The rules for exchange of information are the same as in the case of a double tax treaty
OECD web site
Automatic Exchange of Financial Account Information on Tax Matters and the Common Reporting Standard (CRS)
Standard for Automatic Exchange of Financial Account Information on Tax Matters and the Common Reporting Standard (CRS) adopted by 61 countries (50 starting on 1.1.2017 and 11 countries started as from 1.1.2018).
This standard covers Financial Institutions (“Fi”) resident in the state or a branch in the state of a foreign resident FI.
These are classified as:
Reportable persons are:
Reportable accounts are:
Statement by the early adopters and timetable
Pre-existing accounts would be those that are open on 31 December 2015 and new accounts would be those opened from 1 January 2016. Hence, new account opening procedures to record tax residence will need to be in place from 1 January 2016.
The due diligence procedures for identifying high-value pre-existing individual accounts will be required to be completed by 31 December 2016, while the due diligence for low-value pre-existing individual accounts and for entity accounts was completed by 31 December 2017.
The first exchange of information in relation to new accounts, and pre-existing individual high value accounts already took place in September 2017 (2016 information)
Information about pre-existing individual low value accounts and entity accounts will either first be exchanged by the end of September 2018 depending on when financial Institutions identify them as reportable accounts.
EU Directive on Administrative Cooperation in the Field of Taxation
The Directive is effective as from 1 January 2013 and it was enacted into the Cypriot legislation in December 2012. This provides for:
Amendments to the EU Directive on, Administrative Cooperation in the Field’ of Taxation
The competent authority of each Member State shall, by automatic exchange, communicate to the competent authority of any other Member State, information regarding taxable periods as from 1 January 2016 concerning the following items which are paid, secured or held by a Financial Institution for the direct or indirect benefit of a beneficial owner who is a natural person resident in that other Member State:
(b) capital gains;
(c) any other income generated with respect to the assets held in a financial account;
(d) any amount with respect to which the financial institution is the obligor or debtor, including any redemption payments;
(e) account balances.