There were many advantages and great conveniences of offshore account. But now?
Sorting out the past two years on offshore account, on foreign exchange aspects of the policy, information and changes, you will find that the offshore account is becoming much more useless than before.
#Mainly for the following reasons 🔽
Tax Avoidance Has Been Lost
The most important purpose for most of the businessmen to set up offshore companies or accounts is tax avoidance. But now, offshore account is easier to be inspected because of CRS.
The full name of CRS is “Financial Account Tax Information Automatic Exchange Standards.”
Since China mainland, Hongkong, U.S and other more than 100 countries have joined and executed CRS, your account information will be shared and inspected easily by tax authorities.
In other words, the tax authorities will find out easily someone who doesn't pay tax.
If your HK account is still active, please have your account audited as soon as possible in case of government inspection.
Personal Settlement Has Been Limited
In the first half of last year, the SAFE stipulated that offshore accounts could only be transferred to immediate family members and set monthly quotas.
If you want to transfer to other individuals, the Banks will ask you to submit a real transaction record and proof.
If other individuals transfer to your offshore account and you want to withdraw, a real transaction record and proof are also needed to submit.
However, if the individuals who transfer to you are from sensitive countries and regions, the money in your account will be frozen!
Only you submit a series of supporting documents according to the bank request can you withdraw money from the offshore account.
Operating Costs Become Higher&Higher
The cost of registration, opening bank accounts, annual inspection and declaration will be 10，000RMB at least per year. According to the level of your business, the cost of declaration will be different.
Some people say that I can choose not to pay the tax to save some money.
Sorry to tell that you will face risk jail. Hardly worth for!
What To Do Under This Circumstance?
It is suggested that you apply for the rights of import & export in the name of your own company so as to engage in export on your own.
You’d better use foreign currency when settle your account.
You can also apply for export rebates when do business via the ways mentioned above.
🔼 That’s the most important tips HACOS want to give our foreign friends that the best way to deal with strict CRS policy.
HACOS will continue to share latest information and interpretation for you.
Source: @外土司
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