Recently, there have been constant news reports about major actions in CRS implementation. Many high-net-worth individuals have consulted with Worldway immigration consultants, claiming they have received numerous CRS investigation letters from banks, while others have received phone calls, emails, and express deliveries requesting them to fill out self-certifications of their personal tax residency status regarding CRS. The CRS has truly arrived, which has caused strong panic among high-net-worth individuals! Do you know what significant impact this has on overseas asset allocation?
The Three Movements of CRS
2016, The Wolf of CRS is Coming
In 2016, 101 countries and regions, including China, joined the CRS. This caused a great stir, and the saying that the assets of high-net-worth individuals might be "exposed" became increasingly prevalent. Tax planning became a consideration for immigration, and some visionary investors chose to immigrate and conduct identity planning.
2017, The Wolf of CRS Has Truly Arrived
On July 1, 2017, financial institutions within China began to perform due diligence procedures in accordance with CRS standards. The Chinese version of CRS was implemented, which also meant that the CRS, which had made Chinese high-net-worth individuals tremble with fear, had truly arrived. This prompted some investors to choose immigration with tax considerations; however, some investors still held a wait-and-see attitude, hoping for luck.
2018, The Wolf of CRS Has Bitten
In early January 2018, the Dongguan Local Taxation Bureau recovered 36.08 million yuan in individual income tax from 108 overseas personnel; major commercial banks in New Zealand froze thousands of accounts and required confirmation of whether the account holders were foreign taxpayers; starting from September 1, China implemented the exchange of CRS tax-related financial information for the first time... The "wolf" of CRS has bitten!
Multiple Jurisdictions Worldwide Committed to CRS
Worldway learned from the official OECD website that as of August 2018, more than 3,200 bilateral exchange relationships had been activated, and more than 90 jurisdictions were committed to CRS. The next exchange between these jurisdictions began in September of this year.
In 2017, 49 tax jurisdictions conducted their first exchange of tax information; in 2018, 53 tax jurisdictions conducted their first exchange of tax information; in 2019/2020, 4 tax jurisdictions conducted their first exchange of tax information; 43 developing countries have not yet determined the time for their first exchange of tax information.
In just a few years, under the strong promotion of the OECD, from the generation of the CRS concept to the formulation of implementation standards, to the joining of 146 countries (regions), and then to the release of the implementation schedule, the speed of progress and the strength of execution are surprising! With the implementation of CRS global taxation, it is urgent for high-net-worth individuals to conduct reasonable tax planning for their global asset allocation!
Asset Allocation, Identity First
Under the influence of CRS implementation, wealth is like being exposed! Since offshore financial instruments are also declared as information, more and more high-net-worth individuals realize the importance of planning overseas asset allocation in advance, and the concept of "Identity First" is becoming more and more deeply rooted in people's hearts! Obtaining an identity through investment immigration is not limited to enjoying high-quality education, medical care, and other benefits, but has become an important way for asset preservation and appreciation.
Experts suggest that obtaining a third-country passport from a tax haven and using this passport identity to open corporate and personal accounts may allow you to enjoy preferential tax systems, and may also reduce or exempt personal income tax, inheritance tax, overseas income tax, etc., which would be a good choice!
There are many mature passport projects on the market today. How to choose the best one?
As one of the top 500 Asian immigration brands, Worldway Group focuses on overseas investment and has pioneered many industry leaders. With the philosophy of "Integrity-based, Customer-first," we carefully select projects and provide professional services to our clients, with successful cases all over the world! With 21 years of rich practical experience, we have selected high-quality Commonwealth country passport projects for investors—Saint Kitts and Nevis, Saint Lucia, Dominica, Antigua and Barbuda, and Vanuatu passport projects, saving you the trouble of choosing!
Worldway, one of the pioneers of Commonwealth passport projects! As one of the first immigration agencies to introduce Commonwealth passport projects to China, Worldway was the global general agent for the investment passport project of the Republic of Kiribati in the early part of this century, and a global first-level agent for the investment citizenship project of the Republic of Nauru. At the same time, Worldway was also one of the first immigration agencies to introduce the Saint Kitts and Nevis Citizenship by Investment Program to China.
Worldway maintains good relationships with many Commonwealth country governments and is your guarantee of confidence in processing Commonwealth passports!
CRS is coming, to hide or to be exposed, how will you choose?
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