Common Reporting Standard (CRS)
CRS is a global standard for the automatic exchange of financial account information between tax authorities to combat tax evasion.
What is CRS?
CRS is the OECD's global standard for the Automatic Exchange of Financial Account Information (AEOI). Based on the MCAA and domestic rules, financial institutions perform due diligence to identify customers' tax residency (using self‑certifications and TINs), apply reasonableness checks, and report account information (balances, income, and gross proceeds) to their local tax authority. That authority then automatically exchanges the data with partner jurisdictions on a yearly cycle, typically by 30 September, to improve tax transparency and deter offshore tax evasion.
How CRS works
Financial institutions determine tax residency, collect self-certification and TINs, apply reasonableness checks, and report financial account information to local authorities.
Key Requirements
Determine tax residency of account holders
Collect self-certification forms
Obtain Taxpayer Identification Numbers (TINs)
Apply reasonableness checks on information
Report financial account information to local authorities
Maintain ongoing monitoring of account changes
Why CRS matters
CRS compliance is essential for financial institutions to meet international tax transparency requirements and avoid penalties while contributing to global efforts against tax evasion.
History
Developed by the OECD in 2014 to enhance tax transparency, CRS leverages the legal framework of the Convention on Mutual Administrative Assistance in Tax Matters and the Multilateral Competent Authority Agreement (MCAA). Early adopters began exchanging information in 2017, with wider implementation from 2018.
Information exchanged
- Name, address, TIN, and date/place of birth of reportable persons
- Account number
- Reporting financial institution name and identifying number
- Account balance or value at year end or on closure
- Income/distributions (e.g., interest, dividends, gross proceeds)
Common reporting errors
- Incomplete or incorrect account holder information
- Incorrect entity classification
- Data formatting issues in submitted files
- Threshold and exemption misinterpretations
Participants
Selected jurisdictions participating in CRS (see OECD references below for the full and up-to-date list).