As mentioned in my article of 11.9.2020, the AEOI Act was amended as of 1.1.2021 and thus the possibility to classify a structure as a financial institution (“FI”) by so-called opt-in, even though the actual requirements are not met and the structure would in principle have to be considered a passive non-financial entity (“pNFE”), has been abolished.
Existing structures that are classified as FI via opt-in must reclassify themselves by 31 December 2021 at the latest and (possibly) also notify the bank of the changed classification. Nevertheless, structures that have to change their classification from FI to pNFE status will still be subject to the corresponding reporting obligations for 2020 or 2021. Involved banks will only take over reporting for the 2022 reporting period.
Fortunately, according to current knowledge and unofficial information, the tax administration is not expected to change the existing AEOI leaflet. Therefore, if and to the extent that a fiduciary company can (continue to) classify itself as an FI, it may be still be possible for a foundation or a trust, under certain circumstances and most likely after some adjustments to the asset management, to continue to be classified as an FI.
It is advisable to deal with this as soon as possible – we will be happy to provide you with advice and assistance in this regard.