On September 1, 2018, China officially entered the Common Reporting Standard (CRS) system, which will facilitate the exchange of CRS information with over 100 countries or regions worldwide. The implementation of CRS means that the personal assets and tax status of high-net-worth individuals will be exposed, making property more transparent and requiring strict legal compliance.
Experts state that under the influence of CRS, as offshore financial instruments are also reported as information, it will become very difficult to use offshore finance to hide assets, evade taxes, or underreport income. Furthermore, for "wealthy" individuals with high-net-worth assets, if information is not disclosed correctly or at all, not only will their assets be frozen, but they will also face fines and litigation from tax authorities, and those involved in fraud, forgery, or tax evasion will face severe criminal liability.
According to media reports, among the nearly 2,000 bilateral exchange relationships in the first batch of 50 countries (regions) that exchanged information in July 2017, the offshore assets of 500,000 natural persons were disclosed, resulting in approximately 85 billion euros in additional taxes collected.
Over a month ago, international media outlets continuously released major news stating that major commercial banks in New Zealand and Australia had frozen thousands of accounts and required confirmation of whether the account holders were foreign taxpayers, a scope that continues to expand.
However, amidst the intensive efforts of various countries and regions to implement CRS policies, people were surprised to find that the world's leading financial power, the United States, is not part of the CRS system!
In fact, several years before the implementation of CRS, a group of sensitive financial leaders already understood this and actively began to reallocate their international assets toward the United States. This trend can perhaps be glimpsed from a single figure—during the reporting cycle from April 2016 to March 2017, the total volume of real estate purchases by Chinese nationals in the U.S. reached $31.7 billion, an increase of 16% over the previous year's $27.1 billion, and also exceeding the previous peak of $28.6 billion, setting a new historical high. In addition to the monetary value, the number of properties purchased also exceeded 40,000, reaching a new historical high after a decline the previous year.
Of course, for many more Chinese citizens, the actual threat of CRS only became clear after its implementation on September 1. Therefore, from now into the foreseeable future, the movement of Chinese private assets across the ocean may become the primary focus of overseas asset allocation for Chinese nationals.
It is not hard to imagine that the United States, which is not in the CRS system, will become one of the world's largest tax planning havens and one of the preferred destinations for asset allocation by Chinese nationals.
Driven by this, the already booming U.S. immigration market will be pushed to new heights. Because holding only a visa for asset allocation is ultimately not reassuring, immigrating to the U.S. and becoming a U.S. citizen is the only way to better conduct asset allocation. Therefore, immigrating to the U.S. has taken on an additional special meaning: the freedom to allocate personal assets without being subject to the CRS agreement to disclose them to Chinese tax authorities.
Of course, among the many ways to immigrate to the U.S., the U.S. EB-5 investment immigration program is one of the most effective ways to obtain a U.S. Green Card. The application requirements are flexible, the investment threshold is low, and there are no restrictions on age, education, language, business background, or work experience. An investment of $500,000 allows an entire family to immigrate to the U.S. and enjoy numerous benefits.
Investors can choose high-quality projects that have been approved by the immigration authorities, have the potential to shorten waiting periods, have completed all job creation requirements, and offer first-priority repayment guarantees, which will greatly protect the interests of investors and help them successfully immigrate to the U.S.
Currently, the highly popular Worldway EB-5 projects in the market—the Manhattan 9 Luxury Boutique Hotel and Dallas 1—are both rare, high-quality projects. We urge investors to seize the golden historical period to immigrate to the U.S. for $500,000 before September 30 and submit their applications as soon as possible. For more details, please call: 400-138-2929.