Newsletter-No8

POLICY IN FOCUS
政 策 聚 焦
Financial Institutions
Financial Institutions which have to
take on the obligation of declaration
include banks, financial institutions
that accept public deposits,
security companies, future
companies, insurance companies,
investment institutions and trust
companies, while finance
companies, consumer financing
companies and auto financing
companies do not assume the
obligation of declaration.
Financial Accounts
Financial accounts include deposit
accounts, policy contracts, equities
and creditor’s rights, as well as
security accounts, financial
products and escrow accounts like
funds, trusts, etc.
Contents of Declaration
Financial institutions are required to
submit information of the account
owners annually, such as names,
addresses, taxpayer identification
numbers, account numbers,
account balances, as well as
interests, dividends generated
from financial assets, and
incomes by selling financial
assets, etc.
Account Categorisation
By following the categorisation of
OECD, accounts are grouped into
new accounts, existing accounts,
institution accounts and personal
accounts, and different verification
procedures and standards are
adopted under the Administrative
Measures. Enterprises and persons
who open new accounts in financial
institutions also have to sign an
identity declaration document of
residents for tax purposes.
Exchange Procedures of
Financial Account Information
Based on CRS, if overseas residents
for tax purposes open financial
accounts, their account information
will be delivered and exchanged to the
countries which the residents for tax
purposes belong to. Taking the
example of a mainland resident
opening personal account in
Hong Kong, the operation procedures
are listed as follows:
金 融 賬 戶
申 報 內 容
賬 戶 分 類
金 融 賬 戶 信 息 互 換 流 程
Further legal actions will be taken once
tax evasion behaviour is found
Mainland Residents
內 地 居 民
Personal information has to be submitted
when opening account
State
Administration
of Taxation of
China
中 國 國 家 稅 務
總 局
Hong Kong
Financial
Institutions
香 港 金 融 機 構
Exchange of information
Hong Kong
Inland Revenue
Department
香 港 稅 務 局
Delivery of financial account information
12 CONPAK NEWSLETTER