The global exchange of banking data (AEOI) - or what is CRS?

• The USA has its own tax laws and regulations, including FATCA (Foreign Account Tax Compliance Act), which is similar to the AIA in some respects.
• They have so far refused to join the AEOI due to their national legislation and potential double taxation problems for American citizens.
• Although the USA is not part of the Common Reporting Standard (CRS), there are FATCA (Foreign Account Tax Compliance Act) bilateral agreements for data exchange. These agreements relate exclusively to private accounts and are therefore not relevant for US LLCs and business accounts of foreign citizens. US LLCs are considered separate legal entities and not as foreign account holders, which is why they are not affected by these regulations.

• The USA has not yet ratified the AEOIas they already have their own tax information exchange system, the Foreign Account Tax Compliance Act (FATCA).
• FATCA obliges foreign financial institutions to pass on information about accounts of US taxpayers to the IRS (Internal Revenue Service).
• Although the USA is not part of the Common Reporting Standard (CRS)but due to FATCA (Foreign Account Tax Compliance Act) bilateral agreements on data exchange. These agreements relate exclusively to private Accounts and are therefore not relevant for US LLCs and foreign business accounts of non Citizens. US LLCs are regarded as separate legal entities and not as foreign account holders, which is why they are not affected by these regulations.
• Critics argue that the US is applying a double standard by demanding information from other countries but not participating in the AEOI itself.
• Other countries, including EU member states, are urging the US to join the AEOI in order to improve international tax transparency and the fight against tax evasion and money laundering.
• Despite these controversies, the US government has so far given no indication that it will join the AEOI. It remains to be seen whether this will change in the future, especially in the context of increasing international cooperation to combat tax evasion and money laundering.

This list is based on the information from the provided document from the official website of the German Federal Central Tax Office and the knowledge about worldwide recognized countries. Please note that some countries may be negotiating or planning to join the CRS in the future. This list may contain errors. Have you discovered an error? Please write to us: Contact us

What is reported in the global banking data exchange?

List of reportable account data within the framework of the automatic exchange of bank data (CRS)

• Name, address, country of residence and tax identification number of the account holder
• Date and place of birth
• Account number and name of the bank or financial institution
• Account balance and total credits in the current calendar year
• Investment income (e.g. interest, dividends) and income from certain insurance contracts
• Proceeds from the sale of financial assets

Are accounts with a balance of zero also reported?

As part of the Common Reporting Standard (CRS) information is also generally provided on Accounts with a balance of zero exchanged. However, there are a few special features:

Obligation to report zero accounts

Accounts with a balance of 0 must always be reported, unless they have been closed. This ensures seamless monitoring and prevents potential tax evasion.

Exceptions for certain account types

There are exceptions for certain account types. For example inactive accounts or Accounts with very low balances be exempt from the reporting obligation under certain circumstances.

Relevance of account movements

Even if an account has a Zero balance the Account movements be relevant during the reporting period. In particular, the Total credits reported in the current calendar year.

Purpose of the comprehensive reporting

Reporting zero accounts helps to obtain a complete picture of a taxpayer's financial situation and to uncover possible tax avoidance strategies.

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