Overseas bank account opening and offshore tax number, how to avoid the exchange of CRS and financial account information when holding a second country passport to open an account abroad
After the outbreak of Wuhan pneumonia (new crown pneumonia, international scientific name Coronavirus) in Wuhan this year, more and more people are concerned about the news of offshore asset allocation,How to transfer domestic assets to overseas bank account after realizing, More people think of the CRS and the automatic exchange of financial account information regulations, in the end what is safe? Banks use ID cards and passports to judge? Where is the address? What is Tax Indentification Number again?
Foreword
Previous article I posted:Practical use of two countries passports to protect overseas assetsFor the first timeDominica passportThe principle of legal tax avoidance is open, and many people want to implement it themselves after they have it, but most people still think that buying a copyDominica's Citizenship by Investment Program, orSt kitts, Or Vanuatu passport (orThe citizenship citizenship project that is still open for investment,such asMontenegro, Moldova, Cyprus, Antigua, Grenada, Turkey, Saint Lucia, Malta passports,Read the relevant comparison here), go directly with the passport of the second countryset up an accountNo problem, I later wrote a more advanced article:Are you doing correctly to relocate assets to overseas?I found that everyone does not understand what the tax number is? What is the problem with opening a passport directly?
Services after naturalization in Dominica
Dominica’s offshore citizenship can beVisa-free travel to nearly 150 countries, You can also apply for an international driver’s license,Full citizenshipYou can also apply for a Dominica tax identification number, a driver’s license, valid for one or three years, a Dominica international driver’s license, criminal (good conduct) record, criminal notarization,Please refer to this linkthe brochure freely.
What problems will you encounter when opening an account with only the passport of the second country
- Only a passport cannot prove that you are a tax resident of the country
- You have not provided the legal address of the country
- You did not provide the country's tax ID
- The bank will investigate your source of funds
- Even if the account opening is successful (probably because you provided your domestic address and ID card), this means that the bank account information will be automatically exchanged back to China
OECD Economic Cooperation and Development Organization
OECD (Economic Cooperation and Development Organization)Published two guidelines to financial institutions around the world,(1) How to determine Chinese tax payment obligations, or(2) How to find out the Chinese tax identification number
Tax Identification Number, TIN
Tax Resident Obligations
Pay taxes, pay taxes, pay taxes, but once you fall into the status of a Chinese tax resident, you become the target of global taxation in China, which means that your bank account is useless even if you use other nationalities to open an account.People who transfer assets overseas, You expose yourself to three risks:
- You are telling the government that you have dual citizenship
- Can you submit a record of the legal exit of funds
- Do you have confidence to prove that the funds have been paid, and legally obtained
Chinese tax resident
Individuals who have a domicile in China or do not have a domicile and have lived in China for 183 days within a tax year are tax resident individuals. Income earned in China and abroad is subject to personal income tax in accordance with regulations.
For Chinese tax residents with financial accounts in OECD member countries, account information will be automatically exchanged back to the China Taxation Bureau.The Chinese tax ID is the number on the ID card.
Hong Kong tax resident
Individuals who often live in Hong Kong, or have lived in Hong Kong for 180 days in one tax year, or have lived in Hong Kong for 300 days in two consecutive tax years, are tax resident individuals. Hong Kong residents are required to pay tax on their income from within the territory.
Hong Kong tax residents with financial accounts in OECD member countries, account information will be automatically exchanged back to the Hong Kong Taxation Bureau.The tax number of a Hong Kong resident is the number on the Hong Kong identity card.
Taiwan tax resident
Citizens who hold Taiwanese household registration are registered at least once a year, or individuals who have lived for 183 days in a tax year are tax resident individuals, and income obtained in and outside Taiwan is subject to personal income tax in accordance with regulations.
Taiwan is not a member of the CRS and currently only signs financial account automatic exchange agreements with Japan.
Japanese tax resident
Individuals who have domicile in Japan or who have lived for more than one year are tax resident individuals. Income earned in and outside Japan is subject to personal income tax in accordance with regulations.
For Japanese tax residents who have financial accounts in OECD member countries, account information will be automatically exchanged back to the Japanese Taxation Office.The Japanese tax number is a 12-digit number.
Dual nationality
Tax obligation
Globally taxed countries impose taxes on their citizens and tax residents on income earned anywhere in the world. In the case of tax numbers with two nationalities at the same time, even if you are a citizen of dual nationality living abroad, you may owe taxes to two countries at the same time, but if the income tax treaties are signed between the two countries, these treaties are reduced Or eliminated the tax liability of one of the places. For example, the treaty between the United States and New Zealand takes precedence over the income tax laws of each country to avoid double taxation. Even so, according to the CRS agreement, your bank account may be transparent. In these two countries, citizens of dual nationality may also need to submit tax returns. Because the tax laws are complex and change every year, you may accidentally fall into tax evasion. Bring a fine of not small amount.
The world is strictly implementing tax residents
Tax payment is a duty that citizens should perform due diligence. China officially became a global tax country on January 1, 2019. In the documents published by CRS, the tax number of Chinese citizens is different from other Western countries. Financial institutions can Directly register the ID number as a tax number to complete the matching of automatic account information exchange. In 2020, the world will be full of industrial shocks and temporary economic recession caused by the epidemic (Coronavirus, new pneumonia, or Wuhan pneumonia). China and the United States are trading The long-term negotiations still damaged the economies of the two countries. It is not difficult to predict that the government will need greater financial revenue to stabilize the country's development. After the epidemic has stabilized, it will strengthen offshoreBank accountSurvey may be the next important task.
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