What is the Common Reporting Standard (“CRS”)?
CRS is an international standard for exchange of financial account information between jurisdictions. It was introduced to combat tax evasion and protect the integrity of tax systems. Under CRS, Singapore based financial institutions, including Etiqa Insurance Pte. Ltd. (“Etiqa”), are required to obtain information and supporting documents (where applicable) on the tax residency(ies) of customers with effect from 1 January 2017. Information relating to insurance policy(ies) of non-Singaporean tax residents would be transmitted to Inland Revenue Authority of Singapore (“IRAS”) and exchanged with the national tax authority of the country where you are a tax resident.
Who is affected?
The CRS affects all Etiqa customers (Individuals and Entities), but the extent of impact depends on:
- the type of insurance policy(ies) you have with us
- your tax residency, i.e. where you live or operate as a business
If you have any questions regarding your tax residency, please refer to the rules governing tax residence that have been published by each national tax authority on the Organisation for Economic Cooperation and Development (“OECD”) website (http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/). You may also wish to consult your tax advisor if you require any tax advice.
How does CRS affect you?
Etiqa Customers shall have to provide a declaration on tax residency statuses. Foreign tax residents shall have to complete a self-certification form which includes a declaration of your tax residency(ies). You may also be required to furnish additional information and supporting documents. You shall inform us where there are changes in circumstances that may impact your tax residency(ies). If you require a self-certification from, you may obtain it from your Financial Adviser Representative.
Taxpayer Identification Number
Tax Identification Number is a tax reference number issued by authority of the country of tax residence. Some jurisdictions do no issue a TIN. Instead, they use other types of identification which acts as a functional equivalent, for example, a social security, insurance number, citizen or personal identification code or resident registration number. If you would like to find out more about the CRS and how it affects you, you may refer to the CRS Fact sheet.
Foreign Accounting Tax Compliance Act
The CRS and Foreign Accounting Tax Compliance Act (“FATCA”) are both tax initiatives introduced to reduce tax evasion and improve tax transparency and accountability. While both the CRS and FATCA might require similar information from customers, additional information might still be requested under the CRS even if you have already provided information under FATCA.
FATCA is a United States (“US”) tax law enacted on 18 March 2010, which is aimed at reducing tax evasion by US individuals receiving income from financial assets held outside US. Financial Institutions outside US, including Etiqa, are required to provide information to the US Internal Revenue Service through IRAS on financial accounts held by US persons. Non-compliance will subject Etiqa to 30% withholding tax on payments received from sources within the US levied on non-compliant individuals or entities.
For more information on FATCA, please click here.
Information is accurate as at 3 March 2017.