No. 1: Chinese who have immigrated.

According to the content of the CRS agreement, if financial assets are hidden in China, they are likely to be disclosed to the country of immigration. At the same time, they are likely to face back taxes, various fines, and even criminal liability.

No. 2: People with financial asset allocation overseas.

After the implementation of CRS, as long as you are Chinese (regardless of immigration) and have the following financial assets overseas (including Hong Kong): deposit account, custody account, cash value insurance policy, annuity contract, securities account, futures Accounts, holding equity/debt interests in financial institutions, etc.

The countries or regions where the above-mentioned financial assets are stored will also disclose the financial assets held by the holders to the Mainland China Taxation Bureau.

No. 3: People who hold shell companies overseas for investment and financial management.

Chinese people have established companies in overseas taxation areas with very favorable taxes, and have opened accounts in banks and other financial institutions to hold assets through the company, or used company accounts for financial management or consumption. Such companies may be recognized It is a "passive non-financial institution" (i.e. shell company).

After the implementation of CRS, you, as the actual controller of the company, and the financial assets owned by both layers of the company will be required to disclose, and it will become more difficult to use the name of a shell company to avoid taxes.

Extended information

China promised to implement AEOI (Standard for Automatic Exchange of Financial Account Information inTax Matters) as early as September 2014

In December 2015, China formally signed the "Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Tax-related Information."

Before June 30, 2018 (estimated), complete the first information submission to the State Administration of Taxation, and submit information to the State Administration of Taxation regularly every year in the following years.

Before September 30, 2018, China will complete the first inter-jurisdictional information exchange with other jurisdictions participating in CRS, and will also conduct regular inter-jurisdictional information exchanges every year in the following years.

Before December 31, 2018, complete the due diligence process for all remaining existing customers and identify non-resident accounts among them.

Baidu Encyclopedia-CRS