Outlook on CRS development in the Thai financial market
Developed by OECD under the Automatic Exchange of Information (AEOI) standard, Common Reporting Standard (CRS) requires financial institutions to enhance data collection and report of a client's tax status, assets and income streams to local authorities. Since 2017, it has taken effect in over 18 APAC jurisdictions, including Australia, China, Hong Kong, Japan and Singapore. Thailand joined the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2017 as a commitment to align its reporting standard with the globally recognized CRS. It is expected the nation will fully commence CRS by 1 January 2022 to carry out its first AEOI scheduled for 2023. Thai financial institutions are in the process of understanding the implications of CRS on their IT infrastructure and operating procedures as well as developing best practices to gather, verify and monitor client information for ongoing analysis and reporting purposes. Thailand is navigating through similar challenges and misconceptions like the early adopters but stands to benefit from valuable lessons learned in the past few years.
Outlook on CRS development in the Thai financial market
Developed by OECD under the Automatic Exchange of Information (AEOI) standard, Common Reporting Standard (CRS) requires financial institutions to enhance data collection and report of a client's tax status, assets and income streams to local authorities. Since 2017, it has taken effect in over 18 APAC jurisdictions, including Australia, China, Hong Kong, Japan and Singapore. Thailand joined the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2017 as a commitment to align its reporting standard with the globally recognized CRS. It is expected the nation will fully commence CRS by 1 January 2022 to carry out its first AEOI scheduled for 2023. Thai financial institutions are in the process of understanding the implications of CRS on their IT infrastructure and operating procedures as well as developing best practices to gather, verify and monitor client information for ongoing analysis and reporting purposes. Thailand is navigating through similar challenges and misconceptions like the early adopters but stands to benefit from valuable lessons learned in the past few years.