FATCA/CRS

Banks and other financial institutions are required to identify all customers who are tax resident in a country other than Denmark. This applies to both private customers and legal persons.

If you have been asked to complete our combined FATCA/CRS Self-Certification Form, you may have some questions about it. Therefore, we have created this FAQ page providing you with information about FATCA and CRS tax legislation, as well as about self-certification, the reporting process and the consequences of non-compliance.
 
CRS legislation and applicability

What is CRS?
CRS - Common Reporting Standard - is a global standard for the automatic exchange of financial account information. The objective of CRS is to counter international tax evasion. The CRS standard requires financial institutions to identify financial accounts held by customers who are tax resident in a state or jurisdiction other than their own. The CRS regulation is based on the FATCA regulations, but there are key differences between CRS and FATCA. The main difference is that CRS encompasses approximately 100 countries, as opposed to FATCA which only covers the United States and account holders who are tax resident in the United States. All EU Member States have endorsed CRS and signed an agreement on automatic exchange of financial information (the DAC2 directive).

What does CRS mean in practice?
All financial institutions in Denmark are obliged to comply with the requirements of CRS. However, it should be noted that the approach may differ between them. Financial institutions have different approaches as to how they collect information from customers in order to verify their CRS status. This is why the self-certification forms may differ between banks.

Danske Bank asks all its new customers and some of its current customers about their tax residency. If a customer is generally liable to pay tax outside Denmark, it is required to provide Danske Bank with a valid foreign Taxpayer Identification Number (TIN) Danske Bank.

Customers, who have been identified as liable to pay taxes in a country other than Denmark, will be reported to SKAT in May each year. The same applies to customers where indicia of foreign tax liability have been found, see below, and who do not respond to our enquiry.

The report will contain information about account balances and income received on accounts which are in scope for reporting

I am a foreign tax resident. How does CRS affect me?
CRS means that Danske Bank will send information on your accounts to the tax authorities. You are responsible for making sure that you complete your tax return(s).

My child is a foreign tax resident. How does CRS affect it?
Minors are not exempt from reporting under CRS. If your child is a foreign tax resident and a customer of Danske Bank, we would need the same information about your child as about you.

I have informed Danske Bank that I was a US tax resident. I am not anymore, what should I do?
If you previously have informed Danske Bank that you were a foreign tax resident, but are not anymore, you need to send a self-certification form to Danske Bank with information about your current tax residency. Additional documentation may also be needed, see below.