Measures for the Administration of Due Diligence on Tax-related Information of Non-Resident Financial Accounts

Release Time:

2018-05-30 15:27

In order to fulfill the international obligation of automatic exchange of tax-related information on financial accounts and standardize the due diligence behavior of financial institutions on tax-related information on non-resident financial accounts, The State Administration of Taxation, the Ministry of Finance, the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission have formulated the Administrative Measures for Due Diligence on Tax-related Information of Non-Resident Financial Accounts, which are hereby promulgated and shall take effect as of July 1, 2017.

It is hereby announced.

State Administration of Taxation People's Bank of Finance

Banking Regulatory Commission, Securities Regulatory Commission, Insurance Regulatory Commission

May 9, 2017

Measures for the Administration of due diligence on tax-related information of non-resident financial accounts

Chapter I General rules

Article 1 In order to fulfill the obligations stipulated in the Multilateral Convention on Mutual Assistance in Tax Collection and Administration and the Agreement between Multilateral Competent Authorities on the Automatic Exchange of Tax-related Information on Financial Accounts, and to regulate the due diligence conduct of financial institutions on tax-related information on Non-resident financial accounts, in accordance with the provisions of the Law of the People's Republic of China on the Administration of Tax Collection, the Law of the People's Republic of China on Anti-Money Laundering and other laws and regulations, To formulate these Measures.

Article 2 These Measures shall apply to financial institutions established within the territory of the People's Republic of China in accordance with the law to conduct due diligence on tax-related information of non-resident financial accounts.

Article 3 Financial institutions shall follow the principles of honesty, credit, prudence and diligence, understand the tax resident identity of the account holder or relevant controller for different types of accounts, identify non-resident financial accounts, and collect and submit account related information in accordance with the provisions of these Measures.

Article 4 Financial institutions shall establish a complete due diligence management system for non-resident financial accounts, design reasonable business processes and operational norms, and regularly evaluate the implementation of these measures, properly keep the data collected during the due diligence process, and strictly keep the information confidential. Financial institutions shall make uniform requirements for their branches to carry out the due diligence work stipulated in these Measures and supervise and manage them.

The financial institution shall fully explain to the account holder the information collection and submission obligations it needs to perform, and shall not explicitly, imply or help the account holder to hide identity information or assist the account holder to hide assets.

Article 5 The account holder shall cooperate with the due diligence work of the financial institution, truthfully, timely, accurately and completely provide the relevant information provided by these Measures to the financial institution, and bear the responsibility and risk of failing to comply with the provisions of these Measures.

Chapter Two basic definition

Article 6 The financial institutions mentioned in these Measures include deposit institutions, custodial institutions, investment institutions, specific insurance institutions and their branches:

(1) Depository institutions refer to institutions that take deposits in their daily business activities;

(2) Custodian institutions refer to institutions that derive more than 20 percent of their total revenue in the last three fiscal years from holding financial assets for clients. If the institutions are established less than three years, they shall be calculated according to the duration of their existence;

(3) An investment institution means an institution that meets one of the following conditions:

(1) More than 50% of the total revenue in the past three fiscal years comes from institutions that invest and operate financial assets for clients, and if the institution is established less than three years, it is calculated according to the survival period of the institution;

(b) In the last three fiscal years, more than 50 percent of the total income from investment, reinvestment or trading of financial assets, and by depository institutions, custodian institutions, specific insurance institutions or investment institutions referred to in the first paragraph of this paragraph to manage and make investment decisions, institutions established less than three years, according to the duration of the institution;

3. Securities investment funds, private investment funds and other investment entities established for the purpose of investing, reinvesting or trading financial assets.

(4) A specific insurance institution refers to an institution that carries out insurance or annuity business with cash value. The term "insurance institution" as mentioned in these Measures refers to the institution whose income from insurance, reinsurance and annuity contracts accounted for more than 50% of the total income in the previous Gregorian calendar year, or whose assets under insurance, reinsurance and annuity contracts accounted for more than 50% of the total assets at the end of the previous Gregorian calendar year.

The term "financial assets" as used in these Measures includes securities, partnership interests, bulk commodities, swaps, insurance contracts, annuity contracts or the rights and interests of the above assets, including futures, forward contracts or options. Financial assets do not include direct non-debt equity in physical commodities or real estate.

Article 7 The following institutions belong to the financial institutions prescribed in Article 6 of these Measures:

(1) Commercial banks, rural credit cooperatives and other financial institutions that accept public deposits, as well as policy banks;

(2) Securities companies;

(3) futures companies;

(4) Securities investment fund management companies, private fund management companies, partnerships engaged in private fund management business;

(5) Insurance companies or insurance asset management companies that carry out insurance or annuity business with cash value;

(6) Trust companies;

(7) Other qualified institutions.

Article 8 The following institutions do not belong to the financial institutions provided for in Article 6 of these Measures:

(1) Financial asset management companies;

(2) Financial companies;

(3) Financial leasing companies;

(4) auto financing companies;

(5) Consumer finance companies;

(6) money brokerage companies;

(7) securities registration and clearing institutions;

(8) Other institutions that do not meet the requirements.

Article 9 The financial accounts mentioned in these Measures include:

(1) Deposit account refers to the account formed by conducting business with the nature of deposit, including current deposit, time deposit, traveler's check, credit card with pre-deposit function, etc.

(2) Custody account refers to the account formed for the business of holding financial assets for others, including the business of buying and selling financial assets on behalf of clients, and the business of accepting clients' entrustment and managing entrusted assets for clients:

1. The business of buying and selling financial assets on behalf of customers includes securities brokerage business, futures brokerage business, precious metals business, national debt business or other similar business on behalf of customers;

2. The business of accepting the entrustment of customers and managing the entrusted assets for customers includes the initiation, establishment or management of financial products, funds, trust plans, special accounts/aggregate asset management plans or other financial investment products that do not have the status of independent legal persons by financial institutions.

(3) Other accounts refer to accounts that meet one of the following conditions:

1. The equity or creditor's rights and interests of the investment institution, including the partnership interests of the private investment fund and the beneficial rights of the trust;

2. Insurance contracts or annuity contracts with cash value.

Article 10 The term "non-residents" as mentioned in these Measures refers to individuals and enterprises (including other organizations) other than Chinese tax residents, but does not include government agencies, international organizations, central banks, financial institutions or companies listed on the securities market and their affiliated institutions. The aforesaid securities market refers to the securities market recognized and regulated by the local government. Chinese tax residents refer to resident enterprises or resident individuals as stipulated in the Chinese tax law.

The term "non-resident financial account" as mentioned in these Measures refers to the financial account opened or maintained by a financial institution within China and held by a non-resident or a passive non-financial institution with a non-resident controller. A financial institution shall classify a non-resident financial account as a non-resident financial account for management from the date it is identified.

If the account holder is a tax resident of China and a tax resident of other countries (regions) at the same time, the financial institution shall collect and submit its account information in accordance with the provisions of these Measures.

Article 11 The account holder mentioned in these Measures refers to the individual or institution registered or confirmed by the financial institution as the account owner, excluding the agent, the nominal holder, the authorized signatory and other individuals or institutions who hold the account for the benefit of others.

The account holder of a cash value insurance contract or an annuity contract means any person or institution entitled to receive the cash value or to change the beneficiaries of the contract or, if no such person or institution exists, the owner of the contract and the person or institution with vested rights to make payments under the terms of the contract. When the cash value insurance contract or annuity contract expires, the account holder includes the individual or institution entitled to receive the payment under the contract.

Article 12 The term "passive non-financial institution" as mentioned in these Measures refers to an institution that meets one of the following conditions:

(a) in the previous calendar year, dividends, interest, rent, royalty income and other income is not active business activities, and the transfer income of financial assets on the basis of the above-mentioned income accounted for more than 50 percent of the total income of non-financial institutions;

(b) At the end of the previous Gregorian calendar year, the financial assets that can generate the income mentioned in paragraph 1 of this paragraph accounted for more than 50 percent of the total assets of non-financial institutions;

(3) Investment institutions in tax resident countries (regions) that do not implement standards for the automatic exchange of tax-related information on financial accounts.

The following non-financial institutions are not classified as passive non-financial institutions:

(1) the listed company and its affiliated institutions;

(2) Government agencies or agencies that perform public service functions;

(3) Holding companies established solely for the purpose of holding equity in non-financial institutions or providing financing and services to them;

(4) An enterprise established less than 24 months ago and not yet engaged in business;

(5) Enterprises in the process of asset liquidation or reorganization;

(6) Enterprises that only carry out financing or hedging transactions with affiliated institutions within the Group (which are all non-financial institutions);

(7) Non-profit organizations.

Article 13 The "controller" as mentioned in these Measures refers to an individual who exercises control over an organization.

The controller of the company decides according to the following rules:

(1) Individuals who directly or indirectly own more than 25 percent of the company's equity or voting rights;

(2) Individuals who control the company through personnel, financial and other means;

(3) senior management personnel of the company.

The controller of a partnership is an individual who owns more than 25 percent of the partnership interest.

The controller of the trust refers to the trustor, trustee, beneficiary and other individuals who exercise ultimate and effective control over the trust.

A controller of a fund means an individual who owns more than 25 percent of the equity or other controls the Fund.

Article 14 The term "affiliated institutions" as mentioned in these Measures refers to the fact that one institution controls another institution, or the two institutions are jointly controlled, then the two institutions are related to each other.

The term "control" as mentioned in the preceding paragraph refers to directly or indirectly owning more than 50% of the equity and voting rights of the institution.

Article 15 The financial accounts mentioned in these Measures include stock accounts and newly opened accounts.

Stock accounts are accounts that meet one of the following conditions, including stock individual accounts and stock institutional accounts:

(1) Financial accounts held by financial institutions, individuals or institutions as of June 30, 2017;

(2) Financial accounts opened after July 1, 2017 (inclusive, the same below) and meet the following conditions:

1. The account holder has opened the account referred to in paragraph 1 of this paragraph with the same financial institution;

2. The account referred to in subparagraph 2 of this paragraph and the account referred to in subparagraph 1 of this paragraph are regarded as the same account by the above financial institution when determining the total balance of the account;

3. The financial institution has carried out anti-money laundering customer identification for the accounts mentioned in paragraph 1 of this paragraph;

4. When opening an account, the account holder does not need to provide other information except those required by these Measures.

Stock personal accounts include low net worth accounts and high net worth accounts. Low net worth accounts refer to accounts with a total account balance not exceeding the equivalent of one million US dollars (" one million US dollars ", the same below) as at June 30, 2017, and high net worth accounts refer to accounts with a total account balance of more than one million US dollars as at June 30, 2017.

Newly opened accounts refer to financial accounts opened in financial institutions after July 1, 2017, except the accounts specified in Paragraph 2 (2), held by individuals or institutions, including newly opened personal accounts and newly opened institutional accounts.

Article 16 The term "total account balance" as mentioned in these Measures refers to the sum of the value of all financial account balances or assets held by the account holder in the same financial institution and its affiliated institutions.

The accounts that financial institutions need to aggregate are limited to all financial accounts that can be identified through key data items such as customer number and taxpayer identification number in the computer system.

Each account holder of a joint account shall calculate the total balance of the joint account when adding up the balance.

When determining whether a high net worth account is a high net worth account, the account manager knows or should know that several accounts in the financial institution where he works are directly or indirectly owned or controlled by the same person, he shall sum up these accounts.

The term "account manager" as mentioned in the preceding paragraph refers to the personnel appointed by financial institutions, who have direct contact with specific customers and introduce, recommend or provide relevant financial products and services or provide other assistance to customers according to their needs, but does not include the personnel who meet the above-mentioned conditions and provide the above-mentioned services to customers only for accidental reasons.

When a financial institution calculates the total balance of an account in a currency other than US dollars, it shall convert the account into US dollars according to the central parity rate of foreign exchange published by the People's Bank of China on the date of calculation. When converted into US dollars, it may be converted according to the amount in the original currency or the amount recorded in the accounting standard currency of the financial institution.

Article 17 The term "non-resident identification" as mentioned in these Measures refers to the relevant elements used by financial institutions to search and judge whether the stock individual account holder is a non-resident individual, including:

(1) the overseas identity certificate of the account holder;

(2) the current overseas residence or postal address of the account holder, including a post office box;

(3) the overseas telephone number of the account holder, and there is no domestic telephone number in China;

(4) Instructions for regular transfer from accounts other than deposit accounts to overseas accounts;

(5) the overseas address of the account agent or the authorized signatory;

(6) the transfer address or retention address outside the country, and it is a unique address. Forwarding address refers to the address at which the account holder requests that his or her relevant letter be addressed to the sender, who then delivers the letter to the account holder upon receipt of the letter. Retention address refers to the address at which the account holder requests that his/her correspondence be temporarily deposited.

 

Article 18 The term "certification materials" as mentioned in these Measures refers to:

(1) Tax resident identity certificate issued by the government;

(2) a valid identification certificate issued by the government containing the name of the individual and usually used for identification, or an official document issued by the government containing the name of the organization and the main office address or address of incorporation.

Chapter III Personal account due diligence

Article 19 Financial institutions shall conduct due diligence on newly opened personal accounts in accordance with the following provisions:

(1) When an individual opens an account, the financial institution shall obtain a tax resident status declaration document signed by the account holder (hereinafter referred to as the "Declaration document") to identify whether the account holder is a non-resident individual. When a financial institution receives an application for opening an individual account through its electronic channels, it shall require the account holder to provide an electronic declaration document. The declaration document shall be part of the account opening information, and the information related to the declaration document may be incorporated into the application for account opening. When an individual opens a financial account on behalf of another person or a unit opens a financial account on behalf of an individual, a declaration document may be signed by the agent after the written authorization of the account holder.

(2) The financial institution shall review the rationality of the declaration documents based on the account opening information (including the information collected through the anti-money laundering customer identification procedure), mainly to confirm whether there is an obvious contradiction between the information filled in and other information. If the financial institution considers that there is unreasonable information in the declaration documents, it shall require the account holder to provide valid declaration documents or provide explanations. No account shall be opened without a valid declaration document or reasonable explanation.

(3) If identified as a non-resident individual, the financial institution shall collect, record and submit the required information.

(4) If the financial institution knows or should know that the information in the original declaration documents is inaccurate or unreliable due to changes in the circumstances of newly opened personal accounts, it shall require the account holder to provide effective declaration documents. If the account holder fails to provide the declaration document within 90 days from the date on which it is required to do so, the financial institution shall manage the account as a non-resident account.

Article 20 Financial institutions shall select the following methods to complete due diligence on the stock of individual low net worth accounts before December 31, 2018:

(1) For the account holder who has an address in the existing customer information (including the information collected through the anti-money laundering customer identification procedure, the same below), and there are supporting materials to prove that the address is the current residence or the address is located in the country (region) of the current residence, it can be determined whether the account holder is a non-resident individual according to the address of the account holder. If the mail cannot be delivered, the address left in the customer's information shall not be regarded as the current residence address.

(b) Use the existing information system to conduct electronic record search, identify whether there is any non-resident identification in the account.

If there is no current address information in the existing customer information, or the account situation has changed so that the current address proof material is no longer accurate, the financial institution shall carry out due diligence in the second way of the preceding paragraph.

Article 21 Financial institutions shall, before December 31, 2017, complete the following due diligence procedures for outstanding individual high net worth accounts:

(1) Carry out electronic record search and paper record search to identify whether there is any non-resident identification in the account. The paper records to be retrieved include all the paper information obtained in the past five years related to the account.

Financial institutions that can electronically retrieve all non-resident identification field information using existing information systems may not carry out paper record retrieval.

(b) Ask the account manager whether the client is a non-resident individual.

22nd for the stock of individual low net worth accounts, after June 30, 2017 at the end of any Gregorian calendar year account total balance of more than one million US dollars, the financial institution should be before December 31 of the next year, in accordance with the procedures prescribed in Article 21 of the Measures to complete due diligence on the account.

Article 23 If a financial institution can confirm that the account holder is a non-resident individual through the existing customer information, it shall collect, record and submit the required information. If it cannot be confirmed, the account holder shall be required to provide a declaration document. If the declaration is made by a Chinese tax resident individual, the financial institution shall require the individual to provide corresponding certification materials; Where the declaration is made by a non-resident individual, the financial institution shall collect, record and submit the required information. If the account holder fails to provide the declaration document within 90 days from the date on which it is required to do so, the financial institution shall manage the account as a non-resident account.

Financial institutions do not need to further deal with the inventory of personal accounts that are not found to have non-resident identification, but they should establish a continuous monitoring mechanism. When the account status changes and non-resident signs appear, the procedures prescribed in the preceding paragraph shall be carried out.

Article 24 For a cash value insurance contract or an annuity contract, where a financial institution knows or should know that the beneficiary of the death insurance benefit is a non-resident individual, it shall manage its account as a non-resident account.

 

Chapter IV: Institutional account due diligence

Article 25 Financial institutions shall conduct due diligence on newly opened institutional accounts in accordance with the following provisions:

(1) When the institution opens an account, the financial institution shall obtain a declaration document signed by the authorized person of the institution to identify whether the account holder is a non-resident enterprise or a passive non-financial institution. The declaration document shall be part of the account opening information, and the information related to the declaration document may be incorporated into the application for account opening.

(2) The financial institution shall review the rationality of the declaration documents based on the account opening information (including the information collected through the anti-money laundering customer identification procedure) or public information, mainly to confirm whether there is an obvious contradiction between the information filled in and other information. If the financial institution considers that there is unreasonable information in the declaration documents, it shall require the account holder to provide valid declaration documents or provide explanations. No account shall be opened without a valid declaration document or reasonable explanation.

(3) If it is identified as a non-resident enterprise, the financial institution shall collect, record and submit the required information. Where an institution such as a partnership declares that it does not have tax resident status, a financial institution may determine its tax resident country (region) according to the location of its actual management institution.

(4) Identified as a negative non-financial institution, the financial institution shall identify its controller according to the information collected by the anti-money laundering customer identification procedure, and obtain the statement document signed by the authorized person of the institution or the controller to identify whether the controller is a non-resident individual. Where a negative non-financial institution is identified as having a non-resident controller, the financial institution shall collect and record relevant information about the negative non-financial institution and its controller.

If the account holder is a non-resident enterprise, it should also be further identified whether it is also a passive non-financial institution with a non-resident controller.

(5) If the financial institution knows or should know that the information in the original declaration documents is inaccurate or unreliable due to changes in the circumstances of the newly opened institutional accounts, it shall require the authorized person of the institution to provide effective declaration documents. If the institutional authorizer fails to provide the declaration document within 90 days from the date of being required to provide it, the financial institution shall treat its account as a non-resident account management.

Article 26 A financial institution shall identify whether the account holder of a stock institution is a non-resident enterprise according to the existing customer information or the identification of the domestic foreign exchange account of an overseas institution.

In addition to the declaration documents signed by the authorized person of the institution or public information can be confirmed as a Chinese tax resident enterprise, the above information indicates that the institution is a non-resident enterprise, shall be identified as a non-resident enterprise.

If it is identified as a non-resident enterprise, the financial institution shall collect, record and submit the required information.

Article 27 A financial institution shall identify whether an account holder of an existing institution is a passive non-financial institution. If it is confirmed through existing customer profiles or public information that it is not a passive non-financial institution, no further processing is required. If it cannot be confirmed, the financial institution shall obtain a declaration document signed by the authorized person of the institution. Where a negative non-financial institution is declared, its controller shall be further identified in accordance with the provisions of paragraph 2. If the declaration document is not available, the financial institution shall treat the account holder as a passive non-financial institution.

If the financial institution is identified as a negative non-financial institution and the total balance of the account exceeds $1 million as of June 30, 2017, the financial institution shall obtain a declaration signed by the controller or authorized person of the institution to identify whether the controller is a non-resident individual. If the declaration document cannot be obtained, the financial institution shall conduct a non-resident identification search for the controller to identify whether it is a non-resident individual. If the total balance of the account does not exceed US $1 million, the financial institution can identify whether the controller of the negative non-financial institution is a non-resident individual based on existing customer data. The financial institution may not collect information about the controller if the existing customer profile cannot be identified.

Where a negative non-financial institution is identified as having a non-resident controller, the financial institution shall collect and record relevant information about the negative non-financial institution and its controller.

Article 28 For stock institutional accounts with a total balance of more than $250,000 as of June 30, 2017, the financial institution shall complete due diligence on the account before December 31, 2018.

Financial institutions are not required to conduct due diligence on outstanding institutional accounts with aggregate balances of up to $250,000 as of June 30, 2017. However, when the total balance of the account at the end of any subsequent calendar year exceeds US $250,000, the financial institution shall complete due diligence on the account by December 31 of the following year in accordance with the provisions of Articles 26 and 27 of these Measures.

 

Chapter V Other compliance requirements

Article 29 Financial institutions may, according to their own business needs, apply the due diligence procedures for newly opened accounts to existing accounts.

Article 30 Where a financial institution entrusts other institutions to sell financial products to customers, the marketing agency shall cooperate with the entrusted institution in carrying out the due diligence work required by these Measures, and provide the entrusted institution with the information required by these Measures.

Article 31 A financial institution may entrust a third party to conduct due diligence, but the relevant responsibility shall still be borne by the financial institution. Where funds, trusts, etc., belong to investment institutions, the fund management company and trust company can respectively complete the due diligence related work as a third party.

Article 32 Financial institutions shall establish a monitoring mechanism for changes in account holder information, including requiring account holders to inform financial institutions of changes in relevant information as provided for in these Measures within 30 days. The financial institution shall re-identify whether the account holder or the relevant controller is a non-resident in accordance with the relevant due diligence procedures within 90 days from the date on which it knows or should know that the relevant information about the account holder has changed or before December 31 of the current year.

Article 33 No due diligence is required for the following accounts:

(a) Pension accounts that meet the following conditions:

1. Subject to government regulation;

2. Enjoy tax incentives;

3. Report account information to tax authorities;

4. Withdrawals can only be made when the specified retirement age and other conditions are reached;

5. Annual contributions not exceeding $50,000, or lifetime contributions not exceeding $1 million.

(2) Social security accounts that meet the following conditions:

1. Subject to government regulation;

2. Enjoy tax incentives;

3. Withdrawals should be related to the purpose for which the account was established, including medical treatment;

4. Annual contributions shall not exceed $50,000.

(3) Term life insurance contracts that meet both of the following conditions:

1. During the duration of the contract or until the insured reaches the age of ninety (whichever is shorter), the premium shall be paid at least annually, and the premium shall not decrease over time;

2. No one can obtain the insured value without terminating the contract;

3. Upon rescission or termination of the contract, the amount payable (excluding death benefits) shall not exceed the total accumulated premiums paid for the contract after deducting the expenses related to the duration of the contract;

4. The contract shall not be transferred by means of value.

(4) Accounts opened for the following purposes:

1. Court ruling or judgment;

2. Sale, transaction or lease of immovable or movable property;

3. In the case of real estate mortgage loans, reserve part of the money to facilitate the payment of taxes or insurance related to the real estate;

4. For paying taxes.

(5) Deposit accounts that meet both of the following conditions:

1. Caused by overpayment of credit card or other payments, and the excess amount will not be immediately returned to the account holder;

2. The account holder is prohibited from making an overpayment of more than $50,000, or the account holder shall return the amount of the account holder who makes an overpayment of more than $50,000 within 60 days.

(6) Dormant accounts with a balance of not more than $1,000 in the preceding calendar year. A dormant account is an account (excluding an annuity contract) that meets one of the following conditions:

1. The account holder has not initiated any account related transactions with the financial institution in the past three calendar years;

2. The account holder has not communicated any account related matters with the financial institution in the past six calendar years;

3. For insurance contracts with a cash value, the account holder has not communicated any matters related to the account with the financial institution in the last six calendar years.

(7) Accounts held by Chinese government organs, public institutions, the army, armed police forces, residents' committees, villagers' committees, community committees, social organizations and other units; Accounts opened by military personnel (armed police) with military identification documents (armed police).

(8) Accounts opened by policy banks for the purpose of implementing government decisions.

(9) Compensation reinsurance contracts between insurance companies.

Article 34 Financial institutions shall properly keep the information collected during the implementation of these Measures for at least five years from the end of the submission period. The relevant information may be stored in electronic form, but it shall be ensured that the paper version can be provided in accordance with the requirements of the relevant industry supervision and administration authorities and the State Administration of Taxation.

Article 35 Financial institutions shall summarize the following non-resident account information submitted to domestic branches, and indicate the name, address and taxpayer identification number of the financial institution submitted information:

(a) individual account holder's name, current address, tax resident country (region), resident country (region) taxpayer identification number, place of birth, date of birth; The name and address of the institutional account holder, the tax resident country (region) and the taxpayer identification number of the resident country (region); If the institutional account holder is a passive non-financial institution with a non-resident controller, it shall also submit the name, current residence address, tax resident country (region), taxpayer identification number, place of birth and date of birth of the non-resident controller.

(2) Account number or similar information.

(c) the balance or net value of a single non-resident account at the end of the Gregorian calendar year (including the cash value or surrender value of insurance contracts or annuity contracts with cash value). If the account is cancelled within the current year, the balance shall be zero, and it shall be indicated that the account has been cancelled.

(4) Deposit accounts, the total amount of interest received or credited to the account in the Gregorian calendar year.

(5) escrow account, the total amount of interest and dividends received or credited to the account in the Gregorian calendar year, and other total income received or credited to the account due to assets under custody. If the financial institution to which the information is submitted is an agent, an intermediary or a nominal holder, the total amount of income received or credited to the escrow account due to the sale or redemption of financial assets shall be submitted.

(6) For other accounts, the total amount of income received or credited to the account in the Gregorian calendar year, including the total amount of redemption funds.

(7) Other information required by the State Administration of Taxation.

If the above information involves the amount, it shall be submitted in the original currency and marked with the name of the original currency.

For the stock account, if the existing customer information of the financial institution does not contain the taxpayer identification number, date of birth or place of birth of the resident country (region), it is not necessary to submit the above information. However, financial institutions should actively take measures to obtain the above information before December 31 of the following year when the above account is identified as a non-resident account.

If the non-resident account holder does not have the taxpayer identification number of the resident country (region), the financial institution is not required to collect and submit the taxpayer identification number information.

Article 36 Financial institutions shall log in to the website of the State Administration of Taxation for registration before December 31, 2017, and submit the information mentioned in Article 35 as required before May 31 of each year.

Chapter VI Supervision and administration

37th financial institutions shall establish the implementation of the monitoring mechanism, according to the annual assessment of the implementation of these measures, timely discovery of problems, rectification, and before June 30 of the next year to the relevant industry supervision and administration departments and the State Administration of Taxation written report.

Article 38 A financial institution shall be ordered by the State Administration of Taxation to make corrections within a time limit under any of the following circumstances:

(1) failing to carry out due diligence in accordance with the provisions of these Measures;

(2) Failure to establish an implementation monitoring mechanism in accordance with these Measures;

(3) Intentionally misreporting or missing information about the account holder;

(4) helping the account holder hide real information or falsify information;

(5) Other violations of these Measures.

If it is not corrected within the time limit, the tax authorities will record the relevant tax credit information and use it for tax credit evaluation. The relevant financial authorities shall be notified of the violations.

Article 39 For serious violations by financial institutions, the relevant financial authorities may take the following measures:

(1) Ordering a banking institution to suspend business for rectification or revoking its business license;

(2) Cancel the qualifications of directors, senior managers and other directly responsible personnel of financial institutions and prohibit them from engaging in work related to the financial industry;

(3) To order the financial institution to take disciplinary measures against the directors, senior managers and other persons directly responsible.

Article 40 For the account holder's serious violations, the relevant financial authorities in charge of punishment in accordance with relevant laws and regulations, suspected of crimes, transferred to the judicial organs for handling.

Chapter VII Supplementary Provisions

Article 41 Where China and relevant countries (regions) have signed bilateral agreements on the due diligence of tax-related financial accounts of non-residents before the implementation of these Measures, the relevant requirements shall be stipulated separately.

Article 42 The State Administration of Taxation shall establish a tax-related information sharing mechanism with relevant financial authorities to ensure that the State Administration of Taxation obtains the information provided for in these Measures in a timely manner. The requirements for submitting tax-related information of non-resident financial accounts shall be stipulated separately.

Article 43 The terms "above" and "below" in these Measures include the number, and "dissatisfied" and "over" do not include the number.

Article 44 These Measures shall come into force as of July 1, 2017.

Related News

Dingfeng Asset Management Co., Ltd.

400-609-0088

TEL:400-609-0088(Marketing)   021-58310331(Administrative)
E-MAIL:hr_df@dfasset.com

ADD:16F, Building 6, Lujiazui Century Financial Plaza, No. 308 Jinkang Road, Pudong New Area, Shanghai

WEB:www.dfasset.com

©2022 Dingfeng Asset Management Co., Ltd.  Power By : www.300.cn   |  SEO  |  Business License