According to the “Federal Act on the International Automatic Exchange of Information in Tax Matters” (AEOI Act) Reporting Financial Institutions, such as the Saxo Bank (Switzerland) AG, are obliged to report identification and financial information about reportable persons to the Swiss Federal Tax Administration (SFTA) each year.
The SFTA then forwards this information to the respective tax authorities of the reportable persons.
Persons subject to reporting requirements are natural persons and legal entities who are tax residents of countries with which Switzerland has concluded an AIA agreement.
If the account holder is a passive non-financial entity (NFE) the natural persons who control the NFE and are tax residents in a partner state of Switzerland has also be reported.
The continuously updated list of states and territories with which Switzerland applies the AIA can be found here: https://www.sif.admin.ch/sif/en/home/multilateral/steuer_informationsaust/automatischer-informationsaustausch/automatischer-informationsaustausch1.html
Under the AEOI, the following information on reportable persons is sent each year by the Bank via the SFTA to the client’s country of residence:
- Name, address, tax resident state(s), tax identification number(s) (TIN) and date of birth of the reportable, natural person as well as of the controlling persons/beneficial owner in case of a Passive NFE as an account holder
- Name, address, tax resident state(s), tax identification number(s) (TIN) of entity subject to reporting requirements
- Account number(s) and name of the financial institution
- Total account balance as at 31 December of the relevant year
- Total gross amount of interest, dividends and other income generated by the assets
- Total gross proceeds from the sale or redemption of assets
- When an account is closed, the values accrued up to the closing date and the closing date itself will be reported
It should be noted that the information to be collected and reported under the AIA Act does not constitute a tax base and may therefore differ from the respective tax-relevant information.
In this context Saxo Bank (Switzerland) Ltd advises that the client is responsible for compliance with all applicable laws with respect to the assets held or accounted for him.
Persons, which are resident for tax purposes solely in Switzerland, are generally not required to be reported by the Saxo Bank (Switzerland) AG.
However, the clients in respect of which any indicia exist that indicate another residence (e.g. foreign phone number), will be reported under the AEOI to the indicia countries, provided that such indicia could not be cured.
These notes do not constitute, and cannot be construed as, professional tax or legal advice. As most tax systems are complex, Saxo Bank (Switzerland) Ltd strongly recommends that you consult a local tax advisor where necessary before taking any action.