What is CRS?
What is FATCA?
What is CRS?
CRS stands for “Common Reporting Standard”, a set of regulations and guidelines which govern how tax-related information is exchanged between certain countries. 78 countries or jurisdictions have signed the multilateral agreement so far, while 37 others have committed to exchange information at a later stage. The CRS contains the reporting and due diligence standards that govern the automatic exchange of financial account information.
The European Union has decided to adopt the CRS by amending its directive on administrative cooperation in the field of taxation. This new directive will be applied as of 1 January 2016 between member states of the European Union.
Who does CRS apply to?
The measures apply to any private individual or legal entity residing in a participating CRS jurisdiction, including Belgium. However, it is mainly relevant for accounts held directly or indirectly by foreign tax residents.
What is ING required to do under CRS?
Identify new and existing account holders who show indications of being a resident of another country for tax purposes. This potentially requires additional documentation.
For individual customers, these criteria typically include:
- Having a residence in another country.
- Having a physical or mailing address in another country, including a post office box or care of (c/o) address.
- Having a c/o or hold mail address in another country as their only address.
- Having one or more telephone numbers in another country without having a telephone number in Belgium.
- Granting a power of attorney or signatory authority to a person with either a physical or mailing address in another country, including a post office box or c/o address.
- Issuing standing instructions from an ING Belgium account (other than a current or savings account) to an account maintained in another country.
For legal entities, the criteria include:
- Being incorporated or organised in another country.
- Having a current physical or mailing address in another country, including a post office box or c/o address.
All countries do not yet take part of CRS. However, an increasing number of them will eventually participate to CRS. To anticipate these changes, ING Belgium also documents customers with indicia which do not yet participate to CRS today.
Report information to local tax authorities. It concerns information regarding accounts held directly or indirectly (as beneficial owner) by customers which are taxpayer in a participating CRS jurisdiction:
- The identity of each foreign reportable account holder on reportable accounts
- The reportable account number
- The balance of these accounts on 31st December each year
- Any income (interest, dividends, gross proceeds, etc.) deposited onto these accounts.
The first reports communicated in 2017 will cover the year 2016. The Belgian tax authorities will forward this information to the tax authorities of the relevant participating CRS jurisdiction.
Is CRS applicable in Belgium?
Belgium, like most European nations, has signed the multilateral agreement, which provides for the automatic exchange of tax-related information with other signatories to the agreement. While the agreement is multilateral, the actual exchanges are bilateral.
This agreement is implemented by the law of 16 December 2015 regulating the exchange of financial account information between Belgian financial institutions and the FPS Finances in the frame of an automatic exchange of information on tax matters at international level.
This means that all financial institutions in Belgium, including ING Belgium, are required to report the above-mentioned information to the Belgian tax authorities. They then pass this information on to the tax authorities of the relevant participating CRS jurisdiction.
What does CRS mean for me?
The goal of CRS is to determine whether a certain customer’s account information needs to be reported or not. For individual customers, this means determining where the customer is a resident for tax purposes. For legal entities, it involves determining the type of entity (primarily its business activity), its country of residence for tax purposes and in some cases, the beneficiary owner’s country of residence for tax purposes.
If any of the above-mentioned indications apply to a customer of ING Belgium, we will first contact you for further clarification. In such cases, you may be required to make a declaration and provide evidence of your status.
More information on the new measures and what they mean for you?
- Read the frequently asked questions (PDF)
- See the CRS page on the OECD website.
- Visit the page about CRS on the site of the Federal Public Service (FPS) Finance.
- Where can you find your Tax Identification Number (TIN) ? (site of the OECD)
- Where can you check your Tax Identification Number (TIN) ? (site of the European Communion)
- The contents of the documents on this site are based upon sources of information available and deemed to be reliable. However, due to possible changes in the legal system, the intergovernmental agreement between Belgium and the American Tax Administration or in the interpretation of the current rules, no guarantee or undertaking can be given by ING as to the adequacy or completeness of this information. ING cannot be held liable for any errors or omissions or for results obtained from use of such information.