Regulations On The Standard For Automatic Exchange Of Financial Account Information In Tax Matters Published

 1.               The Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016 (“Regulations”) were published on 2 December 2016. A copy of the Regulations can be found on the Inland Revenue Authority of Singapore’s (IRAS) website (https://www.iras.gov.sg/IRASHome/CRS/).

 2.               The Regulations allow Singapore to implement the Standard for Automatic Exchange of Financial Account Information in Tax Matters (“AEOI”), also known as the Common Reporting Standard (“CRS”), with effect from 1 January 2017[1].

 3.               The CRS is an internationally agreed standard for AEOI, endorsed by the OECD and the Global Forum for Transparency and Exchange of Information for Tax Purposes.  The CRS sets out the financial account information to be exchanged, the financial institutions (“FIs”) required to report, the different types of accounts and taxpayers covered, as well as the customer due diligence procedures to be followed by the financial institutions. More than 100 jurisdictions, including major financial centres such as Hong Kong, Luxembourg and Switzerland, have endorsed the CRS and will commence AEOI in either 2017 or 2018. Singapore will do so in 2018. Reporting Singaporean FIs will be required to transmit to IRAS the CRS information of their account holders who are tax residents of jurisdictions that Singapore has a Competent Authority Agreement (“CAA”) for CRS with.

 

Footnote:

[1] The Regulations will require all financial institutions to put in place necessary processes and systems to collect CRS information from all non-Singapore tax resident account holders (known as the “Wider Approach”) from  1 January 2017.  Such collection of information by FIs is necessary in order for FIs to submit the required information to IRAS in 2018, for subsequent exchange under the CRS. This timeline is in accordance with Singapore’s commitment to commence first exchange of information under the CRS in 2018.

 Ministry of Finance


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Last Updated on February 13, 2017
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