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Modifications to sections II to VIII of CRS

Income Tax (International Tax Compliance Agreements) (Common Reporting Standard) Regulations 2016

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—(1) For the purposes of regulations 14(3) and (10) and 16(7), sections II to VIII of the CRS are modified by the following paragraphs.(2) For the purpose of paragraph C of section II of the CRS, the appropriate reporting period mentioned in that provision is a period of 12 months.(3) In sub‑paragraph C(6) of section III of the CRS, the reference to 31 December of a year is a reference to 31 December 2016.(4) For the purpose of paragraph D of section III of the CRS, a reporting Singaporean financial institution must, in respect of pre‑existing individual accounts —(a)complete its review of high value accounts by 31 December 2017; and(b)complete its review of lower value accounts by 31 December 2018.(5) In paragraphs A and B of section V of the CRS, all references to 31 December of a year are references to 31 December 2016.(5A) In paragraph B of section V of the CRS, the reference to paragraph D is a reference to paragraph C.(6) In sub‑paragraph C(2)(c)(ii) of section V of the CRS, the reference to paragraph C of section III of the CRS is a reference to sub‑paragraph B(2) of section III of the CRS.(7) For the purposes of sub‑paragraph D(1) of section V of the CRS, a reporting Singaporean financial institution must complete its review of all pre‑existing entity accounts with an aggregate account balance or value that exceeds USD 250,000 as of 31 December 2016 by 31 December 2018.(8) In sub‑paragraph D(2) of section V of the CRS, the first reference to 31 December of a year is a reference to 31 December 2016.(9) Despite paragraph B of section VII of the CRS, a reporting Singaporean financial institution may treat a group cash value insurance contract or a group annuity contract that is entered into by the institution with an entity, and is a financial account, as not a reportable account for the period between 1 January 2017 and the date on which an amount is payable to the certificate holders or beneficiaries under that contract (both dates inclusive), if (and only if) all of the following conditions are satisfied as at 31 December 2016 or the date on which the contract comes into force (whichever is the later):(a)the contract covers 25 or more certificate holders of the contract; (b)each certificate holder is an individual and is entitled to receive the contract value, or any part of that value, related to his or her interests and to name one or more beneficiaries for the benefit payable upon his or her death; (c)the aggregate amount payable to any certificate holder or beneficiary does not exceed USD 1,000,000.(10) Pursuant to sub‑paragraph C(4) of section VII of the CRS, in determining whether an amount of any matter mentioned in a prescribed provision that is denominated in a currency other than US dollars (called in this paragraph the other currency) exceeds the maximum amount specified for that matter in that provision, a reporting Singaporean financial institution must convert the maximum amount into the other currency using the published spot rate determined as of the last day of the calendar year preceding the year in which the determination is done. (11) For the purpose of the definition of “Qualified Credit Card Issuer” in sub‑paragraph B(8) of section VIII of the CRS, the date mentioned in sub‑paragraph (b) of that provision is 1 January 2017.(12) For the purpose of sub‑paragraph E(6) of section VIII of the CRS, “Documentary Evidence”, in the case of an entity that holds a financial account with a reporting Singaporean financial institution that the institution has classified as a pre‑existing entity account, includes the institution’s classification of the entity as a particular type of entity if —(a)the institution’s method of classification of the entity is based on a standardised industry coding system;(b)the institution implements the method of classification in a manner that is consistent with the institution’s AML/KYC procedures, or any other procedure that is carried out for any purpose (other than a tax purpose); (c)the institution implemented the method of classification before the date on which the institution classified the financial account of the entity as a pre‑existing entity account; and(d)the institution does not know and does not have any reason to believe that the institution’s classification of the entity is incorrect or unreliable. (13) In this regulation, a pre‑existing account means —(a)a financial account maintained by the reporting Singaporean financial institution as of 31 December 2016; or(b)any other financial account maintained by the reporting Singaporean financial institution on or after 1 January 2017 if all of the following conditions are satisfied:(i)as of 31 December 2016, the account holder of the financial account has a financial account with the reporting Singaporean financial institution or a local entity that is related to the institution;(ii)the reporting Singaporean financial institution treats one or more of the financial accounts mentioned in sub‑paragraph (a), of the account holder, and all other financial accounts of the account holder that are treated as pre‑existing accounts under sub‑paragraph (b) that are maintained by —(A)the institution; and(B)all local entities that are related to the institution (if any), as a single financial account for the purpose of determining whether an amount of any matter mentioned in a prescribed provision in respect of such single financial account, exceeds the maximum amount specified for that matter in that provision;(iii)the reporting Singaporean financial institution does not know and does not have any reason to believe that any self‑certification or documentary evidence of the financial account or any of the financial accounts treated as a single financial account under sub‑paragraph (ii) is incorrect or unreliable;(iv)where the reporting Singaporean financial institution is required by any written law to perform AML/KYC procedures on the financial account, the institution has performed the AML/KYC procedures on the financial account;(v)the reporting Singaporean financial institution does not require the provision of any new, additional or amended information by the account holder for the opening of the financial account, other than for the purposes of facilitating the compliance by the institution with regulation 14 or 16.(14) In paragraph (13)(b)(i) and (ii), a “local entity” means an entity that is —(a)resident in Singapore (but not in relation to any branch of the entity located outside Singapore); or(b)not resident in Singapore (in relation to its branch located in Singapore).(15) For the purpose of paragraph (13)(b)(i) and (ii), an entity is a related entity of another entity if —(a)one entity controls the other entity;(b)the 2 entities are controlled by the same person; or(c)all the following conditions are satisfied with respect to the 2 entities:(i)both entities satisfy the condition in sub‑paragraph A(6)(b) of section VIII of the CRS;(ii)the assets of the 2 entities are managed by the same person; (iii)the person mentioned in sub‑paragraph (ii) complies with sections II to VII of the CRS with respect to the financial accounts that the 2 entities maintain.(16) In sections II to VIII of the CRS —“Custodial Institution” has the same meaning as “custodial institution” in regulation 5;“Depository Institution” has the same meaning as “depository institution” in regulation 6;“Financial Account” has the same meaning as “financial account” in regulation 11;“Foreign Jurisdiction” means any jurisdiction other than Singapore;“High Value Account” means a pre‑existing individual account with an aggregate balance or value that exceeds USD 1,000,000 as of 31 December 2016 or 31 December of any subsequent year;“Investment Entity” has the same meaning as “investment entity” in regulation 7;“Lower Value Account” means a pre‑existing individual account with an aggregate balance or value as of 31 December 2016 that does not exceed USD 1,000,000;“New Account” means a financial account maintained by a reporting Singaporean financial institution opened on or after 1 January 2017;“Non‑Reporting Financial Institution” means a non‑reporting financial institution;“Participating Jurisdiction” means a jurisdiction that is published as one on https://www.iras.gov.sg;“Preexisting Account” has the same meaning as “pre‑existing account” in paragraph (13);“Reporting Financial Institution” means a reporting Singaporean financial institution;“Reportable Jurisdiction” means a jurisdiction that is published as one on https://www.iras.gov.sg;“Specified Insurance Company” has the same meaning as “specified insurance company” in regulation 8.(17) In this regulation —“certificate holder”, in relation to a group cash value insurance contract or a group annuity contract, means a person who is eligible to receive the benefits provided under the group cash value insurance contract or group annuity contract (as the case may be);“control”, in relation to an entity, includes direct or indirect ownership of more than 50% of the voting rights and share value in the entity;“documentary evidence” has the same meaning as “Documentary Evidence” in sub‑paragraph E(6) of section VIII of the CRS, as modified by paragraph (12);“high value account” and “lower value account” have the same meanings as “High Value Account” and “Lower Value Account”, respectively, in paragraph (16);“group annuity contract” means an annuity contract under which the obligees are members;“group cash value insurance contract” means a cash value insurance contract that —(a)provides coverage on members; and (b)charges a premium for each member (or each member of a particular class) that is determined without regard to any health characteristic other than age, gender, and smoking habits of the member; “member” means one of several individuals who are affiliated in any way, including through an employer, trade association or labour union;“prescribed provision” means any of the following provisions:(a)paragraph (9);(b)the definitions of “High Value Account” and “Lower Value Account” in paragraph (16);(c)regulation 11(2)(j);(d)paragraph A of section V of the CRS, as modified by paragraph (5);(e)paragraph B of section V of the CRS, as modified by paragraph (5);(f)sub‑paragraph C(2)(c) of section V of the CRS, as modified by paragraph (6);(g)sub‑paragraph B(5) of section VIII of the CRS;(h)sub‑paragraph B(8) of section VIII of the CRS, as modified by paragraph (11);(i)sub‑paragraph C(17)(a) of section VIII of the CRS;(j)sub‑paragraph C(17)(b) of section VIII of the CRS;(k)sub‑paragraph C(17)(f) of section VIII of the CRS, as modified by regulation 11(3);“self‑certification” has the same meaning as in regulation 14(11);“standardised industry coding system” means a coding system used to classify business types for purposes other than tax purposes.

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