IEIM401885 - Financial Accounts: Excluded Accounts: Capital Contribution Accounts
Excluded Accounts: Capital Contribution Accounts
From 1 January 2026, capital contribution accounts, set up for the purpose of blocking funds for a limited period of time pending the incorporation of a new company or pending a capital increase, are Excluded Accounts provided that certain requirements are met. These requirements are as follows:
i) the account is used exclusively to deposit capital that is to be used for the purpose of the foundation or capital increase of a company, as prescribed by law;
ii) any amounts held in the account are blocked until the Reporting Financial Institution obtains an independent confirmation regarding the foundation or capital increase;
iii) the account is closed or transformed into an account in the name of the company after the foundation or capital increase;
iv) any repayments resulting from a failed foundation or capital increase, net of service provider and similar fees, are made solely to the persons who contributed the amounts; and
v) the account has not been established more than 12 months ago.
Example:
A capital contribution account meeting the above requirements is opened by a reportable Account Holder on 1 September 2026, pending a capital increase of a company. It is still open at 31 December 2026. The account is an Excluded Account and therefore not reportable in respect of the calendar year 2026. At 31 December 2027 the account is still open and has not been transformed into an account in the name of the company. Since the account has been open longer than 12 months, it is no longer Excluded and is reportable for the calendar year 2027.