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The Common Reporting Standard (CRS)

 

CRS overview

The Organisation for Economic Co-operation and Development (OECD) has introduced the Common Reporting Standard (CRS) in order to improve cross-border tax compliance and to combat tax evasion. CRS is a global standard for the automatic exchange of financial information (AEOI) between participating jurisdictions that have agreed to adopt it.

Compliance with CRS is mandatory under local law in each participating jurisdiction, including the State of Qatar. Regulations based on the CRS require QNB Group to collect and report certain information about an account holder’s tax residence.

Each jurisdiction has its own rules for defining tax residence. In general, tax residence is the country in which you live. Special circumstances (such as studying abroad, working overseas, or extended travel) may cause you to be resident elsewhere or resident in more than one country at the same time (dual residency). The country/countries in which you pay income tax are likely to be your country/countries of tax residence.

For more information on tax residence, please consult your tax adviser or refer to the OECD AEOI Portal.

What is the impact of CRS on QNB customers?

QNB Group is committed to protecting the integrity of tax systems, preventing financial crime and adhering to the required laws to comply with CRS regulations in all participating countries where the bank operates (through its overseas branches and subsidiaries). The CRS regulations affect banks and other financial institutions who may follow a different compliance approach than that of QNB, which may request the customer to provide additional data and fill certain self-certification forms related to their tax status.

Clients that hold financial accounts with QNB shall be subject to CRS due diligence procedures. Customers affected include individuals (whether banking directly or indirectly through an entity), sole proprietors and entities such as corporations, partnerships and trusts.

Generally, clients that are identified as reportable persons, i.e., tax residents of reportable jurisdictions, will be subject to reporting. Therefore, clients whose jurisdiction of tax residence is Qatar (or the country in which the account is held) only are not subject to reporting for CRS purposes (If the country where the account is held is the sole tax residence of the account holder, his/her financial account information will not be reported for CRS reporting purposes).

The forms to be completed by customers?

What information will be reported to the Tax Authorities?

If the customer (or for certain types of entities, the Controlling Persons) is a tax resident of reportable jurisdictions, then QNB Group shall report him/her (or Controlling Persons’). Information exchanges shall include account information; i.e. including the name, address, date of birth, jurisdiction of residence, tax identification number (TIN), account number, account balances and certain income, etc., to the local Tax Authorities who in turn will then exchange the data with the tax authorities of the relevant reportable jurisdictions that have signed AEOI agreements.

Note:

QNB Group is not in a position to provide clients with tax advice assist clients in the determination of their countries of the tax residence or assist clients in completing the CRS self-certification form. It is the responsibility of the clients to provide true, correct and complete information in the self-certification to the best of their knowledge and belief.
Should you have any further queries regarding CRS and your tax status, please contact your tax advisor.

 

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