An inventory of financial account information involving more than a hundred countries around the world is under way, and global taxation has arrived! In the last five days, CRS, a tax exchange agreement between Canada and Australia, will be put into effect.
It is said that the mood of some people who have overseas financial accounts and intend to open an account is as follows:
"I`ll just save a few hundred bucks and fill in the tax number?"
"less than $1 million, to be exchanged?"
"if the address is written in China, will foreign banks doubt that I am a non-local resident?"
Congratulations, these concerns are all right!
Now, whether in Canada, Australia or China, as long as you have $ two hundred and fifty thousand in bank deposits, you`re in trouble! If your savings can go up to C $1 million or US $, it`s even more high-risk!
The tax exchange agreement CRS (Common Reporting Standard, which Canada participates in, translated into Chinese as "Common reporting guidelines", also known as "uniform reporting Standards", will begin to participate in practice on September 1, and the Chinese side has already announced this before. In principle, bank deposits in mainland China up to $ two hundred and fifty thousand, their account information will be sent to the country concerned. As to whether or not the holder is Canadian, it is not a determining factor. If the holder is an unnaturalized immigrant, but is a tax resident, it is also included in this category.
At present, there are more than 110 countries and regions participating in the CRS Action Programme. Under the framework of the International multilateral tax Collection Convention led by the OECD (OECD), China is an automatic exchange standard for tax-related information on financial accounts established by six ministries of the country. As an anti-tax avoidance action, the fight against tax evasion and money-laundering.
In this framework, individuals and companies in the global financial (bank) accounts, are the target of monitoring.
Concerns have been raised over the fact that non-Canadian residents (non-residents) have been interpreted differently by different media outlets. In fact, the Canadian Inland Revenue Authority refers to non-Canadian residents in tax matters, and it should be called tax non-residents more accurate. People in the industry say that it is inaccurate for someone to classify foreign students as tax non-residents. The vast majority of international students live here, tax returns, of course, tax residents, on the contrary, some maple card holders because they do not live in Canada and become tax non-residents, including Canada`s citizen can also be tax non-residents.
In Australia, the definition is the same.
Although the exchange of financial information between China and Canada under the CRS agreement is only tax non-resident financial information, will only affect a very small number of people, but with the deepening cooperation between China and Canada, the future declaration of overseas income will also have a significant impact.
Earlier, Canada`s tax director Andrew attended the 10th tax Collection Forum meeting with China`s State Administration of Taxation Director Wang Jun in Beijing. The two sides exchanged views on Sino-Canadian tax cooperation and signed the Memorandum of understanding on Technical Cooperation between the State Administration of Taxation of the people`s Republic of China and the Canadian Taxation Bureau in 2016 / 2018. This is the first cooperation document signed by the State Administration of Taxation and the Canadian Taxation Service, marking a new level of tax cooperation between China and Canada. According to the memorandum of understanding, the tax authorities of China and Canada will further strengthen cooperation and exchange in tax policy and administration between 2016 and 2018.
China`s authorities reported that the financial accounts sector was denominated in dollars and individuals defined as low-and high-value accounts at $1 million, with entities at $ two hundred and fifty thousand. Both low-and high-value accounts will be monitored, and high-value will be a priority monitoring object.
The exchange of information includes:
- Overseas institutional accounts: financial institutions including deposit institutions, trustees, investment institutions, and specific insurance companies.
- Asset information: deposit accounts, escrow accounts, annuity contracts, cash preservation contracts, equity rights and interests of financial institutions.
- Account contents: account and account balance, name and date of birth, tax place of residence, annual payment to or accounting for the total amount of the account.
The determination of tax residents in China:
- The first class is Chinese citizen and foreign nationals who have domicile in China. Excludes overseas Chinese with Chinese nationality who have not settled in mainland and compatriots living in Hong Kong, Macao and Taiwan.
- A foreigner who is resident within the territory of China and who, within a tax year, leaves the country for not more than 30 days at a time, or for a cumulative period of not more than 90 days on multiple departures, The international exchange of information between overseas Chinese and compatriots in Hong Kong, Macao and Taiwan is determined by tax resident status, not by nationality.
Financial account tax information will be exchanged. Chinese tax residents will be exchanged at home and non-Chinese tax residents will be exchanged abroad. There will be no liability risk if the information and data are kept for no less than five years, if the tax residents in China declare their taxes in good faith and truthfully. If after the end of each year, there is an annual income of more than $ one hundred and twenty thousand self-check declaration system, as long as the true payment of tax, can be safe.
Fine solution CRS
In July 2014, the OECD (OECD) issued the "automatic Exchange Standard for tax-related Information in Financial accounts" (Common Reporting Standard, for CRS). That means, partners, we have to take care of tax evasion. Why don`t we all exchange information about each other`s country`s citizen in its own financial account? China is one of the 100 countries and regions that have already expressed their participation as soon as the standards are released and received wide-ranging responses from countries and regions.
In May 2017, China issued the measures for due diligence on tax-related Information in non-resident Financial accounts (measures for Administration), which will exchange information for the first time in September 2018.
Some of the children`s shoes have already received the individual tax resident self-certification form required by financial institutions. This is the case with the Hongkong Bank of Hong Kong, and other banks are very much the same:.
Mainly from the following points:
- Now address. As big as the country, small to the number of the door, must be clearly written.
- Correspondence address. The request is as above.
- Tax number. Generally ID number, it is said that this small number let a lot of new account back.
- Account number.
If you can`t provide a tax number, you have to fill in a reason that basically satisfies any reason, and the account holder is either rich or expensive. For example:
- Their own country to all residents do not issue identity cards;
- The state sends other people but does not send their own identity cards (to explain why it cannot be obtained);
- Or special approval can not write the tax number, and so on.
The Chinese version of CRS has also begun to be fully tuned. Since the target accounts under due diligence include deposit accounts, escrow accounts, equity or creditor`s rights interests of investment institutions, insurance contracts or annuity contracts with cash value, Therefore, the purchase of financial insurance and annuity insurance should also fill in similar forms.
The personal tax resident status and statement form of an insurance company in China is as follows-
The form requires the following three identities to be checked and it is difficult for persons with basic dual nationality or long-term overseas residence status to pass:
- Only tax residents in China (if you have relevant identity information outside China, please fill in detailed reasons in item 7 of tax resident Information);
- Non-resident only;
- . He is not only a tax resident of China but also a tax resident of other countries (regions).
It is understood that the current approach to insurance companies is generally new policy holders to fill in similar to the above statement form. Inventory policies will gradually complete information validation in accordance with regulatory requirements when receiving policy benefits or making changes.
A person from the risk Management Department of a foreign-funded insurance company told reporters that the Chinese version of CRS is aimed at foreign tax residents, and there are not many foreigners buying high-cash-value insurance policies in China. For domestic residents, Fill in the above-mentioned personal tax certificate form content is also relatively simple, so the customer does not have much antipathy, but it does not affect the sales.
Upon completion of the survey of financial account information, the countries concerned will begin to exchange information on non-resident financial accounts in the following manner:
A number of mainland banks, including the big four industrial and agricultural banks and CITIC, are also rolling out large-scale non-resident account checks. What did the bank do at the end of this year, which was previously published in China, the brokerage firm, to check rich people`s accounts at the end of the year? Four questions relate to you > have been described in detail.
At present, the financial institutions are implementing the OECD standard, personal tax information survey elements are the same, tax identification number and address are the financial institutions to identify whether non-residents of the two sharp weapons.
