Why do we ask for CRS information?
The Common Reporting Standard (CRS) is a global standard developed by the OECD for the automatic exchange of financial information between countries to ensure transparency and combat tax evasion.
As a regulated financial institution, Pliant is required to collect two key pieces of information for CRS purposes:
Your company's Tax Identification Number (TIN).
Your company's CRS classification (whether it is a Financial Institution, an Active Non-Financial Entity, or a Passive Non-Financial Entity).
To make this easy, we'll walk you through how to determine the correct CRS classification for your company in the sections below.
Is my company a Financial Institution?
Your organisation is considered a Financial Institution under CRS if it is one of the following:
Depository institution (e.g., savings bank, commercial bank, savings and loan association, credit union).
Custodial institution (e.g., mutual fund, custodian bank, broker, central securities depository).
Investment firm (e.g., an entity engaged in investing, reinvesting, or trading financial instruments; providing portfolio management; or administering and managing financial assets).
Specified insurance company with cash-value products or annuities.
Is my company an Active NFE?
Your organisation is an Active Non-Financial Entity ("NFE") if it meets at least one of the following criteria:
Operating company: Less than 50% of the gross income of your NFE is passive income and less than 50% of the assets generate passive income. Passive income under the CRS framework refers to income not derived from active business operations. It typically includes:
Dividends from shares or equity interests
Interest from deposits, bonds, or debt claims
Rents and royalties not tied to active business
Annuities and similar recurring payments
Net gains from selling or trading financial assets, such as stocks, derivatives, or foreign currency
Income from investment vehicles like trusts or certain partnerships primarily generating passive income
Publicly traded company: Your NFE’s stock is regularly traded on a recognized securities exchange or you are an affiliate of such a stock traded entity.
Governmental entity: Your NFE is a governmental entity, an international organization, a central bank, or an entity wholly owned by one or more of those types of organizations.
Holding company: Substantially all (typically 80% or more) of your NFE’s activities involve owning shares in one or more subsidiaries (excluding financial institutions) and providing them with services or financing.
Exception: If your organization is an investment fund or an investment vehicle, whose purpose is to acquire or finance companies and hold shares in those companies as fixed assets, then it does not qualify as an Active NFE.
Startup company: Your NFE was founded in the past 24 months and is not yet engaged in business and has not engaged in business in the past, but invests in assets with the intent to engage in business (other than that of a financial institution).
Restructuring: Your NFE is currently divesting its assets or restructuring with the intention of continuing or resuming an activity.
Exception: Your organization is not an Active NFE if it has been a financial institution for the past 5 years or it intends to resume the activity of a financial institution.
Treasury company: The activity of your NFE consists primarily of financing and hedging transactions with or for related entities, and it does not provide such services to entities that are not related entities.
Exception: If your organization belongs to a group that is primarily engaged in the business of a financial institution, it is not an Active NFE.
Non-profit organization: Your NFE meets all of the following requirements:
It is established and operated exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes, or it is a professional association, business association, chamber of commerce, labor association, agricultural or horticultural association, civic association, or organization operating exclusively for the promotion of welfare.
It is exempt from income tax.
It has no shareholders or members with ownership or beneficial interests in its income or assets.
Its income and assets may not be distributed to or used for the benefit of private individuals or non-charitable entities, except as arms-length compensation for services rendered or assets acquired by the NFE.
If the organization dissolves, all of its assets must go to a government body or to another non-profit.
Is my company a Passive NFE?
Your organisation is a Passive Non-Financial Entity if it does not classify as either:
A Financial Institution
An Active NFE
If your company is a professionally managed investment entity resident in a non-participating CRS jurisdiction, then it also qualifies as a Passive NFE. Non-participating jurisdictions are those that are not found on this official list from the OECD.
Need more help?
The guidance above is designed to help you determine your company's status. However, we understand that some corporate structures can be complex.
Consult an expert: While this guide covers the standard CRS rules, every business is unique. Pliant cannot provide legal or tax advice for your specific situation. If you are unsure about your company's classification, we recommend speaking with a member of your internal finance, legal, or compliance team. They are best placed to confirm your status.
Official OECD Guidance: For detailed information on the Common Reporting Standard, you can refer to the official OECD documentation here.