AEOI / FATCA

Based on the OECD standard, the following information pertaining to insurance policies held by taxpayers whose account is in a different country from their tax domicile must be sent:

• Name, address and date of birth
• Tax residency
• Tax identification number
• Account and policy number
• Account balance or value
• Surrender or taxable value for redeemable insurance and annuity insurance contracts and capital redemption transactions
• Contract terminations
• Interest / earnings
• Benefits

Both natural persons and legal entities are affected by the AEOI if their tax domicile is not exclusively in Switzerland. Financial institutions must therefore clarify with all customers where their tax domicile is.

Further, for legal entities, the controlling persons are also affected by the AEOI and their tax liability must also be clarified.

AXA Life Ltd. is planning to inform those customers affected about the information sent on an annual basis.

In deciding in which country an employee is tax resident, and where his global income is to be taxed, the following criteria are applied:

1. In which country does he maintain his permanent residence?
2. If he maintains a permanent residence in both countries, where is the focus of his life interest (the closer personal and economic relationships)?
3. If the country that is the focus of the person's life interest cannot be determined, the country applies in which he is usually resident.
4. If the person is usually resident in both countries, he is deemed to be tax resident in the country of which he is a citizen.
5. If the person is a citizen of both countries or of neither, the contracting countries determine the matter by mutual agreement.

Switzerland already has agreements with numerous countries on the automatic exchange of information. Further such AEOI agreements are planned or at the negotiation stage. The current status for the individual countries can be obtained from the State Secretariat for International Finance.

Information about the taxpayer will be sent to the national tax authority, which will automatically forward the data to the tax authorities of the taxpayer.

The automatic exchange of information with the first partner countries will be introduced in Switzerland as of January 1, 2017. Further partner countries will follow as of January 1, 2018, and later. In each case, the notifications will be made not later than six months (end of June) after the end of the reporting year.

Swiss Confederation