What is CRS?
The Common Reporting Standard (CRS) is a global standard for the automatic exchange of financial account information. It was developed by the Organisation for Economic Cooperation and Development (OECD).
Why is CRS being introduced?
CRS is designed to prevent offshore tax evasion. It gives participating countries transparency on the financial assets held offshore by their residents.
How does CRS work?
CRS requires financial institutions to identify customer tax residencies and report financial accounts held directly or indirectly by foreign tax residents to local tax authorities. In certain cases, this also extends to so called “controlling persons”: the (deemed) ultimate beneficial owners. CRS also requires tax authorities (in participating countries) to exchange this information.
Which countries have committed?
More than 100 countries have committed to CRS, including all EU member states and major financial centres around the world. The US has not committed to CRS, because it had already committed to the automatic exchange of information under pre-existing FATCA inter-governmental agreements.
Who does it apply to?
The reporting under CRS applies to both individuals and legal entities.
What is ING’s policy?
ING’s policy is to comply with CRS.
What is ING required to do?
In participating countries, ING is required to:
- Identify customer tax residencies;
- Perform ongoing due diligence and monitoring; and
- Report relevant financial accounts to the local tax authority.
What does it mean for customers?
Where needed, ING will contact impacted customers and request they complete a self-certification form that includes at least their tax residency. Customers are responsible for completing the self-certification and informing ING of changes that may impact their CRS classification. More information on the tax residency can be found on the OECD webpage on tax residency.
What is a TIN?
TIN stands for Tax Identification Number. For each tax residence declared in the self-certification, a TIN is requested to be completed as well. What qualifies as a TIN differs per jurisdiction. For an overview of what is considered to be a TIN – or equivalent – per jurisdiction, please refer to the OECD webpage on TINs.
For further information on CRS, refer to the OECD website, your local tax authority, or your tax advisor.