Banking in China may be the most frustrating experiences a great deal of expats have. During 2017, lots of banking policies have been carried out, and changes have taken place in our daily life.
HACOS is here to summarize how does the policy concerning MONEY, TAXATION and BANKING differ from the past.
1
0% Import Tariff On These Products
From December!
According to the latest notice from Ministry of Finance, from December 1st, import tariffs on some consumer goods will be average decreased by 7.7%, 9.6% lower than before!
Prices of import goods will drop sharply along with the much lower import tariffs.
Categories
Food, health care products, medicines, daily chemical products, clothes and shoes, domestics appliances, cultural and entertainment products and other commodities, etc. (187 categories in total).
Average tariff is reduced by 7.7%, specifically tariffs of
Cosmetics including lipsticks, eye shadow and perfume are reduced from 10 % to 5%.
Electric razors and electric toothbrushes are reduced from 30% to 10%.
Coffee machines, intelligent lavatory covers are reduced from 32% to 10%.
Mineral water are reduced from 20% to 10%.
Diapers and specific milk powder reduced to 0%!
■ Good News! 0% Import Tariff On These Products From Now On!
2
These USD Bills Are Unavailable
In China Anymore!
Recently, it is told that United States notes issued in 1928 to 1995 are unavailable for payment in mainland China since 16th November this year! That means, you can no longer exchange such version of US dollar for Chinese Renminbi!
And The officer of Bank of China says that the BOC has also received the notification.
■ Attention! These USD Bills Are Unavailable In China Anymore!
3
Why Your Bank Card Canceled
Without Notice?
Since 2017, Chinese government has intensified policy on managing long-term unused bank cards, referring to those issued before December 31st, 2016 and have no transaction records in the first 3 quarters this year.
Banks in mainland China such as CMBC, SPDB gave notice that the policy would be implemented since November. Specifically, banks cards with no deposit or accrued interest will be cancellation.
In other words, personal account information record of original cardholders will be removed from database of online banking, mobile banking, telephone banking and ATM.
■ Attention! Your Bank Card Will Be Canceled Without Notice!
4
Your ID Card Will Be Needed
When Open A Bank Account!
Since the implementation of CRS as well as the strengthening account management, stricter rules for foreigners to open individual accounts have been conducted by banks in mainland China.
According to the inquiry from some banks in Guangzhou, there are new requirements for expats opening Chinese bank accounts. These rules are mainly including:
More Supporting Documents are Needed
Stricter Background Investigation
■ Notice: Your ID Card Will Be Needed When Open A Bank Account!
5
¥1,000 Limitation Overseas
With Chinese Bank Cards?!
According to State Administration of Foreign Exchange (SAFE), since Sep. 1st, all banks in China are required to submit the record of international transactions made with domestic bank cards to SAFE.
Particularly, international transaction records with more than 1,000RMB must be reported to the government in case of illegal money laundering from 22nd in September.
Tips From HACOS
❶ Don't Be Engaged in Illegal Transactions.
❷ Less Transaction With Countries At High Risk.
❸ Do Not Keep Your Account Long-term Idle
■ ¥1,000 Limitation Overseas With Chinese Bank Cards?!
6
Chinese Banks Cancel
These Charges Since August 1!
Since Aug. 1st this year, services charges for withdrawals from ATM/counter between different places (except for withdrawal from credit cards) and other unnecessary charges have been canceled!
The details of services charges cancellation
❶ Cancellation of withdrawal from counter at the same bank between different places.
❷ Temporary cancellation of nominal fees and services charges for promissory note, bill of exchange and card loss reporting.
❸ No account management charge or annual fee for the designated account (according to the bank).
■ Chinese Banks Will Cancel These Charges Since August 1!
7
This Bank Card Can't Be Used Anymore!
Major changes came to Chinese bank cards starting May 1. The magnetic stripe that appears on many debit cards with chips can't be no longer used by ATMs and POS machines across China from May 1, 2017 in efforts to improve bank card security.
How to Change Your Bank Card?
❶ Bring your ID/ passport as well as the original card to get your brand new chip-enabled one.
❷ Head over to the local bank where you opened your account
■ This Kind of Bank Card Can't Be Used Anymore?
8
The USD You're Allowed to Use
Each Day Are Less Now!
People’s Bank of China officially announced that compared with last year, smaller amount of cash and transfer transaction also needs to be reported to the bank since July 1st in 2017!
Three Specific Transaction subjected to PBC
❶ Foreign Cash Transaction
Accumulative depositing or withdrawing foreign cash, cash settlement, cash exchange, cash remittance and cash notes reach or more than 50,000RMB (or foreign currency of 10,000USD in equivalence) per day.
❷ Domestic Accounts Remittance
Accumulatively reach or more than 500,000RMB (or foreign currency 100,000USD in equivalence ) per day.
❸ Cross-border Accounts Remittance
Accumulatively reach or more than 200,000RMB (or foreign currency 10,000USD in equivalence) per day.
Nowadays, you can only purchase USD or other foreign currencies no more than 50,000RMB in equivalence (about 6950USD at current exchange rate) or the transaction will be reported to PBC if it surpasses the setting limits.
■ The USD You're Allowed to Use Each Day Are Less Now!
9
CRS Is Really Coming This Time!
Since Jan 1st this year, every offshore account is supposed to be checked. Both individuals and enterprises need to write a Statement as a Certificate of Fiscal Resident when they open a new account in a financial institution.
In October last year, China SAT had passed Management Measure on Tax-related Information Due Diligence of Non-Resident Financial Accounts.
The measure aims to prevent overseas accounts from tax evasion via strengthening international tax co-operation with greater transparency. China, together with other 101 countries decided to implement CRS in the near future.
How Can We Deal With It?
HACOS heartfelt message to all of you is:
Run your own business legitimately as well as compliantly.
When in procurement with vendors, remember to ask for invoices/Fapiao(发票).
When in transactions, try not to use your personal account.
In addition, you can establish an HK company to run your business in accordance with tax administration and standardization.
■ CRS Will Affect Every One of Us, Please Notice These Things!
We have summarize the policy concerning VISA and RESIDENCE PERMIT in 2017 before, you can click the link below to check it.
■ China Issues These VISA & RESIDENCE PERMIT Policies In 2017!
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HACOS,Business Services Solutions Master