Common Reporting Standard (CRS)

Definition

The Common Reporting Standard (CRS) is a standard developed by the Organisation for Economic Co-operation and Development (OECD) that organises the automatic exchange, between tax authorities of participating countries, of information relating to financial accounts held by non-resident persons. Each year, financial institutions (banks, management companies, insurance companies) identify account holders who are tax resident in another participating country and transmit this information to their competent tax authority, which then shares it with the authority of the account holder's country of residence. The CRS was designed to strengthen international tax transparency and limit opportunities for concealing assets abroad.

Framework in Mauritius

Mauritius participates in the OECD's CRS automatic exchange of information. The competent authority for implementing CRS in Mauritius is the Mauritius Revenue Authority (MRA), to which Mauritian financial institutions transmit the information collected. FSC-licensed companies, including Global Business Companies (GBC) and Authorised Companies administered by a licensed management company, as well as banks and other financial institutions, are subject to these reporting obligations in the course of their activity in Mauritius.

In practice

When opening an account or subscribing to a financial service, the institution concerned generally requests a self-certificate of tax residence in order to determine whether the account holder — an individual or an entity — must be reported under the CRS. This verification forms part of the usual Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. A change of tax residence, dual nationality, or residence in several countries within the same year may complicate this qualification, which is why professional advice is recommended in case of doubt. It is advisable to verify, case by case and according to one's own personal situation, the reporting obligations applicable in one's own country of tax residence; this is a matter for individual tax advice rather than general information.

Related terms

The CRS is often mentioned alongside FATCA (Foreign Account Tax Compliance Act), the equivalent US mechanism, as well as the KYC and AML procedures implemented by financial institutions. It also concerns structures administered by a management company licensed by the Financial Services Commission (FSC), such as the Global Business Company (GBC) or the Authorised Company (AC), as well as exchanges governed by double taxation treaties between Mauritius and other jurisdictions.

Related terms