February 13, 2014

China has announced new reporting requirements for Chinese residents including individuals residing in the country for more than a year and corporations registered in China.

The new Foreign Asset Reporting Requirements (FARRs) which came into effect on January 1, 2014 and were announced by the State Administration for Foreign Exchange (SAFE) announced (in Circular 642) revise the "Measures for the Reporting of Statistics on International Receipts and Payments" which were first published in 1995.

The major revisions are:

• Until now, Chinese residents have only been required to report international economic transactions with non-residents. From 1 January 2014, Chinese residents will be required to report their foreign financial assets and liabilities, and all cross-border transactions.

• Wider definition of those that are required to report including:

· Individuals residing in China for over one year;

· Chinese passport holders who have been absent from China for less than one year;

· Entities or corporations that are incorporated in China; and

· Representative offices or branches of foreign institutions such as banks

Failure to comply with the new reporting requirements will result in fines of up to RMB 300,000 for institutions and companies, and RMB 50,000 for individual cases.

These measures resemble the US FATCA and UK FATCA legislation and follow China's signing of OECD's Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

2014年2月3日

中国《海外账户纳税法案》要求居民申报海外资产

中国已宣布了对于中国居民的新的申报要求，居民不仅包括在中国境内居住一年以上的个人，还包括在中国境内注册的公司。

新的外国资产申报要求（FARRs）于2014年1月1日生效并经国家外汇管理局宣布，其曾宣布在1995年首次出版（通知642）修订《国际收支统计报告办法》。

主要的修订有：

• 至今，只要求中国居民上报与非中国居民进行的国际经济交易。自2014年1月1日起，将要求中国居民上报其对外金融资产和负债以及所有跨境交易。

• 该报告所要求的内容的更广泛的定义包括：

· 在中国境内居住一年以上的个人；

· 已离开中国一年以内的中国护照持有人；

· 在中国境内注册的机构或公司；和

· 国外机构的代表机构和分支机构，如银行

对于未遵守新申报规定的机构和公司须缴纳高达30万元人民币的罚款，而针对个别情况可缴纳5万元人民币罚款。

这些措施类似于美国《海外账户纳税法案》和英国《海外账户纳税法案》的法规，同时遵循中国签署的税务事宜行政互助相关的经合组织的多边公约。