With the ongoing trend of global asset allocation, an increasing number of individuals from the domestic middle class and above are joining the ranks of overseas immigration investors for reasons such as overseas asset allocation and children's education. However, with the tightening of domestic foreign exchange controls and China's accession to the CRS, these new policies will officially take effect on July 1, potentially narrowing the channels for overseas investment for domestic individuals.
1. From July 1, new policies on currency exchange, foreign currency cash withdrawal, and overseas remittances will officially take effect.
At the end of 2016, the central bank issued the strictest foreign exchange control policies in history. Starting from July 1 of this year, China will implement the "Management Measures for Reporting Large Transactions and Suspicious Transactions by Financial Institutions," which not only strengthens the control of overseas remittances but also adjusts the reporting standards for large cash transactions of foreign currency purchases and withdrawals by the public on a daily basis.
Previously, each person had a foreign exchange purchase limit of $50,000 per year and a daily cash withdrawal limit of $10,000. After the implementation of this policy, individuals can only exchange an equivalent of 50,000 RMB for US dollars and other foreign currencies daily, which is approximately $7,100 at the current exchange rate. Exceeding this limit requires reporting, and cross-border remittances of $10,000 or equivalent foreign currency must also be reported. If you frequently exchange currency and are classified as a reasonable suspect, there is a risk of being questioned or denied.
2. From July 1, due diligence for global financial asset information exchange will commence.
On the other hand, with the commencement of the CRS in China in 2017, a series of related tasks are being carried out in an orderly manner. In mid-last month, the State Administration of Taxation and five other ministries jointly issued the "Management Measures for Due Diligence on Tax-Related Information of Non-Resident Financial Accounts," which stipulates that starting from July 1, financial institutions will conduct due diligence on deposit accounts, custodial accounts, equity or debt rights of investment institutions, and insurance contracts or annuity contracts with cash value. Regardless of the amount, these accounts must identify whether the account holders are non-residents through due diligence. Once identified as non-residents, their financial assets in China will be exchanged to the other country based on the CRS platform. The Chinese government will implement global taxation on its tax residents through international cooperation platforms. As CRS-related policies are gradually implemented in various countries, a new era of international tax transparency for personal wealth is about to arrive.
3. From September 1, all overseas cash withdrawals and single transactions exceeding 1,000 RMB using domestic bank cards will need to be reported.
At the beginning of this month, the State Administration of Foreign Exchange released a notice regarding the reporting of overseas transaction information by financial institutions for domestic bank cards. Starting from September 1, 2017, domestic issuing financial institutions must report all cash withdrawals and single transactions equivalent to 1,000 RMB or more that occur overseas using domestic bank cards to the State Administration of Foreign Exchange. In other words, as long as you withdraw cash or make a single transaction exceeding 1,000 RMB abroad using a domestic card, it needs to be reported.
This series of upcoming new policies sends a clear signal: with the tightening of foreign exchange controls and the implementation of CRS-related work, after July 1, it may become increasingly difficult to bypass foreign exchange controls for overseas transactions. This will undoubtedly deliver a significant shock to investment immigration.
Experts from WorldWay Immigration indicate that a Dominica passport is a reasonable solution to cope with foreign exchange controls and CRS, as Dominica is one of the few non-global taxation countries and exempts capital gains tax, gift tax, and inheritance tax. By holding a Dominica passport, one can open overseas financial accounts under the identity of a Dominica citizen, placing overseas assets and wealth information under the name of a Dominica citizen for overseas asset allocation. The Dominica government implements a confidentiality policy regarding its citizens' information, thus allowing for a reasonable response to the impacts of foreign exchange controls and the transparency of overseas asset information brought by CRS.
Currently, there is still some time before the above new policies take effect. For those who need to apply for Dominica immigration, it is essential to seize the opportunity and complete the investment before the new policies are fully implemented. Invest early for peace of mind!
WorldWay Immigration Group, as one of the earliest immigration companies promoting the Dominica investment citizenship program, has maintained a good relationship with the Dominica government for many years. The Prime Minister of Dominica, Hon. Roosevelt Skerrit, has visited WorldWay Immigration four times and has provided exclusive privileges for VIP clients, such as simplified application materials and expedited approval processes. With the significant benefits brought by the Prime Minister's green light, it is believed that in the future, investors applying for investment citizenship in Dominica through WorldWay Immigration will find the process even simpler, more convenient, and faster.
WorldWay Immigration is launching the "Third American Immigration Month" major promotional event, which is currently in full swing. Anyone who signs a contract with WorldWay Immigration Group for mainstream investment immigration projects on any day in June can enjoy significant discounts! Additionally, there will be numerous themed activities such as overseas investment seminars, interactive salons, immigration policy analysis meetings, and client appreciation events waiting for you. There are many activities and many discounts, so please pay attention and participate!
[Event Announcement] The "2017 Overseas Investment Summit Forum" is coming this weekend!
The forum will gather numerous top experts from various industries, influential figures from multiple countries, renowned wealth management experts, heads of investment agencies from EU countries, commercial attachés, and executives from multinational banks. They will provide unique professional insights to help investors understand overseas investment opportunities, analyze overseas investment pathways and trends, and share successful investment strategies and experiences, assisting investors in seizing overseas investment opportunities.
Due to limited seating at the forum, please enter by reservation. To make a reservation, please call the exclusive free reservation hotline: 400-138-2929.