CRS (Global Tax Account Reporting Standards Act) came into effect on January 1st, 217!
This means that financial institutions in China have started to perform due diligence procedures in accordance with the "standards" since January 1, 217! Will Australian citizens and PR and other non-resident personal and corporate accounts! Including bank deposits and other information! Collect and submit it to State Taxation Administration of The People's Republic of China, China! After that, China Taxation Bureau and other tax bureaus exchange information with each other!
This policy also means that Australian citizens and PR have started to "streaking" their wealth in China!
all information will be exchanged in 218!
When PR Australia opens an account, personal information will be exchanged with ATO
For Australian Chinese, those who have obtained permanent residency in Australia, or overseas Chinese who have stayed abroad for more than a certain period of time, if they have become local tax residents according to the laws of the host country (region), they are non-resident individuals as defined in the Administrative Measures.
China financial institutions will identify their accounts opened in China according to the Administrative Measures, collect and submit account information, and State Taxation Administration of The People's Republic of China will exchange it with the tax authorities of the host country (region).
Similarly, for those who live abroad for a long time but are still tax residents in China, State Taxation Administration of The People's Republic of China, China will also exchange information with ATO, the Australian Taxation Bureau, to obtain their overseas account information.
After this measure is introduced, it means that as long as you deposit some money in the bank, ATO Australian Taxation Bureau will give this information to China.
however, what impact does CRS have on people who hold overseas assets? What assets need to be declared? Under what circumstances can I evade the declaration? Xiaobian sorted out some possible questions about CRS.
which asset types need CRS declaration?
CRS exchanges information on financial assets
Therefore, real estate purchased by Chinese or China investors in Australia
non-financial assets such as jewelry, calligraphy and painting do not need to be exchanged!
in addition, cash assets do not need to be exchanged.
Only the following information needs to be exchanged:
● Deposit account: that is, the money in everyone's bank!
● Custody account: a special deposit account opened by the custodian for the capital settlement settlement of the enterprise annuity fund under custody due to investment operation.
● Annuity contract: an equal amount of money received or paid at the beginning of each period at the same time interval within a certain period.
● Holding the equity/creditor's rights of financial institutions
Within 9 months after the end of the year, the China Taxation Bureau and the Australian Taxation Bureau will exchange information on the name, address, tax number, date of birth, account number and account balance, tax residence, annual amount and total amount of tax residents!
who will be affected by CRS?
● The first type is China tax residents who have overseas financial accounts, that is, any financial assets outside China, such as deposits, securities, investment insurance products, investment funds, trusts, etc., may be regarded as local non-resident financial accounts and exchanged information with China Taxation Bureau.
● The second type is non-China tax residents whose financial assets are in China (Australian PR and Australian temporary visa are held by the holders), that is, financial accounts in China will be regarded as "non-resident accounts" in China, and their account information will be collected, submitted and exchanged with the countries where their tax residents are located.
if you hold assets in Australia, what impact will CRS have on you?
If you own physical assets (such as houses, cars, land, yachts) in Australia, don't worry at all, because it is not covered by CRS.
But if it is a financial asset, you should be careful. For example, you have a stock account in Australia, or you have set up a bank account in Australia (whether it is a deposit account or an investment account).
The main information of these accounts will be collected, and by mid-218, financial institutions will report this information to the Australian Taxation Office.
Then, within the next three months, the Australian Taxation Office will report this information to the China Taxation Office.
what are the consequences of concealing or misreporting tax resident status?
If the identity of tax residents is intentionally concealed or misstated,
If it is found, it will be included in the money laundering list for relevant investigation.
In Australia, people suspected of money laundering are the highest or sentenced to
25 years' imprisonment!
can Australian citizens evade CRS declaration?
For example, if an Australian citizen works or lives in China, he also stays in China most of the time, including his family members who also live in China.
From the tax point of view, he will still be regarded as a tax resident in China.
Or a China citizen works or lives in Australia, and he also stays in China most of the time, including his family members.
then ATO will consider him a tax resident of Australia.
According to the regulations of Australian Taxation Bureau, there are differences between Australian tax residents and Australian Immigration Bureau.
Even if you are an overseas passport holder, you will be regarded as a tax resident of Australia!
Just meet the following requirements:
● Live in Australia
● Immigrate to Australia and live permanently in Australia
● Have lived in Australia continuously for more than six months or more, and have been engaged in the same job or lived in the same place most of the time.
● You have lived in Australia for more than half a fiscal year (even if your home is overseas, or you don't plan to live in Australia in the future)
● You have temporarily traveled overseas and have no plans to live permanently in another country.
● You are an international student who came to Australia to study and registered for a course for more than six months.
These people will be regarded as tax residents in Australia! And their financial system will be handed over by the Australian tax bureau!
after reading so much, I want to remind everyone! CRS policy has been implemented! Information will be exchanged in 218!