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OECD: Technology to support exchange of tax information

OECD: Technology to support exchange of tax information

The Organisation for Economic Cooperation and Development (OECD) today announced the release of IT-formats and guidance to support the technical implementation of the OECD “Treaty Relief and Compliance Enhancement” (TRACE) initiative, as well as to facilitate the broader use of the OECD common transmission system (CTS) for the exchange of information between tax administrations.


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As explained in the OECD release, TRACE is a standardised system that allows the claiming of withholding tax relief at source on portfolio investments. It aims to remove the administrative barriers that affect the ability of portfolio investors to claim the reduced rates of withholding tax.

The standardised IT-format is being released to support the reporting of information under the TRACE AI system—the TRACE XML Schema and User Guide.

Common transmission system

The OECD also today released a dedicated XML Schema and User Guide, developed to allow tax administrations to provide feedback to a sender on errors encountered with respect to tax information exchanged through the CTS.

The CTS was launched in 2017 and currently supports the automatic exchange of common reporting standard (CRS) information, country-by-country reports and tax rulings by over 100 jurisdictions.

Beginning in the autumn 2020, the CTS will also support a wide range of other exchanges, including on-request and spontaneous exchanges, as well as the transmission of information pertaining to mutual agreement procedure, TRACE and other forms of co-operation. 

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