Overseas bank account opening and offshore tax number, holding a second passport to open a bank account abroad to avoid CRS and financial account information exchange
The news of offshore asset allocation has received increasing attention this year in the wake of the outbreak of pneumonia (New Crown Pneumonia, international scientific name Coronavirus) in Wuhan.How to liquidate domestic assets and transfer them to an overseas bank account, more people associate the CRS with the automatic exchange of financial account information, how exactly is it safe to do? Do banks use IDs and passports to determine this? What about residential address? What is Tax Indentification Number (TIN)?
preamble
The article I posted earlier:Hands-on Protection of Overseas Assets with a Two-Country PassportFor the first time, theDominica PassportWith the principle of legal tax avoidance open to the public, many people want to do their own work, but most people still think that buying a bookDominican RepublicSt. Kitts or Vanuatu Passport (orCitizenship by Investment Program still opensuch as Montenegro, Moldova, Cyprus, Antigua, Grenada, Turkey, St. Lucia, Malta passports.Read related comparisons here) with a second passport to go directly toBank account openingThere would be nothing wrong with it, and I've since written a more advanced article about it:Moving assets overseas, are you doing it right? How to plan?I find that people don't understand exactly what a tax ID number is. What exactly would be the problem with taking your passport directly to the account?
Services after naturalization in Dominica
Dominica's offshore citizenship can, in addition to theVisa-free travel to nearly 150 countriesand can also apply for an international driver's license.Full citizenshipAlso able to apply for a Dominica Tax Identification Number, Driver's License valid for one or three years, Dominica International Driver's License, Criminal (Good Conduct) Record, Notary Certificate of No Criminal Conviction.Please refer to this linkThe
What are the problems of opening an account with only a second passport?
- A passport alone does not prove that you are a tax resident of that country.
- You have not provided a legal address in this country.
- You didn't provide the country's tax ID number.
- The bank will investigate the source of your funds
- Even if the account is successfully opened (probably because you provided your address and ID card in your home country), the bank account information will be automatically exchanged back to your home country.
OECD Organization for Economic Cooperation and Development
OECD (Organization for Economic Cooperation and Development)Two guides have been made publicly available to financial institutions worldwide.(1) How to determine the tax payment obligations of Chinese people,(2) How to find out the tax identification number of Chinese people
Tax Identification Number, TIN
Obligations of tax residents
Pay tax, pay tax, pay tax, once you fall into the Chinese tax resident status, you become the target of China's global taxation, meaning that your bank account even if you use other nationalities to open an account is useless, for those who want toPeople who move their assets offshore, you expose yourself to three risks:
- You're telling the government you're a dual citizen.
- Can you submit a record of the funds leaving the country legally?
- Are you confident that you can prove that the funds are all taxed and legally obtained
Chinese tax resident
Individuals who have a domicile in China, or who do not have a domicile but have lived in China for 183 days in a tax year, are tax resident individuals. Individuals shall be subject to individual income tax on income derived both within and outside China in accordance with the regulations.
Chinese tax residents with financial accounts in OECD member countries will have their account information automatically exchanged back to the Chinese tax authorities.A Chinese person's tax ID number is the number on their ID card.
Hong Kong Tax Resident
Individuals who are ordinarily resident in Hong Kong, or who have resided in Hong Kong for at least 180 days in a taxable year, or for at least 300 days in two consecutive taxable years, are tax resident individuals. Hong Kong residents are required to pay tax on income derived from within Hong Kong.
For Hong Kong tax residents with financial accounts in OECD member countries, the account information will be automatically exchanged back to the Hong Kong Inland Revenue Department.The tax code for Hong Kong residents is the number on the Hong Kong Identity Card.
Taiwan Tax Resident
Nationals who hold Taiwan household registration and land at least once a year or reside in Taiwan for 183 days in a tax year are tax resident individuals, and they shall pay individual income tax on income derived from sources within and outside Taiwan in accordance with the regulations.
Taiwan is not a member of the CRS and currently only has an automatic exchange of financial accounts agreement with Japan.
Japanese Tax Resident
Individuals who have a domicile in Japan, or who have lived in Japan for one year or more, and who are tax residents, are subject to individual income tax on income earned both in and outside of Japan in accordance with the regulations.
For Japanese tax residents who have financial accounts in OECD member countries, account information is automatically exchanged back to the Japan Tax Agency.A Japanese tax code is a 12-digit number.
dual nationality
taxable obligation
Countries with global taxation tax their citizens as well as tax residents on income earned anywhere in the world. In the case of having both citizenship tax codes, even if you are a dual citizen living abroad, you may owe taxes to both countries at the same time, but if there are income tax treaties between the two countries/territories, these treaties reduce or eliminate the tax liability of one of them. For example, the treaty between the U.S. and New Zealand takes precedence over each country's income tax laws to avoid double taxation. Even so, agreements under the CRS may make your bank account transparent in both countries, and dual citizens may be required to file tax returns, and since tax laws are complex and change from year to year, accidentally falling into tax evasion could bring a significant amount of penalties.
Tax residents are being strictly enforced worldwide
Paying taxes is a duty that citizens should do their duty, China officially became a global tax country on January 1, 2019, in the CRS public documents, Chinese citizens' tax ID numbers and other Western countries are completed with a different system, financial institutions can directly register the ID number as a tax ID number, to complete the automatic account information exchange match, 2020 in the year the world is flooded with epidemics (Coronavirus The global epidemic (Coronavirus, a new type of pneumonia, or Wuhan Pneumonia) brought about by the industrial shock, a temporary economic recession, the U.S. and China in the trade war in the long term negotiation or compromise the economy of the two countries, it is not difficult to foresee that the government will need a larger revenue to smooth the development of the country, in the epidemic stabilized to strengthen the offshorebank accountThe investigation may be the next important task.
It's expensive to have an identity, and it's even more expensive to be missing your tax ID number.
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