1, CRS is coming.
Simply put, it is to catch the "big fish" first, and then catch the "small fish" one year later.
On the evening of May 23rd, 20 17, State Taxation Administration of The People's Republic of China, the Ministry of Finance and the six ministries and commissions of "One Party, Three Meetings" jointly issued the Measures for the Administration of Due Diligence of Tax-related Information in Non-resident Financial Accounts (hereinafter referred to as the Measures), which was implemented in China on July 23rd, 1 2007, and was called "CRS" legislation in China.
The Measures stipulate that financial institutions such as banks, securities, trusts, futures and insurance companies shall conduct due diligence on non-resident financial accounts. The concept of "non-resident" refers to individuals and enterprises other than tax residents in China.
The criteria for determining whether to tax residents are not only overseas identification, but also overseas residence address, telephone number, account, etc. In other words, the concept of "tax resident" is more rigorous than identification, and it also includes traces of personal residence.
For newly opened accounts, the above financial institutions should distinguish whether they are non-residents when registering; For existing accounts, it is required to complete the investigation of high-net-worth customers (the total account balance exceeds 1 10,000 USD before June 30th) before 2017123/kloc-0, and before 2018/kloc-0. Simply put, it is to catch the "big fish" first, and then catch the "small fish" one year later.
For existing accounts of non-resident institutions, due diligence should be completed for accounts with a total balance of more than $250,000 before June 30, and there is no need to investigate accounts with a lower amount.
The information to be summarized includes the name, current address, taxpayer's resident country (region), taxpayer identification number, birthplace and date of birth of the non-resident account holder; Account number, single financial account balance, interest, dividends, etc.
2, in line with international standards
The United States was the first country to do so. In 20 10, the United States promulgated the Overseas Account Tax Compliance Act (FATCA), requiring foreign financial institutions to report the account information of American tax residents (including American citizens and green card holders) to the Internal Revenue Service, otherwise foreign financial institutions will be subject to 30% punitive withholding income tax when they receive specific income from the United States.
After signing this agreement with the United States, Spain, France, Italy, Germany, Britain and other European countries feel that this system is good and hope to adopt a similar multilateral model. All EU countries agree with this, so the OECD (Organization for Economic Cooperation and Development) has formulated a global version of the unified reporting standard, namely CRS, which is simpler than FATCA.
2065438+In July 2004, the OECD version of CRS was released. Later, G20 Summit hoped to spread to the whole world, and *** 100 countries joined in two batches. As a member of G20, China is the second country to join CRS.
Relevant persons of Standard Chartered Bank (China) told the reporter that the bank has set up a special working group to conduct CRS due diligence on customers on July 1 day through system upgrade, account opening process sorting, internal training and active communication with relevant customers.
3. People who are most afraid
There are two kinds of people who are most alarmed. First, international traders who rely on tax havens to do business. Second, rich people who lend money to the sea through illegal means such as underground banks.
An employee of a Hong Kong insurance company told reporters that under CRS, wealthy mainland businessmen are very anxious. They have always been low-key and cautious. Many wealthy businessmen try to avoid their names appearing on the rich list, and their global assets will be seen through. "They are very insecure."
4. Business generated by 4.CRS
How to avoid CRS has become a business.
Open Baidu search "CRS", and the top search results are the promotion links of "how to avoid CRS" promoted by various asset companies. How to avoid CRS has become a business.
In the market, there are two main "solutions": buying a passport or buying insurance.
Buying a passport means holding a passport from a country other than 100 CRS. However, according to the standard of "taxpayer", it is not enough to change the nationality, but also to confirm the residence information. In other words, if you buy a passport from a remote island like Dominica or Antigua, you have to move in with your family.
The second way is to buy insurance. For example, Chinese mainland, Taiwan Province Province and the United States are not covered by CRS at present, so the insurance products in these two regions are on fire.
The third way to avoid CRS is to hold non-financial assets, such as houses, jewelry and works of art, which are temporarily out of the scope of CRS due diligence.
In addition, the transnational disclosure of personal overseas real estate information is also quietly carried out in Europe. Starting from 20 15, EU countries will automatically exchange information on five major non-financial income and capital, including employment income, directors' fees, life insurance products, pensions, real estate ownership and real estate derivative income.
This means that after the transparency of financial accounts, the world is about to usher in the era of transparency of real estate information.
Well, it's really a good thing. How did the rich get rich? Now we must find a way to make it clear! Support the country!