The Common Reporting Standard (CRS)
What is the aim of CRS?
CRS aims to combat tax evasion and maintain the integrity of the tax system around the world.
How is CRS different to FATCA?
FATCA is a US tax initiative introduced by the Inland Revenue Services (IRS) to avoid tax evasion by US citizen. However, CRS is a global tax initiative introduced by the OECD.
How does CRS work?
The Financial Institutions (FI) (such as depository institution (mainly banks), custodial institutions (mainly custodians, insurance entities etc.) are required to determine the tax residency of their account holder (entities or individual holding a financial account). Where the account holders are not resident for tax purposes in Mauritius, the FI has the obligation to report information on those account holders annually to the local tax authorities, the Mauritius Revenue Authority (MRA).
The MRA will transmit the CRS returns in XML format to the relevant jurisdictions, as listed on the below web link, in respect of 2017 reportable accounts:
http://www.mra.mu/download/jurisdictions.pdf
The Non-Financial Institutions (NFI) do not have reporting obligations under the CRS but may have to disclose information to other FI.
CRS Timeline
Since the 1st January 2017, all entities treated as tax residents in Mauritius must comply with CRS.
| First Reporting Period | 1st January 2017 to 31 December 2017 |
| Deadline for first reporting | 31st July 2018 |
| Reporting deadline by MRA with the reportable jurisdictions | 30th September 2018 |
Reportable information
Information reported by FIs on their account holders include:
- Name, address, tax residence, account number and tax identification number [ or Tax account number/Tax reference number] of the account holder; and
- Account balance and total gross amount paid [ total receipts into account] or credited to the account including the aggregate amount of redemption payments made to the Account Holder during the calendar year.
How can MITCO assist?
- Liaising with the Mauritius Revenue Authority for CRS registration and reporting formalities;
- Intermediating with tax advisors and other professionals to enhance compliance; and
- Carrying out CRS classification for client entities in line with the CRS Guidance Notes issued by the MRA and arrange for board approval.
Your dedicated administrator at MITCO must have already contacted you for completion of the necessary formalities in compliance with the CRS regulations or will be contacting you shortly. However, we invite you to contact us for any further information that you may require on CRS.