FATCA & CRS, What’s the difference?
Posted: Monday 25 March 2024
Distinguishing between FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) is key in understanding their roles in combatting global tax evasion and the importance of accurate and compliant reporting.
While both initiatives share the overarching objective of curbing offshore tax evasion, they operate differently.
FATCA primarily focuses on identifying tax evasion by U.S. Persons, whereas CRS targets offshore tax evasion based on an account holder's country (or countries) of tax residence.
Consequently, CRS has a broader reach, affecting a wider spectrum of individuals and entities, as it mandates financial institutions to report information about account holders' tax residency to their respective tax authorities.
Both FATCA and CRS are pivotal tools in the global effort against tax evasion, ensuring equitable tax contributions and bolstering the economies of their respective nations and both require information to be submitted in .xml format.
Our TDE (Tax Data Exchange) Software supports both FATCA and CRS reporting, offering streamlined, automated reporting solutions that can help you manage your compliance requirements efficiently.
