The Inland Revenue Authority issued an updated version of the CRS FAQs revising question F.9 under the “Reporting Obligations” section.
The Inland Revenue Authority of Singapore (IRAS) on July 25, 2024, issued an updated version of the common reporting standard (CRS) “frequently asked questions” (FAQs), revising question F.9 under the “Reporting Obligations” section.
The updated question clarifies the reporting requirements for the account balance or value for the account holders of a trust classified as an investment entity. The reportable balance for each account holder depends on the most frequently used valuation method used to calculate the value of the trust’s equity interests, regardless of whether the trust is revocable, irrevocable, discretionary or whether the settlor is a beneficiary. The balance or value of debt interest needs to be reported at its principal amount. When the trust determines its value or balance based on a specific nature or arrangement, such value can be reported if it reflects the trust’s most frequently determined value.
When the trust, which is a financial institution, has not recalculated the balance or value for other purposes, the account balance for settlors and mandatory beneficiaries may be based on the value of the interest at acquisition or the total value of all trust property.
The reportable information depends on the nature of the interest held by each account holder.
Read an August 2024 report prepared by the KPMG member firm in Singapore