What is the Common Reporting Standard (CRS)?

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.

Who is reportable?

The CRS seeks to establish the tax residency of customers. Under the CRS, 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 our local tax authority. They may then share that information with the tax authority where you are tax resident.

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

Under the CRS, tax authorities require financial institutions such as FWD Takaful Berhad to collect and report certain information relating to their customers’ tax statuses.

If you participate in a new takaful certificate (on boarding stage), 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.

Are all Insurance Company or Takaful Operator doing this?

All financial institutions – that includes banks, insurers and asset management businesses – in participating countries are required to be compliant with the CRS.

What information are you asking customers to provide and verify?

In line with Inland Revenue Board of Malaysia we will be asking your “self-certification” which will be provided by FWD Takaful Berhad.

How is my tax residency defined?

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 FWD Takaful Berhad cannot give tax advice.

The information I have been asked for on the forms is similar to the information I have been asked under Foreign Account Tax Compliance Act (FATCA). Why is this different?

Even if you have already provided information under the United States government’s FATCA, you may still need to provide additional information for the CRS as there are different regulations with different requirement.

FATCA is US Law and requires financial institutions to identify US Persons and report in line with local FATCA regulations, based on citizenship. The CRS requires financial institutions to identify the tax residency of all our customers and in most cases report information on customers who are tax resident outside of country where they hold their account.

How often will I need to provide this information?

Once we have a valid self-certification on file, you will only be asked to complete another when you update certain information on your account or we believe your reportable status may have changed.

Why is FWD Takaful Berhad providing tax authorities (Inland Revenue Board of Malaysia) with my tax details?

FWD Takaful Berhad is required to report your tax details under the legal obligations introduced by countries participating in the CRS. As 15 January 2019, there are 64 reporting jurisdictions participating in CRS. Do refer to the attachment for more details on the CRS List of Participating Jurisdiction established of Inland Revenue Board of Malaysia.

Will FWD Takaful Berhad respect my data privacy?

FWD Takaful Berhad will respect your data privacy. We will only disclose your information to the relevant tax authorities if we are required to do so.

Is my information safe?

Customer information is protected by a strict code of secrecy and security which all members of the FWD Group, their staff and third parties are subject to.

I have provided you with my details. Why are you asking me for supporting documents?

We are required by law to verify the details you have provided as part of your self-certification. FWD Takaful Berhad might ask you for a copy of your passport to verify your identity or for some other evidence of your tax residency declared in your self-certification.

What information will be reported to tax authorities?

The information reported to tax authorities will have been provided in the self-certification form, and details about the certificate and products you have with us, including:

  • Total aggregate contribution for in scope CRS product. 
  • Total cash value of the in-scope CRS product.

Which countries are participating in the CRS?

As at 15 January 2019, there are 64 (including Malaysia) reportable jurisdictions under CRS. Please refer to http://www.hasil.gov.my for the latest list of reportable jurisdictions.

For FWD Takaful Berhad, what are the product impacted under CRS?

All products with a cash value (in scope) which include:

  • LifeSelect Regular Investment – Linked Plan (LS3/LS2/LSR/ZSR)
  • LifeSelect Single Investment – Linked Plan (LSS)
  • LifeStyle Protector (LPP/ZPP)
  • LifeStyle Protector Plus (LPS/ZPS)
  • LifeStyle Protector (Premier) (ELP)
  • LifeStyle Protector Plus (Premier) (ELS)
  • Keyman Protector (KMP/ZMP)
  • Keyman Protector Plus (KMS/ZMS)
  • HealthCash (HSP)
  • Lifestyle Saver (LSP/ZSP)
  • Takaful Retirement Plan – Single Contribution (TRP)
  • Takaful Retirement Plan – Regular Contribution (TRR)
  • Takaful Simple Life (TSL)
  • Takaful Reducing Term Cover (TTC)
  • Takaful Education Plan – Single Contribution (EDS)
  • Takaful Education Plan – Regular Contribution (EDR)
  • Takaful Future Smart Plan (HS1)
  • Takaful FutureSecure (LVS)

Where can I find further information and advice?

For further information you can refer to http://www.hasil.gov.my. You can also find out more at the OECD Automatic Exchange of Information Portal.

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