The Common Reporting Standard
Updated on Friday 21st September 2018
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What is the Common Reporting Standard?
The Common reporting Standard is an international agreement to automatically exchange financial account information. This is done for tax purposes and it is reciprocal between jurisdictions who have implemented the Standards. The Common Reporting Standard (CRS), or the Standard for Automatic Exchange of Financial Account Information was developed by the OECD.
How are jurisdictions responsible?
The jurisdictions that follow the Standards are asked to gather information from the financial institutions that operate on their territory and automatically exchange the gathered information with the other jurisdictions. This is done on a yearly basis.
Offshore incorporation that related to creating an offshore legal entity that is engaged in delivering financial services can be subject to the CRS. One of our agents can detail.
What information is typically required?
The type of legal entity, personal information about the company directors as well as the tax identification number are items that are typically verified.
What is the reported tax status?
According to the Common Reporting Standard, tax authorities ask financial institutions in a jurisdiction to both collect and report information on the tax status of the customers. In some cases, individuals who are tax residents outside of the jurisdiction where they hold their accounts can be reported. One of our agents can detail this particularity for those investors who are interested in offshore bank account creation.
What countries have signed the CRS?
Some of the countries that have signed the Common Reporting Standards for the automatic exchange of financial account information are the following: the Cayman Islands, Belize, Bermuda, Ireland, Cyprus, Panama, Hong Kong, Malta, Seychelles, Singapore, and many others. As of August 2018, there were 103 signatory jurisdictions.
One of our agents who specialize in offshore company formation can give you detailed information about the financial account information that needs to be exchanged, the types of financial institutions that are required to do so as well as the taxpayers covered by the CRS.
For more information, as well as offshore incorporation services, please contact us.