It is mandatory for all NRI investors living in the US to file a FATCA self-declaration. FATCA and CRS declarationĪccount holders will have to file FATCA and CRS declaration: FATCA Declaration for NRIs Similar to FATCA, CRS is an agreement for automatic exchange of information between bilateral treaty partner countries about account holders/ investors in foreign jurisdictions.

India is a part of G-20 countries and signed up for CRS on 3rd June 2015 as one of the early adopters of CRS. The agreement requires Indian financial institutions to carry out enhanced KYC procedures to identify accounts of US taxpayers and report on such accounts on an annual basis.

The Government of India and the United States of America signed the FATCA Inter-Governmental Act (IGA) on 9th July 2015. Several millions of accounts are reported under CRS.ĭifference between FATCA and CRS FATCA and CRS agreement signed by India Only a few thousands US people are reported under FATCA. The balance of an account holder must be more than $50,000 under FATCA Difference between FATCA and CRSīoth FATCA and CRS were formed to validate and reinforce tax compliance globally, but there are certain differences between FATCA and CRS, which are as follows:įinancial institutions are required to report only those customers who qualify as US persons.ĬRS is applicable for persons of more than 90 countries. It is an initiative of G-20 countries and Organisation for Economic Cooperation and Development (OECD) for the automatic exchange of information (AEOI) on financial accounts. CRS is an international version of FATCA and is applicable for citizens of each registered country. The full form of CRS is the Common Reporting Standard.

The objective of FATCA implementation is to eliminate tax evasion by American citizens and businesses that are investing, operating and earning taxable income abroad. It is a tax law that requires US citizens living in the US or abroad to report annual reports on any foreign account they are holding. The full form of FATCA is Foreign Account Tax Compliance Act. Let’s understand the FATCA & CRS declaration in detail and their importance for citizens of member countries, including NRIs and Indians. Formation of FATCA and CRS are two such measures. With the increase in cross-border capital flows, governments and financial institutions worldwide are taking a number of steps to deter illegal financial activities like tax evasion and money laundering.

Fatca self declaration form