Summary of Responses to Public Consultation on Proposed Regulations on the Standard for Automatic Exchange of Financial Account Information in Tax Matters
Close to 500 suggestions received on the proposed regulations to allow Singapore to implement the Standard for Automatic Exchange of Financial Account Information in Tax Matters
The Ministry of Finance (MOF), the Monetary Authority of Singapore (MAS) and the Inland Revenue Authority of Singapore (IRAS) have proposed regulations to allow Singapore to implement the Standard for Automatic Exchange of Financial Account Information in Tax Matters (AEOI), also known as the Common Reporting Standard (“CRS”), with effect from 1 January 2017.
The CRS is an internationally agreed standard for AEOI, endorsed by the OECD and the Global Forum for Transparency and Exchange of Information for Tax Purposes. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as the customer due diligence procedures to be followed by the financial institutions. More than 100 jurisdictions, including major financial centres such as Hong Kong, Luxembourg and Switzerland, have endorsed the CRS and will commence AEOI in either 2017 or 2018. Singapore will do so in 2018.
MOF held a public consultation exercise on the proposed Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016 from 11 July to 29 July 2016. The regulations include the proposed list of financial institutions and accounts that are excluded from the scope of reporting, as well as the due diligence and reporting requirements to implement the CRS.
MOF received close to 500 suggestions. Leaving aside those suggestions which were out of scope1, all relevant suggestions were accepted, and revisions will be made to the Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016.
Most of the accepted feedback received focused on the following items:
- Reportable Jurisdictions and Participating Jurisdictions
- Excluded Accounts
- Due Diligence Obligation
MOF, MAS and IRAS would like to thank all individuals and organisations who have taken the time and effort to provide their feedback.
Issued by: Ministry of Finance, Monetary Authority of Singapore & Inland Revenue Authority of Singapore
1 Such out-of-scope suggestions were inconsistent with the requirements of the CRS, with the legislative drafting conventions, or with the policy objectives of the proposed legislative changes.