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!
#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.
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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.
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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.