Common reporting standard

What the common reporting standard is

The common reporting standard, or CRS, is an arrangement the OECD put in place to share certain account details across borders. Banks and other covered financial institutions must record where you claim tax residence, then report your details to their country’s tax authority. That office then passes your account information to the tax authority in the country where you reside for tax purposes. This automatic exchange now covers over 100 different countries and territories.

Making it harder to keep overseas income or assets hidden from tax authorities is the core purpose here. CRS addresses only financial account details, not the tax rate you pay or the exact tax you owe. Your responsibility to declare foreign accounts and assets, including what to report or when, is a separate matter. For more, see reporting foreign bank accounts.

What information is shared and who reports it

CRS covers banks, as well as some investment platforms and certain insurance products. For each account that counts as reportable, these institutions supply your name, address, date of birth, tax identification number, account value, and payments such as interest, dividends or money from asset sales.

Your tax residence, not your citizenship, determines if a bank flags your account for reporting. The bank’s report first goes to its own country's tax agency; that office then transmits the data to the tax authority where you live. Your tax authority can compare those numbers to the information on your tax filings. The CRS setup does not involve the United States. Instead, the US uses its own regime; see what FATCA is for details.

Crypto exchanges and wallet providers face a related set of rules, which you can read about in DAC8 and CARF.

Worked example: an account at a bank abroad

Let's say you reside in Country A and open a savings account at a bank in Country B. While setting up the account, the bank asks you to state your tax residency and your tax identification number, so you tell them you live in Country A.

Every year, the bank gives your account interest and balance to the tax office in Country B. That office then shares those figures with Country A’s tax authority. If you leave out that interest on your Country A tax return, the tax authority might contact you to clarify the difference.

Why banks ask for a self-certification

When you start an account or update your details, the bank will likely give you a self-certification form. They use it to confirm where you’re taxed and what numbers identify you for tax purposes. Make sure your answers are correct, and update the provider if your tax situation changes, for instance, if you move long-term to another country.

A tax identification number might look different depending on the country: it could be a national personal ID, a social security number, or another unique number the tax authority uses. If you don’t have one, the form usually lets you provide a reason.

Frequently asked questions