On or about 23 July 2019, the Inland Revenue Authority of Singapore (IRAS) has published the e-Tax Guide on the Common Reporting Standard (CRS).
The CRS is an internationally agreed standard for the automatic exchange of financial account information between jurisdictions for tax purposes, to better combat tax evasion and ensure tax compliance.
Singapore has committed to implement the CRS, with the first exchange of financial account information relating to calendar year 2017 having taken place in September 2018.
This guide is to read with IRAS-issued CRS FAQs and other guidance on the IRAS website, provides guidance to Singaporean Financial Institutions (SGFIs) in understanding the CRS framework and their CRS compliance obligations.
The Reporting SGFIs are expected to rely closely on OECD guidance, such as the OECD CRS Commentary, the CRS Implementation Handbook (Second Edition) and the OECD CRS-related FAQs, unless they are inconsistent with Singapore’s implementation of the Wider Approach under the international standard.
Under the Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016 (CRS Regulations), a Reporting SGFI is required to conduct due diligence on all Financial Accounts it maintains.
With respect to each of such Financial Account, the Reporting SGFI is required to:
- determine the tax residence(s) of its Account Holder and, if the Account Holder is a Passive Non-Financial Entity (NFE), the Controlling Persons of the Passive NFE; and
- report to the IRAS on an annual basis, the particulars and account information of that Account Holder, and where applicable, the particulars of the Controlling Persons that are tax residents of jurisdictions that Singapore has a Competent Authority Agreement (CAA) for CRS with.
This reporting is to be done by 31 May of the year following the calendar year during which the Reportable Accounts were maintained.
The e-Tax guide covers:
- the types of entities that are regarded as Financial Institutions (FIs), Reporting SGFIs, Non-Reporting SGFIs and NFEs under the CRS
- the types of in-scope Accounts (Financial Accounts) and Excluded Accounts
- the due diligence procedures required to be applied by Reporting SGFIs to identify Reportable Accounts
- the registration requirements of Reporting SGFIs, and
- the information to be reported by Reporting SGFIs.
Source: IRAS website, 23 July 2019