ownership, to appoint or remove the majority of the administrative, management, or supervisory bodies, or has decision-making power in the financial, operational, and/or commercial agreements that are adopted, or to exercise any other form of control of the legal entity.
c) When no natural person is identified under the criteria indicated in paragraphs a) or b), the final beneficiary will be considered the natural person who holds the senior administrative position.
a) A natural person who, directly or indirectly through any type of acquisition, owns at least ten percent (10%) of the capital of a legal person.
b) A natural person who, acting individually or with others as a decision-making unit, or through other natural or legal persons or legal entities, holds powers, by means other than ownership, to appoint or remove the majority of the administrative, management, or supervisory bodies, or has decision-making power in the financial, operational, and/or commercial agreements that are adopted, or to exercise any other form of control of the legal entity.
c) When no natural person is identified under the criteria indicated in paragraphs a) or b), the final beneficiary will be considered the natural person who holds the senior administrative position.
6) Is a Third Party Permitted to Provide an Affidavit on the Basis of a Power of Attorney?
If an Account Holder has granted powers, by public deed and registered in the Public Registries, to another person to represent them and is duly authorized to do so, then that other person can also sign the Affidavit.
7) Obligations of the Client:
The client must:
- Inform all countries where they have a tax obligation.
- Provide the issued tax identification number for each jurisdiction of residence for tax purposes.
- Inform Inteligo SAB, as soon as possible, of any changes in circumstances (acquiring tax obligations with a country other than Peru).
- Provide Inteligo SAB with the supporting documentation required to validate the information and determine if an account is reportable.
8) Does the CRS Replace the FATCA Standard?
FATCA and CRS are programs based on different regulations. The main difference is that FATCA is focused on citizenship and only applies to Americans, while CRS is focused on tax residency and is a multilateral agreement between OECD member countries.
As a financial institution, Inteligo SAB is obligated to comply with both standards by keeping evidence and statements separate.
As a financial institution, Inteligo SAB is obligated to comply with both standards by keeping evidence and statements separate.