FATCA, CRS and DAC2

Current issues

Starting in August 2020, the Tax Administration imposes negligence penalties on parties that have failed to meet their reporting obligation for 2019. Negligence penalties are imposed separately for FATCA annual reports and CRS/DAC2 annual reports. A penalty may be imposed if an annual report is missing, was filed late or is incorrect, or if the party with the reporting obligation has failed to reply to requests for information about the report. The amount of the penalty is based on the guidance for third-party filers’ negligence penalties in 2019 (available in Finnish and Swedish).

The filing period of FATCA and CRS/DAC2 annual information returns for 2019 has ended. Correction returns can be filed as of 1 September. You can find more information about the filing of correction returns in the technical guidance.

Note to entities that are ending their operations: an entity that is terminating its operations must deregister from the FATCA register of the US Internal Revenue Service (IRS). When a GIIN number is terminated in the IRS FATCA register, the related FATCA account will be automatically closed in the Finnish Tax Administration’s system. The reporting obligation will end at the end of the year when the GIIN is terminated.

General information

Based on international commitments, Finland is involved in the automatic exchange of information to other countries, and receives such information in return. Exchange of information enhances tax surveillance and combats tax evasion.

Annual information return

Financial institutions based in Finland must send the information listed in the Foreign Account Tax Compliance Act (FATCA) to the Tax Administration once a year. See guidance for filing the annual information return.