What you need to know?

CRS is a global initiative by Organization for Economic Co-operation and Development (OECD). Under the CRS requirements, we are required to capture your ‘tax residency status” (this will usually be where you are liable to pay any income taxes). If you are tax resident outside the country where your account is held, we may need to give this information to the concerned UAE authority(s), along with information relating to your accounts. This information may then be shared with different countries’ tax authorities pursuant to the information exchange agreements that the UAE government will have with the respective countries. Each jurisdiction has its own rules for defining tax residence, and jurisdictions have provided information on how to determine if you are resident in the jurisdiction, on the OECD website http://www.oecd.org/tax/automatic-exchange/common-reporting-standard

What you need to do?

Please complete the CRS Self-Certification Form and arrange to submit it to your branch or your ADIB Relationship Manager. Completing this form will ensure that we hold accurate and up to date information about your tax residency. You should provide the completed CRS Self-Certification Form within the next 90 days and we will update your records accordingly. Please note that our staff will not be able to assist in the completion of this form, as ADIB cannot give tax advice. For more information, please refer to our Frequently Asked Questions (FAQ) or contact a professional tax advisor or visit the OECD website.

What happens if ADIB does not receive these documents?

ADIB shall use the information held in its records, in order to report your tax residency status and account information to the concerned UAE authority. However, we require you to complete and return the applicable CRS Self-Certification Form to ensure accurate information is collected and reported.

Download the Self-Certification Form the represents you

Download the Self-Certification Form for Controlling Persons
Download the Self-Certification Form for Entities
Download the Self-Certification Form for Individuals

1. What is the Common Reporting Standard?

The Common Reporting Standard (CRS) is a new information gathering and reporting requirement for financial institutions in participating countries, to help fight against tax evasion and protect the integrity of tax systems. For the complete list of participating countries, please refer to OECD website  http://www.oecd.org/tax/automatic-exchange/common-reporting-standard

2. Who is reportable?

The CRS seeks to establish the tax residency of customers, therefore, financial institutions are required to identify customers who appear to be tax resident outside of the country where they hold their accounts and products, and report certain information to the local tax authority. The local tax authority may then share that information with the tax authority where the customer is tax resident. 

3. Why are you asking me for my jurisdiction(s) of tax residency?

Under the CRS, tax authorities require financial institutions such as ADIB to collect and report certain information relating to their customers' tax residency status. If you open a new bank account, invest in new financial products or change your circumstances in some way, we will ask you to certify a number of details about yourself. This process is called "self-certification" and we are required to collect this information under the CRS. 

4. How is my/our tax residence defined?

For individuals, tax residence typically refers to any jurisdiction where customers are liable to pay income taxes or have an obligation to file their tax returns. This can be determined by where the individual works or actually lives. However, there are other contributing factors that are based on each jurisdiction's tax residency rules. Therefore, this will depend on where you live and your circumstances. Please contact a professional tax advisor or check the OECD website for more information on how to determine your tax residency, as ADIB cannot give tax advice. 

5. How often do we need to provide information under the CRS?

Information needs to be provided once. The customer is required to provide an updated form, in case of change in customer circumstances which may indicate a change in tax residency status. Customers are encouraged to update bank records accordingly. In addition, Abu Dhabi Islamic Bank may ask for updated information as and when deemed necessary. 

6. What if a customer does not have a Tax Identification Number (TIN)?

There is a possibility that certain countries do not issue Tax Identification Numbers. In such a case, a customer is required to provide details as to why it has no TIN in the self-certification. Jurisdictional guidance on TINs (or functional equivalents) can be found on the OECD Website.

7. What information ADIB will request customers to provide and report to local tax authority?

Some of the key information required to be collected and reported to the tax authorities, includes:

- Name

- Address

- Jurisdiction(s) of tax residence

- TIN(s)

- Date of birth

- Place of birth

- Name of the Reporting Financial Institution

- Account number

- Account balance

- Gross amount paid to the account in a year (Profit, dividends, other income)

- Gross proceeds paid or credited to the account 

8. Will ADIB share my data with other parties?

ADIB is obligated to share the information with its local tax authority (or equivalent) who will then share the information with other tax authorities where the customer is a resident for tax purposes. 

9. Will ADIB respect my data privacy?

ADIB is subject to strict confidentiality requirements and data safeguards as outlined under the local law. As per regulatory requirements, the information is only exchanged with the tax authorities of the relevant country. 

10. What will happen if I do not provide the required information?

CRS is a mandatory requirement as mandated by the concerned UAE authority In case you do not want to provide the required information then we will not be able to proceed with your request for banking with ADIB.

11. Can the guardian provide the CRS self-certification on behalf of the minor in case of Minor accounts? And will the guardian be reported under the CRS?

The CRS self-certification form will be required for the minor account holder only, however, the guardian can provide the certification on behalf of the minor. The guardian will be only subject to documentation and reporting if he/she maintains a separate account with Abu Dhabi Islamic Bank and he/she is a tax resident in one or more of the participating jurisdictions.

12. In the case of joint accounts, is the CRS form mandatory for all account holders?

Yes. Each joint account holder will need to provide a separate CRS self-certification form.

13. If the account is managed by a Power of Attorney holder, Will the POA holder provide the CRS self-certification on behalf of the client? And will the POA holder be reported under the CRS?

The POA holder can provide the certification on behalf of the account holder. However, the CRS self-certification form will be required for the account holder only. The POA holder will be only subject to documentation and reporting if he/she maintains a separate account with Abu Dhabi Islamic Bank and he/she is a tax resident in one or more of the participating jurisdictions.

14. If I have already given my consent to share the information under FATCA, why do I need to give it again?

Even if you have already provided information under FATCA, you may still need to provide additional information under CRS, as FATCA is restricted to U.S. customers and CRS focuses on tax residents of participating jurisdictions.

 

15.   Is the CRS form mandatory for all customers like US nationals and nationals of countries not participating in the CRS?

The tax residency status of all customers should be identified Although customers may be resident in the US, they may also be tax resident in other jurisdictions.

 

16.   Will the change in the residency status impact the reporting (i.e. non-Resident becomes resident, cancellation of residency status of an existing resident)?

Yes. It is clearly stated in the certification that the customer will advise Abu Dhabi Islamic Bank about the change of his tax residency status or any other information provided in the form within 30 days and will provide an updated self-certification within 90 days.

 

17.   If I have an existing relationship with another branch of Abu Dhabi Islamic Bank in a different jurisdiction, shall I provide separate CRS self-certification forms for each branch?

Yes. Two separate forms will be required.

 

18.   Where can I find further information and advice?

For further information on your tax residency, please refer to the rules governing tax residence that have been published by each national tax authority. You can also find out more information at the OECD website http://www.oecd.org/tax/automatic-exchange/common-reporting-standard

The information contained herein does not constitute a tax/legal advice. For further information, please refer to your local regulations, OECD website, or your tax/legal advisor.

1.       What is the Common Reporting Standard?
The Common Reporting Standard (CRS) is a new information gathering and reporting requirement for financial institutions in participating countries, to help fight against tax evasion and protect the integrity of tax systems. For the complete list of participating countries, please refer to the OECD Website http://www.oecd.org/tax/automatic-exchange/common-reporting-standard

2.       Who is reportable?
The CRS seeks to establish the tax residency of customers, therefore, financial institutions are required to identify customers who appear to be tax resident outside of the country where they hold their accounts and products, and report certain information to the local tax authority. The local tax authority may then share that information with the tax authority where the customer is tax resident.

3.       Why are you asking me for my jurisdiction(s) of tax residency?
Under the CRS, tax authorities require financial institutions such as ADIB to collect and report certain information relating to their customers' tax residency status. If you open a new bank account, invest in new financial products or change your circumstances in some way, we will ask you to certify a number of details about yourself. This process is called "self-certification" and we are required to collect this information under the CRS.

4.       How is my/our tax residence defined?
For entities, this is typically where the entity has an obligation to file a tax return or liable to pay income or corporation taxes. Please contact a professional tax / legal advisor or check the OECD website for more information on how to determine your tax residency, as ADIB cannot give tax advice.

5.       What is required from company/entity accounts?
Accounts opened by non-individuals customers such as a company, branch of a foreign company, partnership or trust are referred to as 'Entity Accounts'. ADIB will ask questions regarding the tax residence status of such an entity classification, and in some circumstances for details of individuals who are shareholders or directors or controllers of the entity, or who are the beneficiaries of a trust.

 

6.       How often do we need to provide information under the CRS?
Information needs to be provided once. The customer is required to provide an updated form, in case of change in customer circumstances which may indicate a change in tax residency status. Customers are encouraged to update bank records accordingly. In addition, Abu Dhabi Islamic Bank may ask for updated information as and when deemed necessary.

7.       What if a customer does not have a Tax Identification Number (TIN)?
There is a possibility that certain countries do not issue Tax Identification Numbers. In such a case, a customer is required to provide details as to why it has no TIN in the self-certification. Jurisdictional guidance on TINs (or functional equivalents) can be found on the OECD Website.

 

8.       What information ADIB will request customers to provide and report to local tax authority?
Under the CRS, financial institutions are required to obtain the following information from customers and report to local tax authorities:- - Name - Address - Jurisdiction(s) of tax residence - TIN(s) - Name of the Reporting Financial Institution - Account number - Account balance - Gross amount paid to the account in a year (Profit, dividends, other income) - Gross proceeds paid or credited to the account Additional information in relation to Controlling Persons may include: - Date of birth - Place of birth

 

9.       Will ADIB share my data with other parties?
ADIB is obligated to share the information with its local tax authority (or equivalent) who will then share the information with other tax authorities where the customer is a resident for tax purposes.

 

10.   Will ADIB respect my data privacy?
ADIB is subject to strict confidentiality requirements and data safeguards as outlined under the local law. As per regulatory requirements, the information is only exchanged with the tax authorities of the relevant country.

 

11.   What will happen if I do not provide the required information?
CRS is a mandatory requirement mandated by the concerned UAE authority In case you do not want to provide the required information then we will not be able to proceed with your request for banking with ADIB.

12.   If I have already given my consent to share the information under FATCA, why do I need to give it again?

Even if you have already provided information under FATCA, you may still need to provide additional information under CRS, as FATCA is restricted to U.S. customers and CRS focuses on tax residents of participating jurisdictions.

13.   Is the CRS form mandatory for all customers like US nationals and nationals of countries not participating in the CRS?

The tax residency status of all customers should be identified although customers may be resident in the US, they may also be tax resident in other jurisdictions.

 

14.   Can the POA or authorized signatory provide the CRS self-certification on behalf of the entity/controlling persons? And will he/she be reported under the CRS?
The POA or authorized signatory can provide the certification on behalf of the entity/controlling persons as the CRS self-certification form is required for the account holder only. The POA or authorized signatory will be reported if he/she maintains a separate account with ADIB and if he/she is a tax resident in one or more of the participating jurisdictions.

 

15.   If there is a Reporting Financial Institution in the ownership chain between the Passive NFE and the Controlling Person, does the CRS allow the bank to not determine/report such Controlling Person?
No, the CRS status of intermediate Entities in the ownership chain is irrelevant for these purposes.

 

16.   Which jurisdiction's rules should apply to determine an Entity's status?

• The CRS provides that an Entity's status as a Financial Institution or nonfinancial entity (NFE) should be resolved under the laws of the Participating Jurisdiction in which the Entity is resident.
• If an Entity is resident in a jurisdiction that has not implemented the CRS, the rules of the jurisdiction in which the account is maintained determine the Entity's status as a Financial Institution or NFE since there are no other rules available.
• When determining an Entity's status as an active or passive NFE, the rules of the jurisdiction in which the account is maintained determine the Entity's status. However, a jurisdiction in which the account is maintained may permit (e.g. in its domestic implementation guidance) an Entity to determine its status as an active or passive NFE under the rules of the jurisdiction in which the Entity is resident provided that the jurisdiction in which the Entity is resident has implemented the CRS.

17.   What are the tax residency points an account holder needs to consider?

• Determine and monitor the tax residency status of the individual or entity based on management and control and / or incorporation.
• Tax residency of an individual or entity is not fixed.
• Multiple tax residencies are possible in the same year.
• Different tax residencies are possible in subsequent years.

18.   Will the change in the residency status impact the reporting (i.e. non-Resident becomes resident, cancellation of residency status of an existing resident)?
Yes. It is clearly stated in the certification that the customer will advise Abu Dhabi Islamic about the change of his tax residency status or any other information provided in the form within 30 days and will provide an updated self-certification within 90 days.

19.   If I have an existing relationship with another branch of Abu Dhabi Islamic Bank in a different jurisdiction, shall I provide separate CRS self-certification forms for each branch?
Yes. Two separate forms will be required.

20.   Where can I find further information and advice
For further information on your tax residency, please refer to the rules governing tax residence that have been published by each national tax authority. You can also find out more information at the OECD website http://www.oecd.org/tax/automatic-exchange/common-reporting-standard

The information contained herein does not constitute a tax/legal advice. For further information, please refer to your local regulations, OECD website, or your tax/legal advisor.​​​​​​​