Common Reporting Standard
Common Reporting Standard (CRS) is regulation developed by the Organisation for Economic Co-operation and Development OECD in 2014 for the automatic exchange of information between partner countries to fight tax evasion. It applies to each country that has committed to the CRS regulation and transposed it into its law.
CRS requires Financial Institutions (FIs) located in a country involved in the CRS regulation to identify non-resident clients and report them to their local tax administrations located in a country involved in the CRS.
What this mean for Kleinwort Hambros Clients?
The implementation of automatic exchange of information is based on the combined action:
- Account holders who must declare their tax residence to determine whether or not they are considered as "non-residents" via self-certification in the following cases:
- for any onboarding client,
- for any opening of a new account or subscription of CRS-eligible products for an existing client, provided that there is not already a valid self-certification for this client,
- for any change in circumstances having a tax impact (e.g. change in tax residence or status).
- Financial institutions that must report annually to their local tax authority’s "non-resident" clients, their account balances and the financial income they paid to them over the year, the tax authorities of the participating countries that transmit this information to the tax authorities of the country of residence for tax purposes of the client who is the subject of this declaration.
- Clients who would not provide the documents required by the CRS would be declared "undocumented" with their local tax authorities and would be subject to sanctions under local law.
Please find here the necessary forms: