What does it mean for the rich in China who have a lot of money overseas? It means:
If you still hold a China passport,
Or foreigners who have lived in China for a long time,
Your overseas financial assets are transparent to China IRS!
China's tax law has always followed the United States and copied it. China's tax law, like the United States, is personal, not territorial. What do you mean? That is, as long as you are a China passport holder or a foreigner living in China, your global income must be taxed in China according to law!
In the past, China was not strong enough to force financial institutions all over the world to declare whether they were American taxpayers like the US government, so it could not catch up with the overseas income of the rich.
However, China especially wants to catch up with the overseas assets and taxes of the rich (and corrupt officials). Therefore, the government is very active in international taxation.
As early as 20 15, 12 and 17, China signed the Multilateral Intergovernmental Agreement on Automatic Exchange of Tax-related Information in Financial Accounts, that is, the Multilateral Agreement on Automatic Information Exchange, which stipulated that financial institutions of all signatory countries, including banks, insurance companies, securities companies and funds, etc. , China citizens and taxpayers need to be submitted to China Taxation Bureau automatically (without notice or customer consent). Anyone who holds China citizenship and is suspected to be a tax resident of China is defined as a group that must automatically apply to State Taxation Administration of The People's Republic of China, China.
AEOI (automatic information exchange) system will be implemented in China from 20 17 1, and automatic exchange of tax-related information of financial accounts under CRS will be realized for the first time in China from 20 18. That is to say, by the end of 20 18, China municipal government will collect the financial account information of China taxpayers in more than 0/00 countries around the world.
Tip:
1. Get a tax paradise passport quickly.
2. Take the time to open a bank account in Hong Kong or other overseas.
3. If there are overseas accounts, try to reduce the amount of each account to below $654.38+$00,000;
4. Diversification of asset positions is realized by using various asset allocations such as trusts, funds, insurance, investment institutions and real estate;
5. Investing in overseas real estate, jewelry, artworks, shareholders, precious metals, company equity, etc. does not belong to the category of financial assets;
6. "Nothing in this world is certain except death and taxes." Benjamin Franklin.
Appendix:
20 17 jurisdiction of the first information exchange (pre-implementation area):
Anguilla, Argentina, Barbados, Belgium, Bermuda, British Virgin Islands, Bulgaria, Cayman Islands, Colombia, Croatia, Cura? ao, Cyprus, Czech Republic, Denmark, Dominica, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Greenland, Guernsey, Hungary, Iceland, India and Ireland. Lithuania, Luxembourg, Malta, Mexico, Montserrat, Netherlands, Niue, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Slovakia, Slovenia, South Africa, Spain, Sweden, Trinidad and Tobago, Turks and Caicos Islands, United Kingdom.
20 18 jurisdiction of the first information exchange (later implementation area):
Albania, Andorra, Antigua and Barbuda, Aruba, Australia, Austria, Bahamas, Belize, Brazil, Brunei, Canada, Chile, Chinese mainland, Cook Islands, Costa Rica, Ghana, Grenada, Hong Kong, Indonesia, Israel, Japan, Kuwait, Macau, Malaysia, Marshall Islands, Mauritius, Monaco, Nauru, New Zealand, Qatar. Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Singapore, Sint Maarten, Switzerland, Turkey, United Arab Emirates, Uruguay and Vanuatu.