The Common Reporting Standard (CRS) is a global initiative to improve tax transparency and combat cross-border tax evasion. For individuals and businesses with bank accounts in Singapore, CRS means that your account information may be automatically shared with tax authorities in your country of tax residence. This blog explains what CRS is, how it works, and what you need to know to stay compliant.
Become Our Featured Tax Expert.
This premium ad space is reserved for one tax professional. Put your firm in the spotlight and reach qualified Singapore leads directly.
To claim this exclusive spot, contact us at [email protected].
🌍 What is the Common Reporting Standard (CRS)?
The Common Reporting Standard was developed by the Organisation for Economic Co-operation and Development (OECD) to facilitate the automatic exchange of financial account information between participating jurisdictions. Over 100 countries, including Singapore, have committed to CRS to promote transparency and deter tax evasion.
🏦 How CRS Works in Singapore
Under CRS, Singapore’s financial institutions such as banks, insurers, and investment firms are required to:
- Identify account holders who are tax residents in foreign jurisdictions.
- Collect relevant information, such as tax identification numbers (TINs) and addresses.
- Report this information to the Inland Revenue Authority of Singapore (IRAS).
- IRAS will then share the information with the respective foreign tax authorities.
📑 Information Reported Under CRS
The data exchanged under CRS includes:
- Account holder’s name, address, and tax identification number (TIN).
- Account number and type (savings, current, investment, etc.).
- Year-end account balance or value.
- Gross interest, dividends, and other income credited to the account.
💼 Impact on Singapore Taxpayers and Expats
CRS primarily affects individuals and businesses with overseas tax obligations. If you are:
- A foreign national with accounts in Singapore – your details will be sent to your home country’s tax authority.
- A Singapore tax resident with foreign accounts – the foreign jurisdiction will report your details to IRAS.
- A business with multinational ownership – your company’s financial accounts may also be subject to reporting.
📌 Difference Between CRS and FATCA
While FATCA (Foreign Account Tax Compliance Act) is a U.S.-specific law targeting U.S. taxpayers with foreign accounts, CRS is a global framework applying to multiple countries. Singapore complies with both regimes, meaning Americans in Singapore may be subject to both CRS and FATCA reporting.
⚠️ Common Mistakes to Avoid
- Not declaring foreign accounts in your tax filings.
- Assuming that small accounts are exempt – thresholds vary by jurisdiction.
- Failing to update your tax residency status with your bank.
✅ How to Stay Compliant with CRS
- Ensure your bank has your accurate tax residency details and TIN.
- Declare all required foreign income in your tax return.
- Consult a cross-border tax specialist if you have multiple tax residencies.
- Understand Singapore’s exchange relationships to anticipate reporting obligations.
📍 Final Takeaway
The Common Reporting Standard is part of a global effort to eliminate hidden offshore accounts and ensure tax compliance. For Singapore taxpayers and foreign nationals, being aware of CRS obligations is crucial to avoid unexpected audits, penalties, or disputes with tax authorities.
