Notice! Have You Received This Message from Bank Recently?

Many of our friends have received a message from banks as below these days, worryingly, they asked HACOS, ‘what is this all about’? Well, let’s figure it out!

Notice! Have You Received This Message from Bank Recently?

 

#1 What is a Tax Resident in China?

The definition for this term may vary from country to country, but mostly, an individual can qualify to be treated as a Tax Resident either under a qualitative or quantitative standard. China is not an exception.

A PRC Tax Resident refers to individuals who have domicile in the PRC, or who have resided for one year(365days) or more in the PRC, whereas, an individual can be deemed to be Non-Tax Resident in China if he/she travels outside of China for a single trip over 30days, or combined trips over 90days in a tax year.

Notice! Have You Received This Message from Bank Recently?

© Image | BAIDU

 

According to the Regulation on the Implementation of the Individual Income Tax Law of the People’s Republic of China and the Levy of Individual Income Tax, A Tax Resident in China shall pay individual income tax on all their income, no matter their income derived within the territory of China or outside China.

 

 

#2 Why there is such a message?

 

Well, China has entered the (CRS) Common Reporting Standard, a system was intended to transfer all relevant information automatically and systematically, this message is intended to inform all the accounts holders report their tax information spontaneously to the banks.

 

 

#3 How do we deal with it?

 

Easy! If you are a Tax Resident in China(30 days, 90days rule), Report the individual income no matter derived within or outside China to China Tax Government. If you are a Non-Tax Resident, forget it, well, it is according to the law.

 

 

#4 Are you a Tax Resident?

 

Ell, many of you may have this question, what if I tell the truth that I am a Tax Resident in China, what time and how would China Tax Bureau levy the tax from me. 

 

Notice! Have You Received This Message from Bank Recently?

© Image | BAIDU

 

To be honest, it is an obligation to pay tax voluntarily everywhere in this world, it is a matter of time to get all things to the right direction. So, let’s get started before it’s too late.