The Common Reporting Standard Acts as a guide for financial institutions which mainly outlines the following:
The common reporting standard published by the OECD can be found on this link.
Reportable Financial Institutions are required to carry out due diligence procedures on the accounts held by the institutions to identify the accounts that has to be reported under CRS. This process shall be carried out at the end of the reportable year. Due diligence procedures are detailed in the CRS for both Individual accounts and Entity accounts.
An account that is maintained by a financial institution as of 31 December 2020 will be considered as a pre-existing account and an account that is opened on or after 1 January 2021 will be a new account for the purpose of CRS. Financial institutions are required to carry out necessary due diligence for both types of accounts as stated in the standard. Review of pre-existing individual and entity accounts for the year 2021 must be completed by 31 December 2021.
Financial institutions registered under Common Reporting Standard shall submit CRS notification files (including nil notification files, if applicable) electronically via MIRA Common Reporting Standards (CRS) System.
Registered financial institutions will be obligated to file the information with MIRA before 31 July of the subsequent year. The first reporting year for CRS is from 1 January 2021 – 31 December 2021. All reporting financial institutions are obligated to submit CRS returns, detailing all the reportable accounts for the year 2021 by 31 July 2022.
Penalties for failure to provide information to MIRA shall be determined under Section 65 of the Tax Administration Act.
For further clarification or assistance, please email MIRA at [email protected]