What Is the Common Reporting Standard (CRS) and How It Works

On 27 October 2025 the Indonesian Directorate General of Taxes described the Common Reporting Standard (CRS) as an international framework for the automatic exchange of taxpayers’ financial account data between jurisdictions. CRS requires financial institutions to collect account information and submit periodic reports each calendar year.

The standard was created because cross‑border transactions often leave tax authorities without complete data, while bank secrecy laws limit access. The G20 and OECD therefore launched the Automatic Exchange of Information (AEoI) programme, with CRS defining the account types, reporting institutions, and due‑diligence procedures. In Indonesia, CRS reporting is governed by regulations PMK 70/2017 through PMK 47/2024 and operates under multilateral agreements such as MAAC and CRS MCAA, as well as bilateral accords like the BCAA.

Through CRS, the tax authority can obtain automatic reports from reporting financial institutions—including banks, insurers, and investment entities—for tax purposes. Non‑reporting institutions must still register but are exempt from automatic filing. The system aims to improve tax transparency and curb avoidance.