Common Reporting Standard (CRS)
An international standard under which participating countries' financial institutions automatically exchange account holder information with each other's tax authorities.
The Common Reporting Standard (CRS) is an international standard, developed by the OECD and adopted by a large number of participating countries, under which financial institutions automatically exchange account holder information with the tax authorities of other participating countries — intended to address the same cross-border tax-transparency goal FATCA (see Kaavon's "FATCA" glossary definition) addresses specifically for the US.
Several participating jurisdictions have extended or are extending CRS-style reporting obligations to crypto-asset service providers specifically, meaning a crypto account held through a participating jurisdiction's platform may be subject to this same kind of automatic cross-border reporting.
Examples
- A crypto account held through an exchange based in a CRS-participating country can be subject to automatic reporting to the account holder's home tax authority.
- CRS plays a broadly similar cross-border tax-transparency role internationally that FATCA plays specifically for the United States.