Common Reporting Standard (CRS) Self-Declaration

Purpose and Legal Framework

This self-declaration is required under the Common Reporting Standard (CRS) as implemented by The Bahamas through the Multilateral Convention on the Mutual Administrative Assistance in Tax Matters. The Bahamas has committed to the automatic exchange of financial account information with participating jurisdictions to combat tax evasion and ensure global tax compliance.

Regulatory Authority

This declaration is mandated by:

  • The Bahamas Competent Authority for Tax Information Exchange
  • Ministry of Finance, The Commonwealth of The Bahamas
  • International Tax Cooperation Unit

Scope of Application

This self-declaration applies to:

  • All new financial accounts opened on or after July 1, 2017
  • Pre-existing accounts subject to due diligence review
  • Both individual and entity account holders

Required Information

For Individuals

Account holders must provide:

  1. Personal Information

    • Full legal name
    • Current residential address
    • Date of birth
    • Place of birth

  2. Tax Residency Information

    • Country/countries of tax residence
    • Tax Identification Number(s) (TIN) for each jurisdiction
    • If no TIN is available, reason for non-availability

  3. Certification

    • Declaration that information provided is true, correct, and complete
    • Acknowledgment of obligation to notify changes within 30 days

For Entities

Entity account holders must provide:

  1. Entity Information

    • Legal name of entity
    • Registered address
    • Country of incorporation/organization
    • Entity classification under CRS

  2. Tax Residency

    • Country/countries where entity is tax resident
    • Tax Identification Number(s) for each jurisdiction

  3. Controlling Persons (if applicable)

    • Identification of controlling persons
    • Tax residency information for each controlling person
    • Classification of entity type (Active NFE, Passive NFE, Financial Institution)

Classifications and Definitions

Entity Classifications

Active Non-Financial Entity (Active NFE)

  • Less than 50% of gross income is passive income
  • Less than 50% of assets produce passive income

Passive Non-Financial Entity (Passive NFE)

  • More than 50% of gross income is passive income
  • More than 50% of assets produce passive income
  • Requires identification of Controlling Persons

Financial Institution

  • Depository Institution
  • Custodial Institution
  • Investment Entity
  • Specified Insurance Company

Controlling Persons

For entities classified as Passive NFEs, controlling persons include:

  • Natural persons who exercise control over an entity
  • Beneficial owners with 25% or more ownership
  • Senior managing officials (where no individual meets ownership threshold)

Reporting Obligations

Financial Institutions Must Report

  1. Account Information

    • Account holder identification
    • Account number
    • Account balance or value (end of calendar year)

  2. Financial Information

    • Total gross interest paid or credited
    • Total gross dividends paid or credited
    • Other income generated
    • Gross proceeds from sale or redemption of property

  3. Reporting Timeline

    • Annual reporting by July 31st for previous calendar year
    • First exchange of information: September 30, 2018

Change in Circumstances

Account holders must notify the financial institution within 30 days of any change that affects:

  • Tax residency status
  • Information provided in this self-declaration
  • Controlling person information (for entities)

Failure to notify changes may result in:

  • Incorrect reporting to tax authorities
  • Potential penalties under applicable laws
  • Account restrictions or closure

Data Protection and Confidentiality

Information collected under CRS will be:

  • Treated as confidential tax information
  • Used solely for tax administration purposes
  • Protected under international agreements and domestic law
  • Exchanged only with authorized competent authorities

Penalties for Non-Compliance

For Account Holders

  • Provision of false or misleading information may result in penalties
  • Failure to provide required information may lead to account restrictions
  • Criminal sanctions may apply for willful tax evasion

For Financial Institutions

  • Monetary penalties for non-compliance with reporting obligations
  • Reputational consequences
  • Potential loss of operating licenses

Certification Statement

By completing this self-declaration, the account holder certifies that:

  1. All information provided is true, correct, and complete
  2. They will notify the financial institution of any change in circumstances within 30 days
  3. They understand the information may be reported to tax authorities
  4. They acknowledge potential exchange with tax authorities of other jurisdictions
  5. They have obtained consent from any controlling persons whose information is disclosed

Important Notes

  1. Multi-jurisdictional Tax Residence: If you are tax resident in multiple jurisdictions, you must declare all jurisdictions and provide respective TINs.

  2. No TIN Available: If a TIN is not available, you must provide one of the following reasons:

    • Jurisdiction does not issue TINs
    • Jurisdiction does not require TIN collection
    • TIN is otherwise unable to be obtained (explanation required)

  3. US Persons: US citizens and tax residents should also complete relevant FATCA (Foreign Account Tax Compliance Act) documentation.

  4. Professional Advice: Complex situations involving trusts, foundations, or multi-jurisdictional structures should seek professional tax advice.

Assistance and Further Information

For questions regarding CRS self-declaration requirements:

Bahamas Competent Authority

OECD Automatic Exchange Portal

  • Website: www.oecd.org/tax/automatic-exchange/

Local Tax Advisory Services

  • Consult qualified tax professionals for jurisdiction-specific advice
  • Legal counsel for complex entity structures

This document is for informational purposes and does not constitute legal or tax advice. Account holders should consult appropriate professionals regarding their specific circumstances.

Last Updated: August 2025Version: 1.0