What is a tax resident?
refers to an individual or enterprise that has tax obligations in a certain country. Generally speaking, an enterprise will have tax resident status in a country because its registered place is in a country; while an individual will have tax resident status because of its connection with the country (such as usually living in the country, living for a certain period of time, employment in the country, etc.). Different countries generally have different regulations in this regard. Generally speaking, most countries in the world have clear regulations on who needs to pay taxes. Generally speaking, as long as you live in this country for a total of 183 days a year, you are a resident in the tax sense, whether at home or abroad. In other words, if an international student has not applied for immigration and lives abroad (such as the United States) for a total of 183 days, then your income needs to be filed.
How to confirm CRS swap object?
TIN and tax resident information
Jurisdiction has provided information about its tax identification number TIN and tax residence rules to help taxpayers and financial institutions fulfill their CRS obligations. China's tax identification number is our ID number.
automatically exchanges tax-related information for financial accounts according to the "standard". First, a financial institution in one country (region) will identify the accounts opened by individuals and enterprises of another country (region) through due diligence procedures, and submits information such as the name of the account holder, taxpayer identification number , address, account number, balance, interest, dividends, and income from the sale of financial assets to the competent department of the country (region) where the financial institution is located on an annual basis. Then, the tax authorities in that country (region) exchange information with the tax authorities of the resident country of the account holder, and ultimately provide information support for cross-border tax source supervision in various countries (regions). What content is exchanged for
CRS?
Financial institutions shall summarize and submit the following non-resident account information of the domestic branch, and indicate the name, address and taxpayer identification number of the financial institution that is reported:
(I) The name of the personal account holder, current residence address, tax resident country (region), tax resident country (region), place of birth, date of birth; the name, address, tax resident country (region), tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region) tax resident country (region)
(II) account or similar information.
(III) The balance or net value of a single non-resident account at the end of the calendar year (including the cash value or surrender value of an insurance contract or annuity contract with cash value). If the account is cancelled within this year, the balance will be zero, and the account must be indicated that it has been cancelled.
(IV) Deposit account, submit the total amount of interest received or included in the account within the year by the company.
(V) The escrow account shall report the total amount of interest, dividends and other income received or included in the account in the calendar year or included in the account. If the financial institution that reports the information is an agent, intermediary or nominal holder, it shall submit the total income received or included in the custodial account due to the sale or redemption of financial assets.
(VI) Other accounts shall submit the total income received or included in the account by the company within the year, including the total amount of redemption funds.
(VII) Other information required by the State Administration of Taxation. Who is
CRS related to?
If you are a Chinese resident, it doesn’t matter.
If you have or intend to immigrate abroad, then all financial products, assets, including stocks and securities that you are abroad are within the scope of information exchange.(It should be reminded here that in the first 6 months, you must be a Chinese tax resident)
How to avoid CRS exchange? What categories of financial information will not be exchanged?
avoiding CRS is divided into four steps:
first step, countries that have not established diplomatic relations;
second step, countries that have not participated in the CRS exchange system;
third step, whether this country opens CBI projects;
meets the above three items, only one country, St. Kitts and Nevis. Coincidentally, it is the founder of the CBI world, and has been running since 1984. The scope of financial products regulated by
CRS does not include in real estate. This is also the real internal reason behind the popularity of Turkey's project after the price reduction. It can be said that while achieving global asset allocation, the whole family can get a passport for free, and the cost-effectiveness is indeed very high.
Can global asset allocation avoid taxes?
has clearly stated that purchasing real estate is one of the few investment category that is not in the exchange category, which means that global asset allocation can be achieved through buying a house while avoiding information exchange. So can tax avoidance be achieved by buying a house? The answer is no.
There is no need to exchange tax filing and tax payment information for buying a house itself, but because many countries need to pay a certain amount of tax to buy a house itself, some countries also need to pay a certain amount of tax. Of course, the benefits are also obvious, the property rights are 100%, which is undoubtedly true, and the tax rates of different countries are obvious, so to be precise, global asset allocation cannot completely avoid taxes, but a large part of the tax can be paid less. This is also unquestionable.
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