The Ministry of Finance ("MOF"), Monetary Authority of Singapore ("MAS") and the Inland Revenue Authority of Singapore ("IRAS") have proposed regulations to 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. This is necessary in order for Singapore to meet her international commitment to commence AEOI under the CRS in 2018.
The CRS is an internationally agreed standard for Automatic Exchange Of Information (AEOI), endorsed by OECD (Organization for Economic Cooperation and Development) and Global Forum (GF) for transparency and Exchange of Information for Tax Purposes.
AEOI refers to the regular exchange of information between jurisdictions for tax purposes, with the objective of detecting and deterring tax evasion by taxpayers through the use of offshore financial accounts. It typically pertains to information relating to accounts maintained by taxpayers in financial institutions located in a jurisdiction outside of their own.
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 FIs.
Singapore will adopt the wider approach i.e. All FIs are to collect and retain CRS information and the information required to be collected include:
- Jurisdiction of Residence
- Taxpayer Identification Number (TIN)
- Date of Birth
- Place of Birth