As a payment institution, Shine is obliged to ask you for certain personal details.
How do you know if your tax residence is abroad?
Dutch tax residency is not based on a fixed checklist, the authority looks at where your overall centre of life is located. No single factor decides it on its own; they are weighed together.
Personal ties: where your home, family, and day-to-day life are based
Economic ties: where you work, run a business, or hold Dutch bank accounts/employment income
Time spent in the Netherlands: a relevant factor, but the 183-day per year threshold alone does not determine residency as it does in some other countries
Municipal registration (BRP): registering at a Dutch address is treated as strong evidence of residency and will generally trigger a Dutch tax file, even before the other factors are assessed
Why am I being asked if I have a tax residence abroad?
Shine is a payment institution and must comply with the law, in particular the CRS regulation (you will find an explanation of this law below).
Under this agreement between different countries, Shine has a legal obligation to report your account balance and your financial income for the year to the tax authorities in your country of tax residence (if that country is not the Netherlands).
What is the Common Reporting Standard (CRS)?
It is a standard introduced at the request of the G8 and the G20 (groups of industrialised countries) to improve transparency and the automatic exchange of tax information. It enables the tax authorities of the member countries of these groups to systematically identify the financial assets held abroad by their tax residents.
It is in order to comply with this regulation that Shine needs to know its clients’ tax residence.