In recent months, many account holders in Thailand have received requests from their banks to provide additional information under the Common Reporting Standard (CRS) or the Foreign Account Tax Compliance Act (FATCA). These initiatives are part of Thailand’s commitment to global tax compliance, enhancing transparency and deterring tax evasion.
Thai banks, including major institutions like Kasikorn Bank, are actively reaching out to customers to ensure compliance with these international frameworks. As Kasikorn Bank explains in its communication:
As part of Thailand’s participation in the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA CRS), financial institutions are obligated to submit certain information to the Revenue Department.
This article will explain these requests, why they are being made, and how to respond effectively to ensure your compliance with FATCA and CRS requirements.
Background on FATCA and CRS
The Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) are two significant frameworks designed to combat tax evasion and promote global financial transparency.
- FATCA: Introduced by the United States, FATCA requires foreign financial institutions to report information about accounts held by U.S. taxpayers to the Internal Revenue Service (IRS). It aims to ensure U.S. citizens and residents comply with tax obligations, even for overseas assets.
- CRS: Developed by the Organisation for Economic Co-operation and Development (OECD), CRS establishes a global standard for the automatic exchange of financial account information between participating jurisdictions. Over 120 countries, including Thailand, are part of the CRS framework.
Thailand formally adopted CRS in 2020, solidifying its commitment to global tax transparency. This adoption included the enactment of the Emergency Decree on Exchange of Information for Compliance with International Agreements on Taxation, B.E. 2566 (2023). This legislation provides the legal foundation for Thai financial institutions to collect and share financial account data with the Revenue Department, which then exchanges this information with other CRS-participating countries.
For more detailed information on how CRS works and its implications for account holders in Thailand, see our article How CRS Enables Thailand’s Tax Authorities to Track Your Finances.
This framework represents a significant step in aligning Thailand’s tax practices with international standards and ensuring individuals fulfil their global tax obligations.
CRS in the Thai Context: How It Works
In Thailand, the implementation of the Common Reporting Standard (CRS) is managed by the Thai Revenue Department (TRD) as part of the country’s commitment to global tax compliance. Under CRS, financial institutions are required to identify and report account holders who may have tax obligations in other participating jurisdictions.
Banks’ Responsibilities Under CRS
Thai financial institutions, such as banks, investment entities, and certain insurance companies, are designated as Reporting Financial Institutions under CRS. These institutions must:
- Identify account holders who qualify as Reportable Persons (e.g., individuals or entities with tax residency in a CRS-participating country).
- Collect and verify self-certification forms and other relevant documentation.
- Report specified financial account information to the Thai Revenue Department, including:
- Account balances.
- Interest, dividends, and other financial income.
- Transactions involving certain financial accounts.
- This information is then shared with the tax authorities in the respective jurisdictions of the account holders under the automatic exchange of information framework.
TRD Guidance on Common Reporting Standards
For further guidance, the Thai Revenue Department provides detailed documentation on CRS, including specific obligations for account holders and financial institutions. You can access the official TRD Guidance on Common Reporting Standard (CRS) in English here for more information on compliance requirements and procedures.
By taking these steps, Thailand continues to align itself with international taxation standards, requiring greater transparency in financial reporting.
Kasikorn Bank’s Request of CRS/FATCA Information
Kasikorn Bank is the first Thai bank to request CRS-related details from expat account holders. In their communication, the bank outlines the required steps:
As part of Thailand’s participation in the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA CRS), financial institutions are obligated to submit certain information to the Revenue Department, Ministry of Finance, in accordance with the Emergency Decree on Exchange of Information for Compliance with International Agreements on Taxation, B.E. 2566 (2023) and related regulations (hereinafter collectively referred to as the “CRS”).
In light of these requirements, we kindly request your cooperation in completing the following steps:
Complete and sign the attached forms, which include: 1.1 FATCA/CRS Individual Self-Certification, 1.2 IRS Form W-9 (if applicable), and 1.3 IRS Form W-8BEN (if applicable);
Provide a certified true copy of your passport; and
Return the completed forms and document(s) abovementioned to us by email at K-CustomerFATCACRSUpdate@kasikornbank.com no later than December 20, 2024.
Kasikorn Bank’s proactive stance will likely be mirrored by other Thai banks in the coming months as part of their compliance obligations under CRS. Expats in Thailand are encouraged to prepare for similar requests from their banks and respond promptly to ensure their accounts remain active.
Why Thai Banks Are Requesting This Information
Thai banks, such as Kasikorn Bank, must collect and report detailed account holder information as part of Thailand’s compliance with the Common Reporting Standard (CRS). This requirement is rooted in the global push for tax transparency and accountability, which aims to combat tax evasion by automatically exchanging financial account information.
The Purpose of CRS Compliance
Under CRS, financial institutions are required to:
- Identify customers who may have tax obligations in other jurisdictions.
- Gather sufficient information to determine whether an account is “reportable” based on tax residency.
- Share this information with the Thai Revenue Department, which exchanges it with other global tax authorities.
By requesting CRS self-certifications, banks ensure that they:
- Fulfil their legal obligations under the Emergency Decree on Exchange of Information for Compliance with International Agreements on Taxation, B.E. 2566 (2023).
- Avoid penalties or non-compliance issues from failing to report accurate customer data.
What Happens If You Don’t Comply
For account holders, failure to respond to CRS-related requests can lead to:
- Restrictions on banking services, such as limited account access.
- Potential account closure if compliance requirements are not met.
While Kasikorn Bank is currently leading this effort, other Thai banks are expected to adopt similar measures soon. This underscores the importance of responding promptly to your bank’s CRS or FATCA-related requests.
Consequences of Not Responding to CRS Requests
Failing to respond to CRS-related requests from your bank can have significant implications, both for your banking relationship and your broader tax compliance obligations. Thai banks, including Kasikorn Bank, are legally required to report account holders’ information to the Revenue Department. Non-compliance on your part can lead to the following consequences:
Bank-Specific Penalties
- Account Restrictions: Banks may restrict access to your account, limiting transactions or other services until compliance requirements are met.
- Account Closure: Persistent failure to respond could result in account termination, leaving you without access to essential banking services in Thailand.
Broader Risks for Expats
- Increased Tax Scrutiny: Failure to provide accurate information may raise red flags with tax authorities, leading to potential audits or investigations in your home country or Thailand.
- Global Financial Reporting Impact: CRS ensures that account details are shared globally. Non-compliance in one jurisdiction may trigger inquiries in others.
Protecting Your Personal Information
Kasikorn Bank has reassured account holders that their requests for CRS-related information are legitimate and conducted securely. They have stated:
Please be informed that, in accordance with our policy, none of your personal information shall be requested via telephone or SMS.
This highlights the importance of remaining vigilant against potential scams. Always verify requests and ensure you submit sensitive information only through official channels, such as designated bank email addresses.
Completing Thai Bank FATCA/CRS Forms
As part of the compliance process, Kasikorn Bank requires account holders to complete specific forms based on their tax residency and obligations:
- CRS Individual Self-Certification Form: This form is required for all reportable individuals to confirm their tax residency status. It assists the bank in determining whether your account information needs to be reported to the Thai Revenue Department under the Common Reporting Standard. You can download the form directly from Kasikorn Bank’s official website: CRS Individual Self-Certification Form
- IRS Form W-9: This form is for U.S. citizens, residents, or entities with U.S. tax obligations. By completing Form W-9, you provide your Taxpayer Identification Number (TIN) and certify your U.S. tax status. The latest version of the form is available on the IRS website: IRS Form W-9
- IRS Form W-8BEN: This form is for non-U.S. persons declaring they are not subject to U.S. tax obligations. It certifies your foreign status and, if applicable, allows you to claim benefits under an income tax treaty. You can access the form here: IRS Form W-8BEN.
Please ensure you complete and submit the appropriate forms as requested by Kasikorn Bank to comply with international tax regulations and avoid any disruptions to your banking services.
Watch Our Video: FATCA & CRS Explained: Step-by-Step Compliance Guide for Expats in Thailand
Our recent webinar explains Thai Bank CRS/FATCA requests in detail, provides step-by-step guidance on completing the forms and answers many audience questions.
Thai Tax Identification Number (TIN): Do You Need One?
For many expats in Thailand, the question of whether a Thai Tax Identification Number (TIN) is required depends on their tax residency and income sources. Under Thai law, a TIN is necessary if you have taxable income in Thailand or meet the criteria for tax residency.
Do You Need a Thai TIN?
You will likely need a TIN if:
- You are a Thai tax resident, spending 180 days or more in Thailand within a calendar year, and you earn or remit taxable income to Thailand.
- You have income generated in Thailand, such as salaries, business income, or rental income.
- You remit foreign-sourced income to Thailand in the same year it was earned.
If you meet any of these criteria, obtaining a TIN is essential to ensure compliance with Thai tax regulations and avoid complications when filing tax returns or responding to CRS requests.
The Importance of Accurate Self-Certification
Banks like Kasikorn Bank may require your TIN to verify your tax residency status as part of the CRS compliance process. Providing accurate information in self-certification forms is crucial. Kasikorn Bank advises account holders to consult a tax advisor to ensure all details are correct, especially for expats with complex tax situations.
Need Help Applying for a TIN?
Expat Tax Thailand offers a convenient online TIN application service to assist expats in obtaining their Tax Identification Number quickly and efficiently. Our service includes:
- Guidance through the application process.
- Ensuring all necessary documentation is prepared and submitted.
- Support for any questions or issues that arise.
Learn more about our Thai TIN application service here.
For a deeper understanding of TIN requirements and how they apply to you, visit our detailed guide: Tax Identification Number in Thailand.
How We Can Help
Navigating CRS and FATCA compliance can be complex, especially for expats with financial interests spanning multiple jurisdictions. If you are unsure about your obligations or need help completing the necessary forms, our team at Expat Tax Thailand is here to support you.
- CRS and FATCA Compliance: Assistance with completing self-certification forms and understanding your tax residency obligations.
- Tax Identification Number (TIN) Applications: Guidance through the TIN application process for Thai tax compliance.
- Professional Tax Advice: Tailored solutions for expats to ensure compliance and avoid unnecessary risks.
Book a Free Consultation
If you have any doubts or questions, don’t hesitate to contact us. Our experienced support team is ready to assist you. Schedule a free consultation today to discuss your situation with our experts.
