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Reportable account

The OECD Common Reporting Standard defines a reportable account through account holder status and due diligence.

Definition and scope

The OECD Common Reporting Standard describes a reportable account as an account held by a reportable person, or by a passive non-financial entity with a reportable controlling person, after due diligence identifies it as reportable.[1]

In the OECD definition, the account must satisfy both a holder test and identification under the standard's due diligence procedures. A passive non-financial entity qualifies through one or more controlling persons who are reportable persons. The definition therefore connects account status to the tax residence of a holder or controlling person, and to the procedures applied by the reporting institution.[1]

A reportable person is generally an individual or entity resident for tax purposes in a reportable jurisdiction. The standard excludes specified types of persons from that category, including certain publicly traded corporations, governmental entities, international organisations, central banks and financial institutions. A reportable jurisdiction is defined by an exchange obligation and its inclusion on a published list.[1]

Identification and continuing status

An account takes reportable status when due diligence identifies it as such. Under the OECD commentary, that status continues until the holder ceases to be reportable, the account becomes an excluded account, the account closes, or it is transferred in its entirety. A zero or negative balance, or no payment or credit, does not by itself end the status.[1]

The reporting period can include the full period in which an account is identified based on its status at period end. For a closed account, information is reported through its closure date. Annual reporting generally occurs in the following calendar year for the period covered.[1]

A financial account maintained by a reporting financial institution becomes reportable under the Common Reporting Standard definition when due diligence identifies the specified reportable holder or controlling person. The standard also provides for information about reportable accounts, including interest, dividends, account value and income from certain insurance products.[1]

The St. Kitts and Nevis Inland Revenue Department uses a concise formulation: an account may be held by a person tax resident in a reportable jurisdiction, or by a passive non-financial entity whose controlling person is resident there. Its guidance lists account holder residence, account number, account balance or value, and income generated among information reported by financial institutions.[4]

The CRS provides for the collection and exchange of account information.[1]

Questions and answers

Does every financial account count as reportable?

No. Under the OECD definition, it must be held by a reportable person or by a passive non-financial entity with a reportable controlling person. Due diligence procedures must identify it as reportable.[1]

Can a zero-balance account remain reportable?

Yes. The OECD commentary says reportable status can continue even when the account balance is zero or negative, or when no amount is paid or credited. Status ends under specified conditions, such as closure or the account becoming excluded.[1]

Who is a reportable person?

The OECD standard generally defines this as an individual or entity resident for tax purposes in a reportable jurisdiction. It excludes specified categories, including certain publicly traded corporations and financial institutions.[1]

What information is associated with a reportable account?

Information reported includes interest, dividends, account balance or value, income from certain insurance products and sales proceeds. St. Kitts and Nevis guidance also lists tax residence details and account information.[1]

When does an account become reportable?

It becomes reportable when due diligence procedures identify it as such. The OECD commentary ties the start of that status to the identification date under the applicable procedures.[1]

  • Reporting financial institution: The Common Reporting Standard classifies a financial institution as reporting when it falls within the relevant jurisdiction's rules and is not non-reporting.
  • Common Reporting Standard: The Common Reporting Standard sets rules for exchanging financial account information, covering reporting institutions, covered accounts and due diligence.
  • Financial account (CRS): The Common Reporting Standard defines accounts at financial institutions, including deposit and custody accounts, plus equity and debt interests and insurance.
Sources and data notes
  1. OECD, Standard for Automatic Exchange of Financial Account Information in Tax Matters, Second Edition (Common Reporting Standard and Commentaries). https://www.oecd.org/content/dam/oecd/en/publications/reports/2017/03/standard-for-automatic-exchange-of-financial-account-information-in-tax-matters-second-edition_g1g73eb6/9789264267992-en.pdf. Retrieved .
  2. Revenue Jersey, Government of Jersey, Automatic exchange of tax information: the Common Reporting Standard (CRS). https://www.gov.je/taxesmoney/internationaltaxagreements/igas/pages/commonreportingstandard.aspx. Retrieved .
  3. Inland Revenue Authority of Singapore, CRS Registration and Deregistration. https://www.iras.gov.sg/taxes/international-tax/common-reporting-standard-%28crs%29/crs-registration-and-deregistration. Retrieved .
  4. St. Kitts and Nevis Inland Revenue Department, CRS. https://www.sknird.com/crs/. Retrieved .

Dates in this block record when each source was read for this page.