Guidance Notes to Automatic Exchange of Information under the EU Savings Directive

Summary

This is guidance from the BVI International Tax Authority (ITA), acting as Competent Authority under the Mutual Legal Assistance (Tax Matters) Act 2003, explaining how paying agents must report information on savings income interest payments made to EU-resident beneficial owners. It replaces the earlier withholding-tax regime (ended 31 December 2011) with automatic exchange of information, effective 1 January 2012, under the EU Savings Directive (2003/48/EC).

• Who must report: Paying agents (economic operators paying or securing interest for the benefit of a beneficial owner, or certain intermediary entities established in an EU Member State) must report to the ITA.
• Identification of beneficial owner: For contracts entered before 1 July 2005: name, permanent address (established under the Anti-Money Laundering Code of Practice 1999). For contracts on or after 1 July 2005: name, permanent address established via passport, ID card or other documentary proof, plus tax identification number, date and place of birth.
• Payment information: Report the paying agent's name and address, the beneficial owner's account number (or debt-claim identification if none exists), category of interest payment, amount and currency (SWIFT code), reporting period, and submission date.
• Categories of interest: Reports must distinguish between interest paid or credited on debt claims, interest accrued/capitalized on sale or redemption, income from certain collective investment funds, and amounts attributable under Article 6(4), per Section 17(3) of the Act.
• Submission mechanics: Reports must be completed electronically on the standard form and submitted to BVIITA@gov.vg. Where multiple payments or joint account holders are involved, a separate form is required for each individual beneficial owner.

The guidance is procedural and explanatory, intended to help paying agents complete and submit the required reporting forms correctly rather than creating new substantive rules beyond the underlying legislation.

Key obligations

• Paying agents must report interest payment information to the Competent Authority (ITA) in the manner set out in Article 17 of the Mutual Legal Assistance (Tax Matters) Act 2003.
• Paying agents must identify and record the beneficial owner's name, address, account number (or debt claim identification), and, for post-1 July 2005 relationships, date of birth, place of birth and tax identification number where available.
• Reports must categorize interest payments according to the classifications in Section 17(3) of the Act (Article 6(1)(a)-(d) categories).
• Reports must be completed electronically on the standard form and submitted to BVIITA@gov.vg.
• Where a single account has multiple payments or joint holders, separate report forms must be submitted for each individual beneficial owner.

Applies to

paying agents, economic operators paying or securing interest payments

Deadlines

• annually, reporting period ending 30th June each year: Reporting periods for interest payment information are annual and end on 30 June of each year.
• 1st January 2012: Effective date from which automatic exchange of information replaced withholding tax under the EU Savings Directive.