In September, major news that alarmed the high-income class was released: starting this month, China has begun exchanging CRS (Common Reporting Standard for offshore financial accounts) information with other countries for the first time. Tax authorities will now have access to information on individual offshore income. Once identified as a high-risk taxpayer, individuals may face scrutiny over the source of large funds, as well as the requirement to pay significant back taxes and interest.
Information from the official website of the State Taxation Administration shows that starting this month (September 2018), the State Taxation Administration will conduct its first information exchange with the tax authorities of multiple countries (regions).
Public data shows that as early as September 2017, Bermuda, the British Virgin Islands, the Cayman Islands, Luxembourg, and others had already conducted their first information exchange. As of August 7, 2018, 103 countries (regions) had signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information.
In China, according to the plan, Mainland China, Hong Kong, and Macau all completed their first information exchange with other CRS participating countries this September, along with Singapore, the Bahamas, Bahrain, and others, totaling 47 countries and regions.
This means that Chinese tax authorities can easily understand and grasp information regarding the offshore asset income of Chinese tax residents through this method!
It is worth mentioning that the recently highly-anticipated amended Individual Income Tax Law has been passed and will be implemented on January 1 of next year. The anti-tax avoidance provisions introduced for the first time also signify strengthened tax administration for high-net-worth individuals.
According to the published amended Individual Income Tax Law, the newly added anti-tax avoidance provision is Article 8—tax authorities have the right to make tax adjustments using reasonable methods under any of the following circumstances:
1. Business dealings between an individual and their related parties do not comply with the arm's length principle, resulting in a reduction of the tax payable by the individual or their related parties, without justifiable reasons;
2. An enterprise established in a country (region) with a significantly low actual tax burden, controlled by a resident individual or jointly controlled by a resident individual and a resident enterprise, does not distribute or reduces the distribution of profits that should be attributed to the resident individual, without reasonable business needs;
3. An individual implements other arrangements that do not have a reasonable commercial purpose to obtain improper tax benefits. Where tax authorities make tax adjustments in accordance with the preceding paragraph and tax needs to be supplemented, such tax shall be collected, and interest shall be charged in accordance with the law.
So, how should the high-income class respond? Choosing to obtain a passport from a non-global tax country (such as Saint Lucia, Dominica, Antigua and Barbuda, Saint Kitts and Nevis, Vanuatu, etc.) and conducting reasonable tax planning through identity planning is a good option.
WorldWay Group has launched a financing method for citizenship in Saint Kitts and Nevis. By paying the relevant government fees, at a globally competitive price, you can apply for a Saint Kitts and Nevis passport for four generations of your family quickly and enjoy the benefits of Commonwealth citizenship!
Currently, the Saint Kitts and Nevis Central Business District Phase II financing project is hailed as the "most affordable investment citizenship project in a Commonwealth country," and this financing method is also currently the most attractive investment citizenship option for Saint Kitts and Nevis. It is worth mentioning that the quota for the Saint Kitts and Nevis Central Business District Phase II financing project is limited, so act fast! There is no concern about selling or transferring property after 5 years, and the project developer provides a 3-month valid address proof for free!
Advantages of the Saint Kitts and Nevis Passport Project:
1. One of the Commonwealth passport projects with a very low investment amount;
2. Obtain citizenship in one step: one person applies, four generations benefit;
3. Safe: approval first, investment later, low investment risk;
4. Short application time: generally, you can obtain principle approval in about 3-4 months after submitting the application;
5. No immigration prison: no residency time requirements, no need to arrive in the country to report;
6. Preferential tax system: exemption from personal income tax, inheritance tax, gift tax, offshore income tax, etc.;
7. Enjoy Commonwealth country treatment, and in Saint Kitts and Nevis, enjoy free British-style education from primary school to high school, with mutual recognition of credits and academic qualifications among Commonwealth member countries. If you apply as an international student, you can also easily enroll in top domestic universities without a written exam;
8. Visa-free, visa-on-arrival, or e-visa access to over 150 countries and regions: including EU and Schengen countries, the UK, Hong Kong, Taiwan, Singapore, Russia, India, Indonesia, etc. For example, if you apply for a US visa, you can generally be issued a multiple-entry visa valid for 10 years;
9. Vacation paradise: the beautiful environment and breathtaking scenery make it your ideal place to live.
Asset Allocation, Identity First
Passport value remains strong
High cost-performance investment immigration project
Limited quota First come, first served
Handle Saint Kitts and Nevis investment immigration with WorldWay, making your immigration journey easier! For more details, please consult: 400-138-2929
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