Want To set up a company in India — Overview
COMMON REPORTING STANDARDS (CRS)
By Nagavarapu Bhavya Akshaya
The Common Reporting Standard (CRS) is a global initiative for the automatic exchange of financial account information (AEOI) between participating tax authorities. Developed by Organisation of Economic Co-operation and Development (OECD), its purpose is to combat tax evasion by increasing international transparency.
How CRS reporting works
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Financial institutions identify reportable accounts. Financial institutions in a participating country, such as banks and investment firms, must identify accounts held by customers who are tax residents in another participating country.
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Customers provide self-certification. When opening an account, or if flagged during a review, a customer must complete a "self-certification" form to confirm their country or countries of tax residency and provide their Taxpayer Identification Number (TIN).
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Information is reported to local tax authorities. The financial institution provides the required information on reportable accounts to its own tax authority.
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Information is exchanged automatically. The local tax authority then automatically exchanges this information with the tax authority of the account holder's country of tax residency.
Who is affected by CRS reporting?
CRS reporting obligations apply to both financial institutions and their customers in participating countries.
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Financial Institutions (FIs): All FIs in a CRS-participating country must comply, including banks, investment entities, custodial institutions, and certain insurance companies.
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Account Holders: The reporting primarily affects individuals and entities that are tax residents in a country other than where they hold a financial account. This also includes certain "controlling persons" of passive non-financial entities.
What information is reported?
For reportable accounts, financial institutions must report the following information:
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Account holder details: Name, address, date of birth (for individuals), and country or countries of tax residence.
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Taxpayer Identification Number (TIN).
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Account information: The account number and its year-end balance or value.
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Financial details: The total amount of interest, dividends, gross proceeds, and other payments credited to the account during the year.
While the specific deadlines can vary by jurisdiction,July 31, 2025 is the deadline for financial institutions to submit their FATCA and CRS reports for the 2024 calendar year whereas some jurisdictions, such as the Cayman Islands and others, September 30, 2025 is the dead line
Consult with A2consultants to explore our indepth knowledge and insight on CRS guidelines
For detailed insights and practical guidance, visit our Knowledge Center and access our curated guides on India market entry: https://www.a2consultants.in/guides/international-taxation-in-india-for-foreign-companies
About the Author – Nagavarapu Bhavya Akshaya
Nagavarapu Bhavya Akshaya is a CA Final and CMA Final student and an All India Rank holder (AIR 31). With a strong academic foundation in accounting, taxation, and corporate laws, she brings a structured and analytical perspective to complex financial and regulatory topics. Her work focuses on simplifying technical subjects for professionals and businesses, with a special interest in international taxation, corporate structuring, and compliance advisory.
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