The Common Reporting Standard (CRS) is an international framework developed by the Organisation for Economic Co-operation and Development (OECD) in 2014.
Its main purpose is to combat tax evasion by requiring financial institutions (like banks, brokers, investment funds, and insurance companies) to collect and report information about accounts held by non-residents. This information is then automatically exchanged between participating countries’ tax authorities on an annual basis.
Key Points about CRS:
-
Who reports: Financial institutions such as banks, custodians, insurance companies, and investment entities.
-
What is reported:
-
Name, address, tax identification number (TIN), and date/place of birth of the account holder.
-
Account balance/value.
-
Income from interest, dividends, sales of financial assets, and other relevant financial information.
-
-
Who is covered: Both individuals and entities (like companies, partnerships, and trusts).
-
Global reach: Over 100 jurisdictions (including Singapore) have committed to CRS, making it a truly worldwide standard.
-
Difference from FATCA: CRS is similar to the U.S. FATCA (Foreign Account Tax Compliance Act), but CRS is multilateral (many countries sharing info with each other), while FATCA is U.S.-centric.