A foreign trust with a Swiss trustee does not have a Swiss registration number and can, therefore, not be directly registered on the Swiss AEoI portal. The Industry has been struggling to find a practical solution to this problem. This proved impossible because the Swiss portal lacks the technical requirements to enable registration as TDT and because authorities believe that shifting TDT registrations is an impossible thing to perform. Thus, after long and tough negotiations, the Federal Tax Administration (FTA) opted for a compromise by publishing a FAQ on December 13th (i.e. it is the FTA’s decision, not that of the AEoI Qualification Committee).

 

Accordingly, the FTA have decided to solve this issue by applying the Trustee Documented Trust (TDT) concept, where the trust is a non-reporting FI, and the trustee of the trust is itself a reporting FI and reports all the information required on behalf of the trust. Here’s the link to their FAQ in French, German and Italian.

 

Practically this means that trustees are supposed to register all in-scope trusts as TDTs on the Swiss portal, by adding the prefix “TDT” to the trust’s name.