Financial market participants’ submission of data to the State Tax Inspectorate

Novian Systems has created solution, which is intended for finance market participants and allows them to comfortably provide data to the country’s State tax inspectorate Taxes and related data exchange sub-system TIES self-service portal (STI TIES).

Financial market participants (FMP) operating in Lithuania are required to provide data at the STI TIES portal annually.

Various questions arise during this process, and a solution for preparation and submission of CRS, DAC, FATCA, MAĮ55 data packets developed by Novian Systems allows to solve them in an easier way.

It allows the FMP to prepare mandatory data for submission to the State Tax Inspectorate (STI) in advance, starting with the preparation of data in Excel files and ending with the preparation of an encrypted data package according to STI rules.

What opportunities does the solution provide?

The solution proposed by Novian Systems is an application designed for financial market participants (FMP) to fulfill the obligation to the tax authorities by providing the following data:

  • MAI55-SLIK: includes data on the balance of accounts existing on 31 December of the calendar year to be submitted by the FMP pursuant to Article 55 of the Tax Administration Act (TAA) to the STI;
  • MAI55-SIPL: includes data on the amounts of revenue received in the accounts during the calendar year to be submitted by the FMP to the STI pursuant to Article 55 of the TAA;
  • CRS-DAC2: includes a set of data obtained from the Lithuanian FMP, on reportable persons and related financial accounts data. Data is collected in accordance with the rules for the provision of information necessary for the implementation of the automatic exchange of information on financial accounts (approved by the 25 November 2015 Order of the Head of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania No. VA-102);
  • GDR-ISMOK: includes data on life insurance benefits paid to individuals;
  • DAC4: includes reports by groups of multinational enterprises in accordance with CbC exchange requirements and Council Directive 2016/881/EU (DAC4).
  • FATCA: includes a data set according to the USAForeign Account Tax Compliance Act.
  • MMR-SASK: includes data about opened and closed accounts of all types, safe deposit box rent, person’s representatives and beneficiaries.

Advantages of the solution

The main advantage of the solution is the cost and time savings, because:

  • Accelerates data submission;
  • The time spent to correct errors is shortened;
  • The costs resulting from irregularities are reduced.

How does the application work?

  1. According to the instructions provided, the FMP installs the application in the computer workplace;
  2. The FMP prepares a file of the data provided to the STI in a specified format. This can be done by:
    • filling data in a given Excel template and subsequently saving it in CSV format;
    • creating a special report in the internal FMP application;
    • preparing a data XML file by exporting it from your own information system.
  3. FMP uploads the CSV or XML file to the application, clicks the “Pack” button.
  4. The application creates a data provision file, prepares an accompanying document, packs everything, encodes and provides the user with a package suitable for providing the STI.
  5. The package prepared by the FMP is uploaded to the STI TIES portal and is then waiting for the STI response.
  6. FMP uploads the response received on the STI TIES portal to the application and presses the “Unpack” button.
  7. The application decodes, unpacks the response, and the FMP gets the STI response.
  8. If it is necessary to revise the data by the STI, this process is repeated from the second step as many times as necessary to provide correct data.