Legal alert no. 6
On October 11th, it was published the Decree-Law no. 64/2016 which establishes new rules regarding the access regime and automatic exchange of financial information in the area of taxation.
This legislation enables:
- The definition of supplementary rules for the implementation of mechanisms for international cooperation and for the fight against tax evasion, pursuant to article 16 of the Financial Information Reporting Regime, approved by article 239 of Law no. 82-B/2014, of December 31st, considering the Foreign Account Tax Compliance Act (FACTA) and;
- The establishment of new rules on the obligation to comply with communication and due diligence rules applicable in relation to financial accounts qualified as subject to the communication of the account holders or the beneficiaries who are residents in other Member States of the European Union or in other participant jurisdictions, thus transposing to national law the Directive 2014/107/UE of the Council, of December 9th, 2014.
In this context, it is intended to promote a further enlargement of the access and automatic exchange of financial information for tax purposes, covering the cash balance of financial accounts, on the basis of the single worldwide standard developed by the Organization for the Economic Cooperation and Development, generally referred to as Common Reporting Standard.
To access the full text of the Decree-Law, please click on the following hyperlink - Decree-Law n. 64/2016.