Your Residence Permit in China Affected by This Form?!
#Today, we collected some common questions to answer below.
You may have received this message, an notification about bank asking the account holders to go to banks to report which countries’ taxpayers they belong to before 31 December, which is for information exchange among countries from CRS.
Go to any sub-branches with your passport and fill the form.
The first option, PRC Tax Resident, refers to individuals who domicile in the PRC, and travel outside of China for a single trip less than 30 days or combined trips less than 90 days during the resident of China in 2018. In addition, individuals are not asked for the tax information in other countries (normally refer to their own countries) are regarded as PRC Tax Resident.
The second option, PRC Non-tax Resident, refers to individuals who do not domicile in PRC, and travel outside of China for a single trip over 30 days or combined trips over 90 days during the resident of China in 2018.
The third option, Tax Resident in PRC as well as other countries, refers to individuals who meet the conditions of first option and are also paying tax in other countries or these countries require to pay tax.
Please choose it based on your actual situation.
This message states that if you don’t fill the form on time, the bank will consider you as Non-tax Resident automatically. We still suggest you that you should fill the form and submit to the bank in time, otherwise the bank may close the account or recognize your information mistakenly, which may lead to adverse credit record due to tax deferral.
Visa related departments haven’t required for information about personal tax yet. There is no influence for now, but we are not sure in the future.
Generally, PRC Tax Resident has to declare tax to tax bureau every year. But many taxpayers failed to do so in the past. In terms of when China tax bureaus will inspect, close personal accounts compulsively and ask for tax payment, we can’t give an exact answer or forecast how policy will work in the future.
You will need to pay the tax in China and meanwhile, China will exchange your assert information to another country you filled. Whether there is double taxation by another country or not, it depends on if there is tax convention between two countries or not.
First you need to state the source and expenditure of each income. After calculating the total personal income amount, using the calculation method of personal tax rate.
Travelling outside of China for a single trip less than 30 days or combined trips less than 90 days during the resident, or living in China no less than 183 days?
According to present tax laws and the bank asks for declaration of 2018, it is the situation of travelling outside of China for a single trip less than 30 days or combined trips less than 90 days during the resident.
However, new personal tax laws will be put into effect in 2019, and in this condition, PRC Tax Resident will be regarded as those who live in China no less than 183 days. Therefore, from January 1, 2019, the standard time of resident will be 183 days.
We are afraid not because you need to confirm the information and sign there. You can manage it in bank which you opened bank account before as well as any other sub-branches.