CRS FAQs

Automatic Exchange of Information* (AEOI) is the exchange of information between countries without having to request it. It involves the systematic and periodic transmission of “bulk” taxpayer information between countries that have signed up to the AEOI.

AEOI exists to reduce global tax evasion.

*For any defined terms please see the Table of terms and definitions.

CRS* is the global equivalent of FATCA* and therefore does not replace FATCA but works with FATCA to combat tax evasion and achieve global tax transparency. The CRS seeks to establish the tax residency of clients and identify jurisdictions in which the client has tax obligations*. While FATCA requires tax reporting on US persons* only.

*For any defined terms please see the Table of terms and definitions.

Under the Common Reporting Standard* (CRS), financial institutions* (FI) are required to identify clients, being individuals or entities, who appear to either have tax obligations*, tax liabilities* or tax residencies* outside South Africa.  An entity* such as a partnership, limited liability partnership or similar legal arrangement that has no tax residence, shall be treated as tax resident in the jurisdiction in which its place of effective management* is situated.

Financial institutions* (FI) then report certain information to the South African Revenue Service* (SARS). SARS may then share that information with the tax authority(ies) where the account holder* has tax obligations*, tax liabilities* or tax residencies*.

*For any defined terms please see the Table of terms and definitions.

Under the Common Reporting Standard* (CRS), tax authorities require financial institutions* (FI) such as Nedbank to collect and report certain information relating to their client’s foreign tax obligation*, tax liabilities* or tax residencies*. 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 CRS.

It is important to remember that, although it is your responsibility to prove whether or not you have tax obligations*, tax liabilities* or tax residencies* outside South Africa; Nedbank is legislated to apply background reasonability tests to the self-certification that you have provided.

*For any defined terms please see the Table of terms and definitions.

Tax obligations* mean that you have current tax expenses. An example of a tax obligation would be that you must pay tax on your salary as and when the salary is earned.

*For any defined terms please see the Table of terms and definitions.

Tax liabilities* mean that you may have a future tax expense that could result in your having to pay more money to the South African Revenue Service* (SARS) than what you have anticipated. An example of a tax liability is when you earn rental income and must pay tax on that rental income to SARS in future.

*For any defined terms please see the Table of terms and definitions.

Tax residencies* look at whether you have been a resident of or have been physically present in a country for a certain amount of time, but the meaning of tax residency can differ from one country to the next. For individuals, physical presence in a country or jurisdiction is the main test for tax residency. Some countries also determine the tax residency of individuals by looking at factors like homeownership if you have long-term rented accommodation or if you have certain financial interests in that country.

For Entities* ‘tax residencies’ mean any person (other than an individual) which is incorporated, established, or formed in the country of onboarding or which has its place of effective management* in the county of onboarding, but does not include any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the governments of the country of onboarding and that  country for the avoidance of double taxation.

*For any defined terms please see the Table of terms and definitions.

Your tax residency looks at whether you have been a resident of or have been physically present in a country for a certain amount of time, but the meaning of tax residency can differ from one country to the next. For individuals, physical presence in a country or jurisdiction is the main test for tax residency. Some countries also determine the tax residency* of individuals by looking at factors like homeownership, if you have long-term rented accommodation, or if you have certain financial interests in that country.

Nedbank will try to assist you as much as possible, however, we are not able to provide tax advice. For this you may wish to consult an independent tax advisor as Nedbank employees are not tax advisors.

For more information visit the Organisation of Economic Co-Operation and Development* (OECD) website at https://www.oecd.org on how to determine your tax residency.

*For any defined terms please see the Table of terms and definitions.

Under the Common Reporting Standard* (CRS), Nedbank is legally required to establish whether any of our clients, have tax obligations*, tax liabilities* or tax residencies* outside South Africa, or not.  

Even if you live in the same country/jurisdiction as where you pay tax, Nedbank is required by law to confirm whether, or not, you have tax obligations*, tax liabilities* or tax residencies* outside South Africa.

*For any defined terms please see the Table of terms and definitions.

No. What needs to be reported to  the South African Revenue Service* (SARS) is determined by law.

*For any defined terms please see the Table of terms and definitions.

Nedbank is legally required to establish whether any of our clients, have tax obligations*, tax liabilities* or tax residencies* outside South Africa, or not. 

Nedbank will only provide tax authorities with your tax details where you have confirmed that you have tax obligations*, tax liabilities* or tax residences* outside South Africa.

Nedbank is required by law to perform a reasonability test to verify the details that you have provided in your Nedbank FATCA and CRS Self-certification form. We might ask you for a copy of your passport to verify your identity or for some other evidence of your tax residency / tax obligation* declared in your self-certification form.

*For any defined terms please see the Table of terms and definitions.

For a list of countries/jurisdictions participating in the CRS, alongside the dates that they have or will start exchanging information, please see the OECD CRS portal.

South African Revenue Service (SARS) has adopted the “wider approach” which means that we are required to obtain the country of tax residency*, or the country in which you have tax obligations* in for any country across the world.

*For any defined terms please see the Table of terms and definitions.