Singapore, as many other countries that have endorsed the automatic exchange of information, has commenced on preparing grounds for the exchange. To initiate the procedure in 2018, Singapore banks will have to define countries of their clients’ tax residence status in order to forward the information to the respective tax authorities.
What is indeed interesting is that the clients that have opened their accounts before January 1, 2017 will be directly contacted by banks to inquire about their location of residence. In order to set up a new bank account, clients will be requested to indicate their residency in a relevant questionnaire. Apart from the country, the information to be disclosed includes the tax payer’s identification number.
Any misinformation on Singapore bank clients’ tax residency will be punished with a S$10,000 penalty and/or up to 2-years imprisonment.