Vanuatu to Exchange Tax Information with Partner Jurisdictions
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The Government of Vanuatu has announced that it will exchange tax information with partner jurisdictions in accordance with the Convention on Mutual Assistance on Tax Matters (the Convention) and the Multilateral Competent Authority Agreement (MCAA) made under that Convention.
Vanuatu Competent Authority
Effective January 1, 2020, the Director of Customs and Inland Revenue has been appointed to perform the functions of the Vanuatu Competent Authority. The Competent Authority functions are undertaken by the Competent Authority personally as well as staff delegated authority to perform Competent Authority functions.
Domestic Law
From January 1, 2020, the Common Reporting Standard (CRS) is implemented in Vanuatu through the Tax Administration Act and Tax Administration Regulations made under the Tax Administration Act. The CRS Regulations provide for automatic exchange of tax information and set out how the Common Reporting Standard will be applied in Vanuatu.
Wider Approach to Reporting
Vanuatu has adopted the “wider approach” to reporting, which requires Financial Institutions to report on any person that is a tax resident of any jurisdiction other than Vanuatu or the United States. The due diligence procedures are designed to identify accounts held by residents of jurisdictions with which the implementing jurisdiction exchanges information under the Applied Standard.
Key Timelines
- The first reporting due date for the Applied CRS in Vanuatu is May 31, 2018, or such further time as allowed.
- Reporting is an annual event. Financial Institutions file Reports on or before May 31 of each year or such further time as authorized by the VCA.
Nil Returns to be Filed
A Financial Institution that applies the due diligence procedures set out in the Applied CRS for a reporting period and finds no reportable accounts is required to file an information report with the Vanuatu Competent Authority informing that no accounts are identified - effectively a NIL return must be lodged annually where necessary.
Purpose of these Guide Notes
As the CRS is a global standard, the OECD has developed extensive and comprehensive materials for the consistent application and interpretation of the Standard by all jurisdictions. These guide notes provide guidance on aspects of the CRS that are particular to Vanuatu. The guide notes are not intended to replace the information in the OECD documents referred to above, which form the core of the Standard and its interpretation.
For more information, please visit the Vanuatu Competent Authority page or contact the Director of Customs and Inland Revenue at [insert email address].