CRS Services are sought by financial institutions to comply with the requirements of the international agreements related to the exchange of information for tax purposes in force in the State of Kuwait. All financial institutions operating in the State of Kuwait are required to comply with all requirements set forth in the Multilateral Competent Authority Agreement (M.C.A.A.) which was signed between the State of Kuwait and Organization for Economic Development and Cooperation (O.E.C.D) to Improve International Tax Compliance and to Implement Common Standard for Reporting (CRS).
Baker Tilly provides its services to financial institutions in the State of Kuwait regarding CRS mandates including:
CRS Assurance Services
CRS FFI Classification Attestation.
CRS Reporting Procedures Attestation.
Issuance of Annual/ On Demand CRS Compliance Certification for financial institutions about the extent of compliance with CRS requirements and integrity of processes and procedures in place.
CRS Consulting Services
Establishing CRS Process, Policies and Procedures.
Troubleshooting issues related to CRS reporting.
Below are some significant information and frequently asked questions pertaining to CRS implementation in Kuwait:
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any branch of that Financial Institution that is located outside the Jurisdiction.
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any branch of a Financial Institution that is not resident in the Jurisdiction, if that branch is located in the Jurisdiction.
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Custodial Institution
Generally includes custodian banks, brokers and central securities depositories.
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Investment Entity
Generally includes Entities investing, reinvesting or trading in financial instruments, portfolio management or investing, administering or managing Financial Assets.
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Depository Institution
Generally includes savings banks, commercial banks, savings and loan associations and credit unions.
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Specified Insurance Company
Generally includes most life insurance companies.
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Individual
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Identification as Partner Jurisdiction citizens or residents.
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Partner Jurisdiction mailing or resident address.
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Partner Jurisdiction telephone number.
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Power of attorney or signing authority granted to a person with a Partner Jurisdiction address.
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Instructions to transfer funds to an account in the Partner Jurisdiction.
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“Hold mail” instruction or “in-care-of” address in a Reportable Jurisdiction.
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Entity
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Incorporated in the Partner Jurisdiction.
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A Partner Jurisdiction address or telephone number.
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Checking whether the Entity is a Passive NFE and, if so, the residency of Controlling Persons.
- For individuals
- Pre-existing accounts
Any balance or value created prior to 31 March 2017 should report as of 31 December 2017 or in any subsequent year (no threshold).
- New accounts
Any balance or value created after 31 March 2017 should report as of 31 December 2017 or in any subsequent year (no threshold).
- For Entities
- Pre-existing accounts
Balance or value that exceeds $250,000 created prior to 31 March 2017 should report as of 31 December 2017 or in any subsequent year.
- New accounts
Any balance or value created after 31 March 2017 should report as of 31 December 2017 or in any subsequent year (no threshold).
- Collect Know Your Client (KYC) form – which shall be amended to contain all reportable persons indicia from all clients along with related supporting documents.
- Request self-certification from each Individual and Entity account holder to establish the account holder status.
- Name, address, tax identification number (TIN), date and place of birth (in the case of an individual).
- Account number.
- Name and identifying number of the reporting financial institution.
All accounts |
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Custodial accounts |
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Deposit accounts |
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Other accounts |
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- Report on MoF portal either manually (to enter each reportable account), or through uploading a file using approved schema (CRS XML schema, guidelines on schema requirements can be browsed from the following link (https://www.oecd.org/tax/exchange-of-tax-information/common-reporting-standard-status-message-xml-schema-user-guide-for-tax-administrations.pdf).
- Appoint approved and licensed auditor to issue assurance certificates as follows:
- CRS FI Classification Attestation.
(Reference: Ministerial Resolution No. 46 of 2017 concerning the preliminary guidelines to implementing of the International Agreements on Tax Information Exchange, Article 3, Clause 1.)
- CRS Reporting Procedures Attestation.
(Reference: Ministerial Resolution No. 46 of 2017 concerning the preliminary guidelines to implementing of the International Agreements on Tax Information Exchange, Article 3, Clause 2.)
- Issuance of Annual/ On Demand CRS Compliance Certification for financial institutions about the extent of compliance with CRS requirements and integrity of processes and procedures in place.
(Reference: Ministerial Resolution No. 46 of 2017 concerning the preliminary guidelines to implementing of the International Agreements on Tax Information Exchange, Article 3, Clause 3.)
- FI users can access technical system support by email at AEOI_support@mof.gov.kw.
- FI users can access general CRS support by email at CRS-inquiry@mof.gov.kw.
- Comply with laws, regulations, resolutions and instructions issued by the regulators.
- Enhance business entity’s reputation and promote all stakeholders’ confidence.
- Contribute to optimizing efficiency and reputation of the banking and financial services sector, and adherence to international legislations.