CBO Circular on Common Reporting Standards
Recently, Central Bank of Oman (CBO) issued a circular on implementing the Common Reporting Standard (CRS) regime. This circular sets the rules for the automatic exchange of information (AEOI) through CRS. Through this circular, Oman is taking concrete measures to ensure that it fully complies with the Common Reporting Standard (CRS), developed by the Organization for Economic Cooperation and Development (OECD) to support the automatic exchange of financial account information.
The CRS rules impose requirements on Financial Institutions to identify and report accounts opened and held by persons that are tax residents in a CRS participating jurisdiction (i.e.105 jurisdictions which are implementing or have committed to implement CRS until now). The CRS reporting will be made to the Oman tax authorities, who will then exchange this information with other reporting jurisdiction who has signed the Multilateral agreement.
The four types of entities that qualify as Reporting Financial Institutions includes Custodial institution, Depository institution, Investment entity, Specified insurance company. In order to comply with the CRS regulations, Financial Institutions established in Oman will have to:
• Collect self-certifications from new accounts;
• Conduct the due diligence reviews on pre-existing accounts;
• Document their internal governance and compliance framework;
• Report reportable accounts.
The CBO declared that the collection of CRS related information for new account holders will start from 1 July 2019 for all Financial Institutions operating in the Sultanate of Oman. Thus, the mentioned Financial Institutions are required to collect a CRS self-certification from new customers upon account opening. It is also expected that the existing account holders will be required to provide the necessary information on tax residency later this year.
Oman is currently preparing the primary and secondary legislation to implement the CRS and the country is committed to commence its first AEOI in September 2020.
For more information please contact us
Chartered House Tax Consultancy
Office # 1711 The Metropolis Tower
Business Bay, Dubai, U.A.E.
T: +971 4 2435666