The full name of CRS is the common declaration criterion, which is the tax information exchanged between countries and regions, mainly to check whether taxpayers have fulfilled their tax obligations according to law. At present, developed countries all over the world have joined CRS, including Singapore. Its purpose is to check tax information. That is to say, if tax evasion is found in an account in Singapore, because the relevant tax information is shared and exchanged, the account in Singapore will be sealed up by China. Conversely, if tax evasion occurs in an account in China, Singapore will also seal up the account in China.
The process of tax exchange is that tax information of tax residents in China will be submitted to financial institutions in China, financial institutions in China will submit tax information to tax authorities in China, and then tax authorities in China will share data with overseas tax authorities, which will share data with overseas financial institutions, and these data come from overseas tax residents in China.
The relevant exchange information is mainly financial assets, but does not include real estate. Basic information of all China tax residents who have opened accounts abroad, such as their names, ID numbers, addresses, birthdays, account numbers, account balances, major transactions that occur every year, bank deposit accounts, custody accounts, insurance contracts and other information, will be shared synchronously with China.
At present, the scope of collection includes overseas financial assets, including deposit accounts, custody accounts, cash value policies, annuity contracts, securities accounts, futures accounts, holding equity bonds of financial institutions, etc. Non-financial assets such as overseas real estate, yachts, vehicles, antique calligraphy and painting, jewelry, artworks and cash are not included.
At present, 60 countries have joined CRS, and residents in China will directly sign relevant agreements and declarations when opening accounts.