Since January 1st of this year, the CRS has entered its "operational phase." The 101 countries and regions that have committed to implementing the CRS, including China, are required to exchange information on non-resident financial accounts. This means that in the future, the account information of Chinese tax residents in the 100 CRS tax jurisdictions will be clearly accessible to tax authorities, and the account information of foreign tax residents in China will also be accessible to Chinese tax authorities. In short, it will become increasingly difficult for high-net-worth individuals to keep their overseas assets hidden.
Starting from July 1st, financial institutions within China will conduct due diligence on the tax-related information of non-resident financial accounts and report it to the State Taxation Administration. How to better conduct asset planning in the context of the CRS has become an urgent issue for high-net-worth individuals. So, what is the CRS? What information is included in CRS account investigations? Who will be affected by the CRS?
On the morning of July 7th at 10:30, Sina Leju's "New Overseas" live broadcast invited Ellen Luo, Business Director of Worldway Immigration Group's Beijing office, to host a program titled "The CRS is Coming: How to Reasonably Conduct Global Tax Planning and Asset Allocation." She provided professional advice to investors on overseas investment and the preservation and appreciation of assets, which was warmly welcomed by netizens and investors alike.
Ellen Luo, Business Director of Worldway Immigration Group's Beijing office, stated that obtaining a passport from another country that facilitates global travel and tax planning is the only way to reasonably mitigate the issues brought about by the CRS.
There are many mature passport programs on the market today; how does one choose the best one? At this point, the advantages of a versatile Commonwealth passport—such as those from Dominica, Saint Lucia, Antigua and Barbuda, Saint Kitts and Nevis, or Vanuatu—become particularly prominent.
Commonwealth countries like Dominica and Saint Lucia have well-developed offshore finance sectors and superior tax systems. This not only helps investors save on tax costs and is suitable for global tax planning, but also facilitates global asset allocation, helping investors achieve the preservation and appreciation of their assets.
Taking the Dominica passport as an example: by investing in Dominica and opening an offshore account as a citizen of Dominica to conduct global asset allocation, one can comprehensively and reasonably avoid the impact of the CRS. This is because Dominica is a world-class tax haven that does not levy capital gains tax, property tax, inheritance tax, or gift tax on its citizens. It is also one of the rare countries that does not practice global taxation, implementing a "0" tax policy on overseas income. Opening an offshore account as a citizen of Dominica and transferring overseas assets to that account can reasonably mitigate the impact of the CRS, save on global investment tax costs, and ensure the preservation and inheritance of your global wealth, while also providing better protection against the leakage of overseas asset and wealth information. For more immigration information, please consult the Worldway Immigration Group hotline: 400-138-2929.