On November 30, 2022, the Tax Code of Georgia was amended, and Article 702 was added.  According to this amendment, financial institutions are obligate to request the tax residency data from their customers. This information includes details about the country in which they hold tax resident status

For the complete text of the amended Tax Code of Georgia, please visit at the link

Galt and Taggart, as a financial institution, is obliged to collect information about the tax residency status of their clients; clients are required to provide Galt and Taggart with complete, up-to-date and accurate information

The definition of tax residency varies by jurisdiction. Relevant information on this matter can be found on the webpage of the Organization for Economic Cooperation and Development (OECD): Link

The common standard of accounts implies the prevention of tax evasion by tax residents of countries participating in the CRS system and the exchange of information about their tax residence between participating countries

According to the Common Reporting Standard (CRS), the financial institution is obliged to collect and provide information on the tax residency of customers to the Revenue Service. Hence, it is necessary to undergo a self-declaration process at Galt and Taggart. This means that when opening a new account, investing in new financial products, or making any changes, Galt and Taggart requests customers to confirm the relevant details.

According to the CRS, Galt and Taggart requires the customer to provide the following information:

• Name, Surname
• Address
• Place of birth
• Date of Birth
• Country of tax residence (in which country the customer has taxpayer status)

Taxpayer Identification Number (TIN)

To add tax information to Galt & Taggart, you will need to provide two details in total. Please send us, through email, the country where you have tax residency status and the taxpayer identification code. However, if the country does not issue a code, this will also need to be indicated.

In the event of incomplete data, Galt and Taggart reserves the right to refuse to open an account or to close an existing account.

Additionally, in case of the discovery of tax residency in a foreign country, Galt and Taggart is obligated to provide this information to the Revenue Service."

If you have undeclared income and are also a tax resident of a foreign country, you will need to complete a self-declaration

The data of individuals/entities whose information includes the tax residency of a foreign country; or who are believed to be tax residents of a foreign country and do not submit this information to Galt and Taggart, will be transferred to the Revenue Service

Under the CRS, financial institutions are required to determine the tax residency status of each customer, regardless of their nationality or location

Also note:

If a customer is a tax resident of a country other than Georgia, their information will be shared with the Revenue Service

If a customer is only a tax resident of Georgia, then the information will not be shared with the Revenue Service

A customer has to provide the tax residency data only once, unless the existing data or the person's status changes and this affects the change of their tax residency

The information provided within the self-declaration form, as well as information on the customer brokerage accounts and products in Galt and Taggart, will be transferred to the Revenue Service

Additionally, information related to the user's balance may be transferred to the Revenue Service

The list of CRS participating countries/jurisdictions with the date of information exchange is available on the Organization for Economic Co-operation and Development (OECD) CRS portal

Customers can get additional information via these links:

https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-residency/

https://www.oecd.org/tax/automatic-exchange/