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CRS landed, China started global taxation! American real est
Guide reading:Asset Information: Deposit Account, Custody Account, Cash Value Insurance Contract, Annuity Contract, Equity/Bond Income of Holding Financial Institutions. Account Content: Account and Account Balance, Name and Date of Birth, Tax Residence, Annual
Recently, the news about CRS landing spread to the circle of friends of high net worth people, which is a global network of personal assets.
 
According to the latest news released by the OECD, China has formally extended the effectiveness of the Convention to Hong Kong and Macao Special Administrative Regions in accordance with Article 29 of the Multilateral Convention on Mutual Assistance in Tax Collection and Management (hereinafter referred to as the Convention). The Convention entered into force in Hong Kong and Macao on September 1, 2018. From then on, governments will control the state of national assets by "exchanging information" to determine whether they are tax evasion, bribery or money laundering.
 
The implementation of CRS means that with the advent of the era of automatic exchange of global tax information, overseas financial assets will be invisible.
 
What is CRS?
The full name of CRS is common reporting standard, which is the "Standard for Automatic Exchange of Tax-related Information in Financial Accounts" published by the Organisation for Economic Cooperation and Development (OECD). It is the "Unified Reporting Standard" for automatic exchange of tax-related information in financial accounts worldwide. All countries and regions that sign CRS should implement this unified standard in their financial institutions and with other signatory countries and regions. The District exchanges information about the financial accounts of its counterparts.
 
Firstly, through due diligence procedure, financial institutions in Country A (region) identify the accounts opened by tax residents and enterprises in Country B (region), and submit information such as account holder name, taxpayer identification number, address, account number, balance, interest, dividend and income from the sale of financial assets to the competent authorities in Country A (region).
 
Subsequently, the tax authorities of Country A (region) exchange information with the tax authorities of Country B (region) where the account holder resides, and ultimately provide information support for countries (regions) to supervise cross-border tax sources.
 
CRS is the Terminator of Tax Avoidance Paradise for the Rich
 
CRS put it bluntly, in fact, this is the case:
_Foreign tax residents'account information in China will be handed over to their tax authorities.
The information of Chinese tax residents'accounts abroad will also be handed over to Chinese tax authorities.
 
CRS landed, China started global taxation! American real estate is on fire again...
 
This means that the State Administration of Taxation will have a clear understanding of the opening of bank accounts by Chinese residents in hundreds of countries and regions. This action is carried out around a common agreement called CRS in more than 100 countries and regions around the world.
 
China will be able to easily access the financial account information collected by the other party for specific Chinese people.
 
Current CRS signatories
 
CRS landed, China started global taxation! American real estate is on fire again...
 
More than 100 countries around the world have pledged to implement the first exchange of financial account information under CRS by September 2018. At present, China has acceded to the Multilateral Convention on Tax Collection and Management (MCAA) and achieved matching. According to OECD data, China has been "paired" successfully with more than 60 countries and regions under MCAA, and the automatic exchange of information has been formally "activated". In more than 60 countries, there are many "tax havens" such as the British Virgin Islands, Cayman and Bermuda.
 
Information exchange involved
 
Overseas Institutional Accounts: Deposit Institutions, Trusteeship Institutions, Investment Institutions, Specific Insurance Companies and other financial institutions.
 
Asset Information: Deposit Account, Custody Account, Cash Value Insurance Contract, Annuity Contract, Equity/Bond Income of Holding Financial Institutions.
 
Account Content: Account and Account Balance, Name and Date of Birth, Tax Residence, Annual Payment to or Included in the Total Account