How Common Reporting Standards Will Impact High Net Value Individuals

The Organisation for Economic Co-operation and Development's (OECD) Common Reporting Standards (CRS) are designed to facilitate global exchange of financial account data. Foreign accounts and structures (such as companies and trusts) owned by Chinese tax resident individuals may no longer be confidential and private.

Last October, the State Administration of Taxation of China issued the Administrative Measures for Due Diligence of Tax-related Information on Financial Accounts of Non-residents (the "Administrative Measures") for public comments. This shows that the Chinese government has already initiated the legislation process for the exchange of tax and financial related information with other global institutions. The Administrative Measures are part of a series of actions developed by the Chinese government in response to treaties and cooperation commitments it has made to improve its tax and financial transparency.