Common Reporting Standard (CRS) - Frequently Asked Questions
The CRS is an internationally agreed standard for Automatic Exchange of Information (AEOI) between the CRS-participating countries/jurisdictions for tax purposes. The purpose of CRS is to prevent offshore tax evasion through the use of foreign financial accounts. It calls on CRS-participating countries/jurisdictions to obtain information from their financial institutions and automatically exchange that information with other CRS-participating countries/jurisdictions on an annual basis.
Singapore has committed to implement the CRS and will start collection of tax information from 1st Jan 2017 and undertake first exchange of information by 2018.
For more information on CRS, please refer to the FAQ below.The full CRS regulation is also available at IRAS website.
- How will CRS affect me?
Under CRS, tax authorities require financial institutions such as Prudential to collect and report certain information relating to their customers’ tax residences.
If you purchase a new policy, have a trust nomination or change your particulars, we will require you to certify some information about your tax residences. This is done through completing a CRS self –certification form.
The CRS is applicable to both individual and business customers.
- I live in Singapore and only pay tax here. Why do I have to provide Prudential with the CRS Self Certification?
Under CRS, Prudential is legally required to establish the tax residences of all our customers. However, if you are a tax resident of Singapore only, your information will not be reportable for CRS purpose.
- What information will be reported to the relevant tax authorities?
It will generally include the Information below.
- Tax Identification Number(s)
- Date of Birth (Applicable to Individual)
- All Countries of foreign tax residencies
- Place of Registration / Incorporation (Applicable to Entity)
- Policy information such as Policy Number, Cash Value, Gross Payout
The type of information to be reported may be subjected to requirements stipulated with the relevant tax authorities.
For confidentiality and data safeguards, information collected will only be disclosed to the relevant tax authorities if we are legally required to do so.
- What will happen if I do not provide the information required under CRS?
As Prudential is fully committed to the CRS, we may not be able to open new account or offer products to customers who do not comply with the CRS requirements. For existing customers, we may need to report their information to IRAS based on existing information available if the required documents are not received by us.
- Can Prudential advise on my tax residence if I am not sure?
The definition of tax residence differs from jurisdiction to jurisdiction. We are unable to provide tax advice on your tax residence. Please approach a professional tax advisor or check the OECD website for more information on rules governing tax residence if you are unsure about your tax residence.
- Do I need to update Prudential if my tax residence is changed?
Yes. You need to submit the CRS Self Certification form to Prudential whenever you have a change of your tax residence. The CRS Self Certification form can be downloaded from our corporate website or contact us at 1800 333 0 333 for assistance.