10. Frequently Asked Questions

I. OBLIGATED SUBJECTS

1. Who is obligated to provide financial information to SUNAT?

According to paragraph 4.1 of Article 4 of Supreme Decree No. 256-2018-EF, those subjects that qualify as a financial institution subject to reporting, in accordance with the definition indicated in item A of the glossary of Annex I of the regulations, must submit to SUNAT the informative affidavit "CRS Financial Report."

Likewise, from an interpretation of paragraph 4.2 in accordance with paragraph 4.1 of article 4 and the definitions contained in Annex I of the Regulations, financial institutions supervised by the Superintendence of Banking, Insurance and Private Pension Fund Administrators (SBS) and by the Superintendence of Securities Markets (SMV) shall be obliged to file the declaration, to the extent that they qualify as Financial Institutions Subject to Report and meet the criteria outlined in item A of the glossary of Annex I (custody institution, a depository institution, an investment entity or a specific insurance company).

Legal basis: Article 4 of Supreme Decree No. 256-2018-EF.

Below is an informative video of the CRS Financial Report, click here: 

2. What conditions must financial institutions subject to reporting have? 

• Be resident in Peru, excluding branches of such financial institutions outside the country, or

• Be a branch of a non-resident financial institution in Peru if such branch is in Peru.

Legal basis: Subclause 1 of item A of Annex I of Supreme Decree No. 256-2018-EF.

3. Are there financial institutions exempted from the obligation to provide financial information to SUNAT? 

• Peruvian public agencies.
• International organizations, which are mainly composed of governments; have a headquarters agreement in force with Peru; and whose income does not imply a benefit for individuals.
• Central Reserve Bank of Peru (BCRP), and central banks of other jurisdictions.
• Retirement funds: large and small, from a public agency, an international organization or a central bank.
• Exempt collective investment vehicle.
• Trust, provided that the trustee thereof is a reportable financial institution.
• Qualified credit card issuer, provided they comply with the requirements of subclause 8 of item B of Annex I of the regulations.

Legal basis: Item B of Annex I of Supreme Decree No. 256-2018-EF. 

4. In the case of Trusts, is the Securitization Company obliged to file the Financial Report - CRS? If so, who would qualify as reportable persons (settlors, trustees and any other person or entity exercising control)? What information should they report in terms of values or amounts? 

According to the Regulations, a trust will not be subject to reporting if the trustee of the trust is a reportable financial institution and provides information regarding the reportable accounts of the trust. Therefore, if the Peruvian Securitization Company (trustee) qualifies as a reportable financial institution, it must be responsible for filing the CRS Financial Report for the trusts it manages. 

In this sense, the reportable persons are the individuals exercising control, i.e., the settlor(s), trustee(s), and beneficiary(ies), as well as any other individual exercising ultimate effective control of the trust. 

Likewise, the account to be reported is the equity interest held by the settlor or the beneficiary of all or part of the trust or any other individual that ultimately exercises effective control of the trust, which must be reported at its fair value as of December 31 of the reporting period. 

For the filing of year 2018 and 2019 fiscal years, the securitization companies (trustee) must attach in Excel format the list of the Trusts they manage (Corporate name and RUC No.) to the email SistemaIR-AEOI@sunat.gob.pe, and after 48 hours the request will be answered through the same means, indicating that the link has been made, with which, the Securitization Company (trustee) may file the CRS Financial Report concerning the trusts it manages.

Legal basis: Subparagraph e) subclause 1 of item B, subclause 4 of item C and subclause 6 of item D of Annex I of Supreme Decree No. 256-2018-EF, and Regulations for the Classification and Valuation of Investments of Financial System Companies (SBS Resolution No. 7033-2012, as amended) and Accounting Manual.

5. In the case of Collective Funds, is the EAFC (Collective Fund Management Company, by its Spanish acronyms) obliged to file the Financial Report - CRS? If the previous question is affirmative, who would qualify as reportable persons? What information should they report in terms of values or amounts?

In this regard and following the provisions of the Regulations, the Collective Fund Management Company (manager) qualifies as a financial institution subject to reporting, and therefore, shall be responsible for submitting the CRS Financial Report for the collective funds it manages, following the provisions of the antepenultimate paragraph of subclause 6 of item A of Annex I of Supreme Decree No. 256-2018-EF and paragraph 17 of section A of the Comments to Section VIII of the Common Reporting Standard (CRS).° 256-2018-EF and Comments 17 of section A of the Comments to Section VIII of the Common Reporting Standard (CRS), are responsible for carrying out the due diligence procedure and filing the CRS Financial Report.

In this sense, reportable persons are those who qualify as associates of the collective funds.

Likewise, the account to be reported is the total amount of the fees paid by each member until before the good and/or service is awarded, therefore, until such time it will represent a passive operation for the Collective Fund Management Companies (EAFC), after which it would become an active operation, which by the provisions of Article 143-A of Law No. 26702, General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banking and Insurance, as amended by Legislative Decree No. 1434, would be outside the scope of the Superintendency of Banking and Insurance.° 26702, General Law of the Financial System and the Insurance System and Organic Law of the Superintendence of Banking and Insurance, as amended by Legislative Decree No. 1434, would be outside the scope of the obligation to be provided to SUNAT.

Legal basis: Article 4 and antepenultimate paragraph of subclause 6 of item A, subclause 1 of item C and subclause 1 of item D of Annex I of Supreme Decree No. 256-2018-EF (Regulation); and Article 143-A of Law No. 26702.

II. FINANCIAL INFORMATION TO BE PROVIDED

1. What type of financial information must financial institutions subject to reporting to SUNAT provide?

For each reportable account, the following information should be provided:

 a) In the case of individuals: 

• Name

• Address

• Jurisdictions of residence

• Single Taxpayer Registration Number (RUC), if available.

• Taxpayer Identification Number (TIN) 

• Date and place of birth of each reportable person who holds such account.

 b) In the case of Entities (legal persons or legal entities): 

• Name or corporate name

• Address

• Jurisdictions of residence 

• Single Taxpayer Registration Number (RUC)

• Foreign Tax Identification Number (TIN), or its functional equivalent in the absence of a tax identification number.

c) The account number (or its functional equivalent if not available).

d) Name or corporate name, RUC number, TIN and the Global Intermediary Identification Number (GIIN), if available, of the financial institution subject to report.

e) Balance and yields generated from the account during the calendar year to which the declaration corresponds; in the case of an insurance contract with cash value or a private annuity contract, the cash value or the surrender value in force at the end of the year in question.

Legal basis: Article 5 of Supreme Decree No. 256-2018-EF and Article 3 of Superintendency Resolution No. 270-2019/SUNAT.

2. What is the distinction that applies for using balances, accumulated amounts, average balance, or higher amounts for the CRS Financial Report?

Following the provisions of Article 5 of Supreme Decree No. 256-2018-EF and Article 3 of Superintendency Resolution No. 270-2019/SUNAT, which approves the regulations that establish No. 270-2019/SUNAT, which approves the regulation that establishes the financial information to be provided to SUNAT to carry out the automatic exchange of information as agreed in international treaties and in the Decisions of the Commission of the Andean Community, the financial institutions subject to report must inform the balance and the yields generated from the account during the calendar year to which the declaration corresponds; in the case of an insurance contract with cash value or a particular income contract, the cash value or the surrender value in force at the end of the year considered.

The definitions of these terms are those indicated in the Instructions: "Registration of Financial Report Information - CRS", included in SUNAT's institutional web page (1), which are detailed below: 

- Balance: The difference between debits and credits recorded in an account at a given time during the reporting period.

- Accumulated amounts: The sum of the debits and/or the sum of the credits made to a given account during the reporting period.

- Average balance: The average amount of debits and/or average amount of credits to an account, determined on the basis of the cumulative amounts realized in an account divided by the number of transactions during the period.

- Highest amounts: The highest debit and/or credit to an account in a given period.

Legal basis: Subclause 5.1.4 of Article 5 of Supreme Decree No. 256-2018-EF, Article 5 of Supreme Decree No. 369-2019-EF, and Article 3 of Superintendency Resolution No. 270-2019/SUNAT. 

3. Will each reportable financial institution be required to generate and submit a separate report for each country? 

No, the financial institution subject to report will only have to generate and submit a single report containing the information of all the subjects to report. The system will internally obtain the information corresponding to a country at the moment of consolidating all the information received for the transmission to that country.

III. REPORTABLE ACCOUNTS

1. What is a reportable account? 

A financial account opened by one or more reportable persons or by a passive NFE with one or more controlling perons who are reportable if it has been identified as such in the application of due diligence procedures.

Legal basis: Subclause 1 of item D of Annex I of Supreme Decree No. 256-2018-EF.

2. What types of reportable accounts are there?

The following are the types of accounts:

Legal Basis: Subclauses 9 to 16 of item B of Annex I of Supreme Decree No. 256-2018-EF.

3. Should the Severance Pay Accounts (CTS, by its acronym in Spanish) be included in the CRS Financial Report? 

Pursuant to paragraph 3.1 of Article 3 of Supreme Decree No. 256-2018-EF, the definitions of the terms cited in the regulations may be supplemented and interpreted in accordance with the provisions of the OECD Common Reporting Standard; therefore, in accordance with the provisions of paragraph 90 of subsection C (17) of section C of the comments to Section VIII of the Common Reporting Standard (CRS), an account for purposes other than retirement may qualify as an Excluded Account, provided that it meets the following conditions: 

a) That the account is regulated as such and, if it is an investment vehicle, is subject to regular transactions in an official securities market; 

b) That the account benefits from favorable tax treatment.

c) That dispositions may be made subject to the fulfillment of certain criteria, with certain penalties applicable to those dispositions made prior to the materialization of such criteria; and 

d) That annual contributions be limited to fifty thousand (USD 50,000) US dollars or less, excluding transfers and rollovers from other accounts.

Therefore, reporting institutions should evaluate whether or not their clients' CTS accounts comply with these conditions in order to determine whether or not they are excluded from being reported in the CRS Financial Report.

Legal basis:  

• Paragraph 3.1 of Article 3 of Supreme Decree No. 256-2018-EF.

Subclause 3.1 of Article 3 of Supreme Decree No. 256-2018-EF and subclause 90 of subsection C (17) of section C of the comments to Section VIII of the CRS.

4. Should Simplified Electronic Money Accounts be included in the CRS Financial Report?

No, since according to article 5, subparagraph a) of the Electronic Money Transactions regulation, one of the conditions that "simplified electronic money accounts" must comply with is that they can only be opened by national or foreign resident individuals, being so, there is no obligation to report individuals resident in Peru in the CRS Financial Report.

Legal basis: Article 5 of the Regulations of Law No. 29985, Law that regulates the basic characteristics of electronic money as an instrument of financial inclusion, Article 5 of SBS Resolution No. 6283-2013, as amended, and subclause 3 of item D of Annex I of Supreme Decree No. 256-2018-EF.

5. If one or more partners have tax residence outside Peru, is the account considered reportable, and is the entire balance and income reported for each partner? 

Following the Common Reporting Standard (CRS), it is indicated that in the case of joint accounts, also known as pooled accounts, the following should be applied: 

• Each of its holders is considered an Account Holder to establish whether it is a Reportable Account.

When several Reportable Persons hold a joint account, each Reportable Person is considered an Account Holder, and each co-owner shall be attributed the entire balance or value of such account, as well as the total amount paid or due on the joint account (or in respect of the joint account).

Legal basis: Subclause 3.1 of Article 3 of Supreme Decree No. 256-2018-EF, subclause 13 of subsection A (4) of section A of the comments to Section I and subclause 140 of section E of the comments to Section VIII of the Common Reporting Standard (CRS).

6. What is the treatment for accounts of deceased customers, and how do you proceed in the following cases?

- The client's declaration was obtained before his death, and he had a tax residence outside Peru, should the account be reported? 

It is worth mentioning that an account related only to the estate of a individual may be an Excluded Account if the documentation of such account includes a copy of the will or death certificate of the deceased, as established in the Regulations.

Otherwise, in the aforementioned case, the Financial Institution Subject to Reporting shall consider that the account retains the reportable account status it enjoyed before the death of the Account Holder, until the date on which a copy of the aforementioned documentation is obtained. 

- The declaration was not obtained, and the client showed indications of having tax residence outside Peru. 

The account is reported as undocumented; therefore, in the address field, the option "address free" will be chosen, and in this field, the word "undocumented" will be recorded. In this regard, it should be noted that by declaring the accounts as undocumented, the financial institution subject to report presents a high risk of non-compliance with due diligence procedures, therefore, it is recommended to continue with the necessary reasonableness procedures until the address(es) of residence of the account holder is obtained.

Legal basis: Subclause 3.1 of Article 3 and subclause 17 of item C of Annex I of Supreme Decree No. 256-2018-EF, and paragraph 92 of subsection C (17) of section C of the comments to Section VIII of the Common Reporting Standard (CRS).

7. How should canceled accounts be reported on the CRS Financial Report? 

In the event of cancellation of an account, the Reporting Financial Institution must take into account the following: 

You are not required to report the balance or value of the account before cancellation or upon cancellation of the account, but you are required to report that the account has been canceled. 

In the event of cancellation of the account during the reporting year, the cancellation of the account must be communicated.

A value of 0 (zero) should be reported if the account has been canceled, in combination with the "account cancelled" attribute.

Legal basis: Subclause 3.1 of Article 3 and subclause 5.1.4 of Article 5 of Supreme Decree No. 256-2018-EF, and subclause 14 of subsection A (4) of section A of the comments to Section I of the Common Reporting Standard (CRS).

8. Are the institutions subject to reporting in July 2020 the financial accounts enabled by the implementation of the Reactiva Peru program as well as those generated for the payment of 25 % of the Pension Fund Administrators (AFP, by its Spanish acronyms) funds? 

No, since the information to be reported by the Financial Institutions Subject to Reporting in July 2020, is the one referring to the year 2018, regarding the pre-existing high value accounts of individuals as of 12.31.2018 and, for the year 2019, the new accounts of individuals and entities plus the pre-existing high value accounts of individuals as of 12.31.2019. 

Legal basis: Article 7 of Supreme Decree No. 256-2018-EF, Article 8 and sole transitory complementary provision of Superintendency Resolution No. 270-2019/SUNAT, Article 1 of Supreme Decree No. 088-2020-EF, and Superintendency Resolution No. 082-2020/SUNAT.  

9. Has any list of accounts been published that present a low risk of being used to evade taxes and that should not be reported in the CRS Financial Report? 

No, currently, SUNAT has not indicated a list of accounts with a low risk of being used to evade taxes.

However, there is a list of accounts that are excluded from the definition of financial account and therefore should not be considered as reportable accounts, which can be found at the following link: http://orientacion.sunat.gob.pe/7254-06-que-cuentas-financieras-estan-excluidas-de-reportarse

In order to comply with the reporting obligation that expires in July 2020, the Tax Administration will not indicate low-risk accounts referred to in subparagraph g) of subclause 17 of item C of Annex 1 of Supreme Decree No. 256-2019-EF.

Legal basis: Subparagraph g) subclause 17 of item C of Annex I of Supreme Decree No. 256-2018-EF. 

10. With respect to the operations carried out by the institutions subject to reporting, what are referred to as passive operations?

These are financial operations in which the companies of the financial system take funds from the public (customers) or from other entities or the Central Bank, which constitute debts of the referred entity and are recorded in the liabilities side of the balance sheet. These include deposit transactions, whether demand deposits (current account), time deposits (including certificates of deposit and bank certificates), savings, CTS, bond issues, debts with other companies in the financial system and loans and rediscounts granted by the Central Reserve Bank of Peru (BCRP), following the definition indicated in the Financial Reporting Information Recording Instructions-CRS.

Legal basis: Instructions: "Registration of Financial Report Information - CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

IV. REPORTABLE PERSONS

1. Who should be the owners of the reportable accounts?

An individual or entity that is resident in a reportable jurisdiction.

Legal basis: Subclause 3 of item D of Annex I of Supreme Decree No. 256-2018-EF. 

2. What is considered a reportable jurisdiction? 

Any jurisdiction with which Peru has an agreement in force that includes the obligation to provide financial information. SUNAT has published an updated list of these jurisdictions on its institutional portal.

To see the list of reportable jurisdictions that is published on the SUNAT Web Portal, you must access the item where the information is detailed in "11. Key information on how to prepare and submit the CRS Report". 

 Legal basis: Subclause 4 of item D of Annex I of Supreme Decree No. 256-2018-EF.

 3. What is considered a participating jurisdiction? 

That jurisdiction with which Peru has an agreement in force based on which such jurisdiction will provide the financial information.

Legal basis: Subclause 5 of item D of Annex I of Supreme Decree No. 256-2018-EF.

4. What does the term "legal entities" refer to? 

Refers to:   

• Autonomous equity managed by third parties that do not have legal personality.
• Contracts and other agreements permitted by current regulations in which two or more persons, who are temporarily associated, have a common right or interest to carry out a specific activity without forming a legal entity.
• Funds, mutual funds for investment in securities.
• Trust equity domiciled in Peru.

• Trust equity or trusts constituted or established abroad with administrator or protector or trustee domiciled in Peru.

• Consortiums, among others. 

Legal basis: Subclause 3 of item E of Annex I of Supreme Decree No. 256-2018-EF.

5. If an individual or legal person declares to have two or more countries of tax residence, must the entire balance and the entire income be reported to each country of tax residence? 

Yes, reportable financial institutions are required to aggregate the balance and total yields of all financial accounts opened by reportable persons (individuals or entities) and report it for each reportable jurisdiction, following the regulations. 

In addition, the Common Reporting Standard (CRS) states that for an account held by a Reportable Person for which more than one jurisdiction of residence has been identified, the total amount of the balance or value of the account should be reported as the total amounts paid or due on the account concerning each jurisdiction of residence of the Account Holder.

Legal Basis: Section VI, item C, subclause 1 and 2 of section VI of Annex II of Supreme Decree No. 256-2018-EF and subclause 13 of subsection A (4) of section A of the comments to Section I of the Common Reporting Standard (CRS). 

6. If the beneficial owners of a passive entity have tax residency in two or more countries, should the entity's information, as well as account balances and income, be reported to all countries of tax residency of the beneficial owners?

Yes, reportable financial institutions are required to aggregate the balance and total returns of all financial accounts opened by a passive NFE, which may be held by one or more individuals who qualify as beneficial owners and who are non-residents, and report it for each reportable jurisdiction, following the regulations. 

Similarly, the Common Reporting Standard (CRS) states that both the total amount of the balance or value of the account held by the Passive NFE and the total amounts paid or due on the account in respect of each jurisdiction of residence of the Controlling Person should be reported.

Legal basis: Subclause 2 of item C of section VI of Annex II of Supreme Decree No. 256-2018-EF and subclause 13 of subsection A (4) of section A of the comments to Section I of the Common Reporting Standard (CRS).  

7. If I have account holders residing in Peru, are they reportable persons? 

No, according to the provisions of Supreme Decree No. 256-2018-EF, the reportable person (individuals and/or entities) is the one residing in a reportable jurisdiction, i.e., not domiciled in Peru for tax purposes; therefore, if the account holder is resident in Peru, it is not applicable to declare it.   

To see the list of reportable jurisdictions that is published on the SUNAT Web Portal, you must access the item where the information of "11. Key information on how to prepare and submit the CRS Report". 

Legal basis: Subclause 3 of item D of Annex I of Supreme Decree No. 256-2018-EF.

8. In the case of individuals who are account holders and for determining whether or not they are reportable persons, should I take into account their nationality? 

No, in determining who is a reportable person, the residence for tax purposes should be considered, and not the nationality of the account holder.  

Legal basis: Subclause 3 of item D of Annex I of Supreme Decree No. 256-2018-EF.

9. What does the term “controlling person” refer to? 

In accordance with subclause 6 of Item D of Annex I of Supreme Decree No. 256-2018-EF, the term “controlling person” refers to individuals exercising control of an entity.

In the case of a trust: the settlor(s), trustee(s), and beneficiary(ies), as well as any other natural person exercising ultimate effective control of the trust.

In the case of a legal entity other than a trust, including a trust constituted abroad under foreign law sources, such term means any individual holding a position similar or equivalent to those mentioned in the preceding paragraph such as the settlor(s), the trustee(s), the protector(s) or administrator(s) if any, the beneficiary(ies), or classes of beneficiaries. If the settlor(s) of a trust is an entity, the financial institution must identify the controlling person(s) of the settlor and consider it as the controlling person of the trust.

Likewise, the term "controlling person" should be interpreted under the definition of beneficial owner referred to in Legislative Decree No. 1372 which regulates the obligation of legal persons and legal entities to report the identification of beneficial owners following the FATF recommendations issued as of the effective date of Supreme Decree No. 256-2018-EF.

Legal basis: Subclause 6 of item D of Annex I of Supreme Decree No. 256-2018-EF.

V. DEADLINE AND FORM OF FILING CRS FINANCIAL REPORT

1. What is the deadline for filing the “CRS Financial Report” informative affidavit with SUNAT?

The aforementioned declaration must be filed in the month of MAY, taking as due dates those established by Superintendency Resolution for the monthly liquidation tax obligations corresponding to the APRIL tax period of the taxable year following the one to which the return corresponds.

However, due to the nationwide Sanitary Emergency, as well as the mandatory social isolation (quarantine) due to the serious circumstances affecting the life of the Nation as a result of the COVID - 19 outbreak, by Supreme Decree No. 106-2021-EF, published on May 13, 2021, the deadline for the submission of the financial information corresponding to 2018 and 2020 was extended until July 31, 2021.

Subsequently, through Superintendency Resolution No. 069-2021/SUNAT, published on May 15, 2021, SUNAT established the maturity schedule for July 22 and 23, 2021, according to the last digit of the RUC, even and odd, respectively.

Legal basis: Supreme Decree No. 256-2018-EF (Regulations), Supreme Decree No. 369-2019-EF, Superintendency Resolution No. 270-2019/SUNAT, Supreme Decree No. 106-2021-EF, and Superintendency Resolution No. 069-2021/SUNAT.

2. How should I file the “CRS Financial Report” informative affidavit with SUNAT?

The person obliged to submit the declaration must use the IR AEOI system as of January 2, 2020, for which he/she must enter the electronic address: https://aeoi.sunat.gob.pe 

Legal basis: Article 4 and the only complementary provision amending Superintendency Resolution No. 270-2019/SUNAT.

3. Is it necessary to request any authorization from SUNAT to access the IR AEOI System? 

Yes, before submitting the CRS Report, the user must submit a request for access to the system, register the requested data, and record the following information:

i. Contact individual's data: name, surname, e-mail address, and telephone number.

ii. Attach pdf, doc, docx, png, jpg or bmp file, maximum 15 MB, containing in a single file:

  (i) identity document of the contact individual, and

  (ii) document issued by the financial institution subject to reporting, duly signed, in which it designates the contact individual.

iii. Select tax return type: CRS Report

iv. Indicate the taxpayer's company name and, optionally, the commercial name.

For further details, we recommend that you review item "5.2 Accessing the AEOI IR System" of the "Financial Report Information Registration - CRS" instructions.  

 4. How should I register the information in the "CRS Financial Report" informative affidavit? 

In order to file the informative affidavit, the technical specifications of the instructions "Registration of Financial Report Information - CRS" published in the SUNAT Web Portal must be followed, in the item where the information of "11. Key information on how to prepare and file the CRS Report".

Legal basis: Paragraph 4.2 of Article 4 of Superintendency Resolution No. 270-2019/SUNAT. 

5. Will SUNAT provide a template or model file for XML construction?? 

Yes, the XML model file is available on the SUNAT website, at the following link:

http://orientacion.sunat.gob.pe/7259-11-informacion-clave-de-como-preparar-y-presentar-el-reporte-ecr

6. Will SUNAT provide a list of accredited suppliers offering XML construction services to financial institutions?

No, SUNAT does not provide a list of suppliers that provide the XML construction service, this is at the discretion of the financial institution subject to report.

7. Is there any license or digital certificate required to be associated with the XML before uploading the reports to the IR-AEOI System? 

No, the IR-AEOI System does not request a license or digital certificate for uploading and/or sending the XML from the financial institution.

8. Shall the identification of the financial institution subject to reporting be placed on each line of the reportable accounts? 

No, according to what is indicated in the Instructions for Registration of Report Information - CRS, in section IV CRS - Body there is a field for the financial institution to be reported (Reporting FI) in which the financial institution that maintains the reported financial account or makes the reported payments is identified. 

Legal basis: Instructions: “Registration of Financial Report Information – CRS”

9. What information can be declared in the “TIN” field

According to art. 5 of Supreme Decree No. 256-2018-EF, the TIN is a piece of information that must be declared as part of the CRS Report. Likewise, subclause 5 of Item E of Annex I - Glossary of the aforementioned decree, states that TIN is the foreign tax identification number or its "functional equivalent" in the absence of a tax identification number.

The TIN is a number assigned by a jurisdiction to a natural person or entity and used to identify those subjects for the purpose of facilitating management by the corresponding tax authority; and while many jurisdictions use the TIN, others do not issue an identification number as such. However, these jurisdictions often use another highly reliable identifier, known as the "functional equivalent". By way of example, it may be noted that, in the case of individuals, the "functional equivalent" may be a social security number, an identity card/document and a residence card/ document; whereas, in the case of entities, a company/business registration code/number may be used.     

In that sense, if the reportable jurisdiction does not issue a TIN, but does issue a "functional equivalent", this should be reported by the Reporting Financial Institution. 

Legal basis: Articles 3 and 5 as well as subclause 5 of Item E of Annex I of Supreme Decree No. 256-2018-EF. Paragraphs 146 to 149 of the Comments to Section VIII of the CRS.

 10. Is the "warning" element mandatory, and what information should it contain?

No, the "warning" element is optional and is a free text field that allows for specific recommendations on the use of the CRS message content, e.g., if the reported data refer to a period other than the full reporting period, such data may be included in this field as a narrative description: e.g., "ten-month period".

Legal basis: Instructions: "Registration of Financial Report Information - CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

 11. For the "MessageRefID" element, what is the number of characters it must contain?

The "MessageRefID" element must contain 22 characters ordered as follows: 

• Issuing country code, single value "PE" allowed.
• Taxable year for which the information is being reported, in four digits. This value must match the year entered in the ReportingPeriod element.
• RUC number of the Financial Institution in Peru, registered in the Single Taxpayer Registration (RUC), without including the identification code and whose length is eleven (11) characters.
• Five-digit number. When the length of the number is less than five digits, fill in with leading zeros.

No data is recorded for the receiving country, therefore the IR-AEOI system performs this internally, in accordance with the provisions of the Instructions.

Legal basis: Instructions: "Registration of Financial Report Information - CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

12. Regarding the "DocRefID" element, is it the reportable account ID, and what is the correct number of characters it should contain?

No, this element corresponds to the unique identifier of the specific record (ReportingFI and AccountReport) and must contain 28 characters ordered as follows:

• The value filled in the MessageRefId element (22 characters).
• A unique identifier per file of six (6) digits. When the length of the number is less than six digits, fill with leading zeros.

Legal basis: Instructions: "Registration of Financial Report Information - CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT). 

13. Regarding the "Account Report" element, what does the definition of the "DocSpec" element that identifies the particular record within the CRS message being transmitted and allows the identification of records requiring correction refer to? what information should it contain? 

To identify the elements that need to be corrected, the top-level elements, <<ReportingFI>> or <<Account Report>>, include an element of type <<DocSpec_Type>>, which provides the necessary information to carry out the corrections. The element of this field is "DocSpec" which identifies the specific data within the CRS message being reported and allows the identification of files that need to be corrected.

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT). 

15. Regarding the "MessageType" element, what information should it contain: FATCA-CRS or CRS?

 This element specifies the type of message sent, and the only entry allowed in this field is "FATCA-CRS".

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

16. Regarding the “Contact” element, what information should it contain?

The user's contact information must be provided, therefore, it is suggested that they correspond to the person in charge of preparing the XML files of the CRS Report; since, in the event of inconsistencies before or after the automatic exchange of information - a commitment assumed with the OECD -, the contact individual designated by the system user will expedite the coordination of the correction of the observations presented.

 Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

17. Regarding the “MessageTypeIndic” element, what information should it contain?

 This element specifies the type of message to be sent. Allowed entries are:

 - CRS701= The message contains new information.

 - CRS702= The message contains corrections to previously sent information.

 - CRS703= The message indicates that there is no data to report.

 Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

 18. For the “ReportingPeriod” element, what is the date format 12/31/2019 or 2019-31-12?

This element identifies the last day of the calendar year for which the information is being reported, in YYYYY-MM-DD format. For example, if reporting information on accounts or payments made or made in the year 2019, the field should indicate: 2019-12-31.

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

19. Regarding the "ResCountryCode" element, which country should be entered for the account holder, in case he/she is taxed in Colombia but lives in Peru?

In order to determine what data is recorded in the "ResCountryCode" element, it must first be clear whether the information corresponds to a reportable person with a reportable account, as required by Supreme Decree No. 256-2018-EF. Accordingly, if the account holder is Non-Domiciled, he/she qualifies as a reportable person, but if he/she is Domiciled, he/she does NOT QUALIFY AS A REPORTABLE PERSON.

Legal basis: Supreme Decree No. 256-2018-EF (Annex I, Section D (2)).

20. What information should the “SendingCompanyIN” element contain? 

This element must contain the Tax Identification Number (TIN) of the Financial Institution or its functional equivalent in the absence of an identification number as such. 

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT). 

21. With respect to the “Address_Type” element, in which cases should the “AddressFix” be used and in which cases the “AddressFree”? where should the “CountrySubEntity” be used?

There are two options for entering the address in the CRS schema: AddressFix and AddressFree. The AddressFix should be used for all CRS reports unless the Reporting Financial Institution is unable to define the different parts of the account holder's address.

If Address Free is chosen, this option does not contain the “countrysubentity” field.

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

 22. Is there any element called “FilerCategory” and/or "FATCA606"?

 No, these elements do not correspond to the Common Reporting Standard (CRS).

 23. What information should the “DocTypeIndic” element contain?

 This element specifies the type of record to be sent. The allowed values are:

- OECD1= New Data

- OECD2= Corrected Data (data to be corrected)

- OECD3= Deletion of Data (data to be deleted)

 Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

 24. Regarding the “AccountNumber” element, what value should be used to identify savings and time deposit accounts?

 This element identifies the type of account number, therefore, for savings and time deposit accounts the value “OECD605= Other” should be used.

Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

25. With respect to the following elements of the CRS Financial Report, indicate which ones refer to individuals and/or entities:

26. What information should the “AccountBalance” element contain? 

This element identifies the balance and/or accumulated amounts, averages or highest amounts of the reported financial accounts, which will have to be analyzed on a case-by-case basis by the Financial Institutions for reporting purposes.

Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

27. Regarding the upload of information via XML file, is it possible for information to be added and/or modified under the manual option? After an XML file upload, is it possible to add new data and/or modify data manually through the web?

No, if the XML file has been uploaded and the CRS Financial Report has been filed, the option to amend and/or correct is through a rectifying declaration, for which purpose the new XML must be indicated in the DocTypeIndic OECD2 (corrected data) field.

Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

28. If you have a passive NFE incorporated in a reportable jurisdiction and it has Controlling Persons resident in a reportable jurisdiction, what is the value to be set in the AcctHolderType element?

The value corresponding to the AcctHolderType element is CRS101= Passive Non-Financial Entity - with one or more Controlling Persons who are themselves Reportable Persons, as appropriate.

Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

29. If you have a passive NFE incorporated in Peru and have Controlling Persons residing in a reportable jurisdiction, what is the value to be set in the AcctHolderType element?

In accordance with the definition of Reportable Account this is a financial account opened by one or more reportable persons or by a passive NFE with one or more controlling persons who are reportable persons, provided that it has been identified as such in application of the due diligence procedures.

In this sense, the value to be entered in the AcctHolderType element is CRS101= Passive Non-Financial Entity - with one or more Controlling Persons who are, in turn, Reportable Persons, according to the case in question.

Legal basis: Subclause 1 of item D of Annex I of Supreme Decree No. 256-2018-EF and the Instructions “Financial Reporting Information Registry -CRS” (paragraph 4.2 of Article 4 of Superintendency Resolution No. 270-2019/SUNAT).

30. How should decimals be entered in the IR-AEOI System?

Amounts should be entered in the appropriate currency and in amounts to two decimal places. For example, 1 million soles should be entered as 1000000.00. This applies to the AccountBalance and Payment Amounts elements.

Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

31. Regarding the option “verify XML file” in the IR-AEOI System, how can I use it to verify the XML file I have prepared?

You must take into account that the system has two stages, the first one is the testing stage in which the verification of the XML files is performed, and the second one is the presentation stage in which the system is currently in, therefore, at present the system will not allow you to verify the XML file.

It should also be noted that the system performs two types of validations before proceeding with the presentation of the information:

1. It checks the file format, when it does not have the proper format, it will issue an error message and ask the user to upload another file.
2. Verify the content of the file, when it is not correct, a pop-up window will appear showing an error message. Also, an XML model file has been posted on the Financial Report website for taxpayers to use as an example.

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

32. Regarding the size of the XML file, what is the maximum size of the XML file?

The system allows per XML file about 6000 reported accounts, which is a maximum of 15MB.

33. Regarding the size of the XML file, what happens if my file is larger than 15MB? How can I file the CRS Financial Report?

In case the file exceeds 15MB, you must split the files each with its own header, i.e. you must take into account that the Messageheader and ReportingFI elements are placed in the header of each file, and the MessageRefId for each file will be different.

You can find an example of the repetitive XML file here: https://orientacion.sunat.gob.pe/sites/default/files/archivos/Modelo_XML_repetitivo.zip

Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).  

34. In case I do not have information to declare, should I file the “CRS Financial Report” informative affidavit with SUNAT? 

It should be noted that, if after determining that it qualifies as a Financial Institution Subject to Report, under any of the four modalities (deposit, custody, investment, specific insurance) and after applying the due diligence procedure, it determines that there are no reportable persons or reportable accounts, it is obliged to communicate this fact to SUNAT through the CRS Financial Report with the option "Null Report"; for both years (2018 and 2019). 

In order to file the informative declaration, the technical specifications of the instructions "Registration of Financial Report Information - CRS" published in the SUNAT Web Portal must be followed in the item detailing the information of 11. Key information on how to prepare and file the CRS Report". 

Legal basis: Paragraph 4.2 of Article 4 of Superintendency Resolution No. 270-2019/SUNAT. 

35. Regarding the proof of submission of the Financial Report - CRS, if the proof of submission has not been sent to the e-mail address of the contact individual registered in the system, is there any option in the IR-AEOI System to view it?  

Yes, you must go to the "Reports" tab, select the "CRS Reports" submenu, where you can view the uploads made and select the specific upload for which you wish to view the proof of submission, then on the left side, select the "Documents" tab.

Legal basis: Instructions: "Financial Report Information Record -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

36. Regarding the Access Request to the IR-AEOI system, how long does SUNAT take to approve the access request?  

The time established for the attention to the request for access to the IR-AEOI system is a maximum of 2 working days.

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

37. Regarding the individual when registering the request for access to the IR-AEOI system, who is the individual to be registered in such request? 

According to the Financial Report Information Registration Instructions, it is suggested that the contact person correspond to the person in charge of preparing the XML files of the ECR Report; therefore, if inconsistencies arise before or after the automatic exchange of information - a commitment assumed with the OECD -, the contact individual, designated by the system user, will expedite the coordination of the correction of the observations presented. 

Legal basis: Instructions: “Financial Reporting Information Registry -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

38. Regarding the EOI Relationships, who is obliged to request affiliation on behalf of third parties? through what format is the request for affiliation submitted? and what is the maximum term for attending to the requests for affiliation?

In the case of mutual funds and mutual funds for investment in securities, the mutual fund management companies and/or investment fund management companies (managers) are obliged to make the linkage request.

Concerning securitization companies (trustees) that qualify as reportable financial institutions, they must be responsible for filing the CRS Financial Report for the trusts they manage.

The parties mentioned in the preceding paragraphs must attach in Excel format the list of the Funds and/or Trusts they manage (Company name and RUC No.), respectively, to the email SistemaIR-AEOI@sunat.gob.pe, and after 48 hours the request will be answered through the same means, indicating that the link has been made, with which they may file the CRS Financial Report declaration concerning the funds and/or trusts they manage, as the case may be.

Legal basis: Antepenultimate paragraph of subclause 6 of item A and subparagraph e) of subclause 1 of item B of Annex I of Supreme Decree No. 256-2018-EF. Instructions: “Financial Report Information Record -CRS” (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

 39. Regarding the XML in the case that the management company submits the information on behalf of the funds and/or trusts managed, is there any example in which it is possible to identify the elements that are modified in the XML? 

Yes, the following is an example of the elements that are modified in the XML. 

Example: 

RUC1: 20156789900 Management Company

RUC2: 20500234543 Investment Fund X 

Fields that vary in the XML: 

1. SendingEntity=  20156789900 (Management Company) 

2. TIN for Reporting Entity =  20500234543 (Investment Fund X) 

3. In the Message RefID =  20156789900 ((Administering Company) 

4. DocRefId=  20156789900 (Management Company) 

The other fields of the XML are maintained with the reporting party's information, i.e. the fund. 

Legal basis: Instructions: "Financial Report Information Record -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

 40. Regarding access to the IR-AEOI System portal, what is the access route to it? 

The only access route to the IR-AEOI portal is through the following link: https://aeoi.sunat.gob.pe

Legal basis: Subparagraph a) of paragraph 4.1 of article 4 of Superintendency Resolution No. 270-2019/SUNAT.

41. Regarding the registration of undocumented accounts, how are undocumented accounts registered? 

To record undocumented accounts, the code "PE" shall be used, since no address is available. Since the address requires another field to be completed, the expression "undocumented" may be used in the "AddressFree" element instead of the address. 

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

42. Regarding some report elements, what information is placed in the tax residence element, account balance, payment type option and payment amount?

Below is a description of what to place in the elements: 

• Tax residence: The country code of the reportable jurisdiction is recorded, never Peru (PE).

• Account balance: The total amount of the account at the end of the fiscal year of the reporting year is entered, without including any type of discounts.

• Payment Type: Specific payment types are listed below: 

CRS501= Dividends, 

CRS502 = Interest, 

CRS503= Gross Profit/Redemptions. 

CRS504= Other - CRS (Example: other income generated in relation to assets booked on account). 

• Amount of payment: The amount of the net yield, i.e. dividend, interest, profit or other, excluding principal.

 Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT). 

43. If you have a passive NFE incorporated in a reportable jurisdiction and it does NOT have Controlling Persons resident in a reportable jurisdiction, what is the value to be set in the AcctHolderType element? 

The value corresponding to the AcctHolderType element is CRS103= Passive non-financial entity (NFE) that is a reportable person under the CRS, according to the case presented. 

Legal basis: Instructions: "Financial Reporting Information Registry -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT). 

44. With respect to EOI Relationships and financial institutions subject to reporting, how should they register the funds and/or trusts they manage that do not have a RUC? 

In case the fund and/or trust managed by the International Financial Reporting Standards (IFRS) does not have a RUC, it must indicate an 11-digit code (only numbers are allowed, not letters or characters), which will be composed as follows: 

[XXXXXXX] à 7 first numbers of the RUC of the IFRS. 

[XXXX] à 4 last digits will be the correlative number of the Fund and/or trust, assigned by the IFRS. 

 Legal basis: Instructions: "Financial Report Information Record -CRS" (paragraph 4.2 of article 4 of Superintendency Resolution No. 270-2019/SUNAT).

  VI. DUE DILIGENCE PROCEDURES

1. What procedures should financial institutions subject to reporting apply with respect to pre-existing accounts of individuals? 

The following procedures are applicable to identify reportable accounts among the pre-existing accounts of individuals:    

a) LOW value accounts 

• Identify the current address of the individual who holds the account, in order to determine whether the account holder is a reportable person.
• Otherwise, you should review the searchable data electronically.
• If the electronic data search reveals no address, no further action is required unless there is a change in circumstances that determines the existence of one or more indicia associated with the account, or the account becomes a high value account.

b) HIGH value accounts

In addition to the procedures applicable to low-value accounts, the following procedures should be applied: 

• Review all electronically searchable data available to you for any indications of linkage.
• Review the customer's current master file.
• Review the documents associated with the account obtained by said institution during the last five (5) years.
• Consultation with the financial advisor

Legal Basis: Items A to D of Section II of Annex II of Supreme Decree No. 256-2018-EF.

2. Until when are pre-existing accounts of individuals reportable?

Until the account holder ceases to be a reportable person.

Legal Basis: Item E of Section II of Annex II of Supreme Decree No. 256-2018-EF.

3. What procedures should financial institutions subject to reporting apply with respect to new accounts of individuals?

At the time the account is opened, the financial institution subject to reporting must obtain a CRS Self-Certification from the account holder (individual or entity), which allows to determine the residence for tax purposes of the account holder; additionally, in the case of entities, if it has a "Controlling Person", it must indicate it.

Legal Basis: Section III of Annex II of Supreme Decree No. 256-2018-EF.

 4. Which pre-existing entity accounts are not subject to review, identification or reporting as a reportable account? 

Those pre-existing accounts of entities with a balance and/or accumulated, average or highest amount and yield generated from the account that does not exceed two hundred and fifty thousand dollars (US$ 250 000) as of December 31, 2018, that is until their balance and/or accumulated, average or highest amount and yield generated from the account exceeds such amount as of the last day of any subsequent calendar year.

Legal Basis: Item A of Section IV of Annex II of Supreme Decree No. 256-2018-EF.

5. What procedures should financial institutions subject to reporting apply with respect to pre-existing entity accounts? 

• Review information maintained for regulatory or customer relationship purposes to determine whether such information indicates that the account holder is a resident of a reportable jurisdiction.
• Determine whether the account holder is a passive NFE by obtaining an Affidavit from the account holder.
• Determine whether the person exercising control of a passive NFE is a reportable person.
• If applicable, additional review procedures for high value accounts should be applied. 

Legal Basis: Items B to D of Section IV of Annex II of Supreme Decree No. 256-2018-EF.

 6. What procedures should financial institutions subject to reporting apply with respect to new entity accounts? 

At the time the account is opened, the reporting financial institution must obtain an Affidavit from the account holder to determine the account holder's residence for tax purposes. 

Legal Basis: Section V of Annex II of Supreme Decree No. 256-2018-EF.

 7. Does SUNAT have any material or presentation explaining the topic of Financial Reporting - CRS?

Yes, you can download the Financial Report - CRS information material by clicking here:

 8. What is the treatment for accounts of individuals and/or legal entities that refuse to complete the tax residency affidavit? In which of the following cases should the client's accounts be included in the CRS Financial Report and which country's tax residency should be included in the report?  

a) The client refuses to provide information but does not show evidence of having a tax residence other than Peru.

b) The customer refuses to provide information and presents any of the indications established in the due diligence procedure (address, bank transfers, etc.). 

In accordance with the provisions of Section V of Annex II of Supreme Decree 256-2018-EF, Financial Institutions Subject to Reporting must obtain an affidavit - self-certification - from the account holder or documentary evidence to determine his/her residence(s) for tax purposes. However, in the hypothetical case that the client of the financial institution subject to reporting refuses to sign the affidavit, the institution must have internal procedures and/or policies to ensure compliance with due process in this context.

About the two cases described -a and b-, the account that qualifies as reportable is the one described in subsection b; therefore the account holder is a reportable person, to the extent that there are indications that he/she is not a resident in the country for tax purposes and resides in a reportable jurisdiction; while in subsection a, the account holder does not qualify as a reportable person, therefore there are indications that he/she is a resident in the country for tax purposes.

Legal basis: Section V of Annex II of Supreme Decree No. 256-2018-EF. 

9. What procedure should be followed if the client provides a tax residency affidavit (self-certification form) that contradicts the evidence detected in the financial institution's physical and/or electronic files?

Following the Common Reporting Standard (CRS), it is indicated that when the institutions subject to report are not certain of the content of the self-certification, they must obtain a valid self-certification that determines the residence(s), for tax purposes, of the Account Holder, or an explanation and reasonable documents that prove the validity of the same, and they must keep the documentary support of said procedure.

Legal basis: Subclause 3.1 of Article 3 of Supreme Decree No. 256-2018-EF and section 17 of the Comments to Section III, section 12 of the comments to Section IV, and sections 2 and 3 of the Comments to Section VII of the Common Reporting Standard (CRS).

10. What is an undocumented account, and should the undocumented account be disclosed? What due diligence procedures should be applied with respect to the undocumented account? Is the undocumented account monitored by SUNAT?

The undocumented account is a pre-existing account of a individual that meets very specific requirements, indicating that there is no information available to indicate the residence of the account holder. The assumptions in which an account will be declared as undocumented are contemplated in subclause 5 of Item B and subparagraph c) of subclause 5 of Item C of Section II of Annex II of Supreme Decree No. 256-2018-EF.

In the case of a pre-existing low value individual account, once it is established that the account is undocumented, the Reporting Financial Institution is not obliged to repeat the procedure stipulated in subclause 5 of Item B of Section II of Annex II of Supreme Decree No. 256-2018-EF to the same account in subsequent years as long as there is no change of circumstances resulting in the association of one or more indications to that account, or such account acquires the status of high value account. However, the low-value account should be reported as an undocumented account until it ceases to be so.

In the case of a pre-existing high value individual account, once it is established that the account is not documented, following subclause 7 of Item C of Section II of Annex II of Supreme Decree No. 256-2018-EF, the Financial Institution Subject to Reporting must again apply the additional review procedures described in said item, annually, until said account is no longer considered as not documented. Whereupon, the high value account shall be reported as an undocumented account until it ceases to be so.

SUNAT supervises and follows up on undocumented accounts because such qualification could result from the application of inadequate procedures by the Reporting Financial Institution in order to obtain the necessary information to determine the residence of the account holder, or it could be due to the failure of the account holder of the account to comply with its obligations to provide information to the Reporting Financial Institution.

Legal basis: Article 8 and subclause 5 of Item B and subparagraph c) of subclause 5 of Item C of Section II of Annex II of Supreme Decree No. 256-2018-EF. Paragraphs 28, 29, 45 and 48 of the Comments to Section III and paragraphs 11, 13 and 14 of the Comments to Section IX of the CRS.

11. Who is required to file affidavits as part of due diligence procedures? Are the financial institutions subject to reporting required to conduct a reasonableness analysis of the affidavits?

Account holders and persons exercising control must provide information through the submission of an affidavit, in the cases contemplated in Section II, III, IV and V of Annex II of Supreme Decree No. 256-2018-EF, to the Financial Institutions Subject to Reporting.

The aforementioned affidavit (referred to as "self-certification" in the CRS) constitutes a certification by the account holder and control person as to its status and any other information that the Reporting Financial Institution may require, within reasonable limits, to comply with its reporting and due diligence obligations.

It should be noted that, according to Item A of Section VI of Annex II of Supreme Decree No. 256-2018-EF, the Financial Institution Subject to Reporting may not rely on sworn statements or documentary evidence when it knows or has reason to know that these are incorrect or unreliable. Whereby, this means that such institutions must perform an analysis of the reasonableness of, among others, the affidavits submitted by the account holders and persons exercising control.

For example, in the specific case of new accounts of individuals and entities, the reasonableness of such declaration must be confirmed on the day of account opening, based on the information obtained in connection with the opening of the account, including any documents obtained in application of the AML/KYC procedures. It is understood that the reasonableness has been confirmed when, at the opening of the account and after examining the information, it does not know or may come to know that it is incorrect or unreliable.

Legal basis: Article 8 and Item A of Section VI of Annex II of Supreme Decree No. 256-2018-EF. Paragraphs 7, 22, 23 and 24 of the Comments to Section IV, paragraphs 14, 15, 16, 17, 20, 22 and 23 of the Comments to Section V, paragraphs 11, 12, 13, 14 and 15 of the Comments to Section VI and paragraphs 2, 3 and 4 of the Comments to Section VII of the CRS.

VII. INFRACTIONS AND PENALTIES

1. What is the penalty for not complying with the filing of the “CRS Financial Report” informative affidavit? 

The penalty for not filing the “CRS Financial Report” within the established deadlines is a fine equal to 0.6 % of the net income, which cannot be less than 10 % UIT (Peruvian Tax Unit, 440 soles) or more than 25 UIT (110,000 soles).

It is worth mentioning that this penalty is 100 % gradual if it is voluntarily corrected. 

Legal Basis: Subclause 2 of article 176 of the Tax Code, Table I of the Tax Code, and Annex II of Superintendency Resolution No. 063-2007/SUNAT.

VIII. FREQUENTLY ASKED QUESTIONS ANSWERED ON THE OECD WEBSITE

https://orientacion.sunat.gob.pe/sites/default/files/inline-files/Traduccion_Preguntas%20frecuentes_OECD_Junio2020_0.pdf

https://orientacion.sunat.gob.pe/sites/default/files/inline-files/CRS-related-FAQs_3_0.pdf