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Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016

In accordance with IRS regulations, report FSMs are required to submit a return to the IRAS containing IRS information from the accounts to be submitted that they managed during the calendar year. Each report SGFI that has financial accounts that are not reporting accounts must submit a zero refund to the IRAS for the corresponding reference year. Accounts submitted for reporting are financial accounts held by account holders and whose holder is a passive ENF, passive ENF controllers, residents of the tax territory of a jurisdiction subject to reporting. Since GfbFi are supposed to report, implementing a series of internal controls to manage their regulatory IRS risks, IRAS has identified 23 desired characteristics or outcomes that the FGM reporting should achieve to demonstrate the adequacy and robustness of the reporting EFIS operational environment, compliance with its CRS due diligence obligations and how the SGFI reporting meets its CRS reporting obligations. List of deferred jurisdictions (PDF, 464KB) for 2019 CRS reports published. The Common Information Standard (SIR) is an internationally accepted standard for the automatic exchange of financial account information between legal systems for tax purposes, in order to better combat tax evasion and ensure compliance with tax rules. The CRS presents information on financial accounts to be exchanged, financial institutions to be declared (“FIs”), different types of accounts and registered subjects, as well as the obligations of vigilance to be respected by MFi with respect to customers. The CRS SYSTEM relies on the FATCA reporting system to maximize efficiency and reduce the costs of implementing legal systems and their rights. More than 100 countries, including major financial centres such as Dubai, Hong Kong, Luxembourg and Switzerland, have approved the CRS and launched the AIA in either 2017 or 2018. Singapore is committed to implementing the IRS and the first exchanges took place in September 2018. For more information on IRS, click here.

If you are aware of a possible IRS breach by using systems, products and/or structures to circumvent IRS reports, you can provide information to the IRAS here. All GRFBFFIs for reporting companies must submit their IRS returns, including zero returns (if any) for a reference year until May 31 of the following year. SIR returns must be sent electronically to the IRAS via the “Submit CRS Return” electronic service. No return on paper is accepted. Reporting SGFIs can choose “Return with Nil Data” via this electronic service if they do not have accounts to report in 2019. Legislation on the implementation of the IRS is in Part XXB of the Income Tax Act (Cap).

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