{"id":513,"date":"2023-10-24T03:58:46","date_gmt":"2023-10-23T19:58:46","guid":{"rendered":"https:\/\/www.hiredchina.com\/articles\/2023\/10\/24\/how-to-run-hk-company-under-crs\/"},"modified":"2023-10-24T03:58:46","modified_gmt":"2023-10-23T19:58:46","slug":"how-to-run-hk-company-under-crs","status":"publish","type":"post","link":"https:\/\/www.hiredchina.com\/articles\/how-to-run-hk-company-under-crs\/","title":{"rendered":"How to Run HK Company Under CRS?"},"content":{"rendered":"<blockquote><p>The Common Reporting Standard (CRS) is an information standard for the automatic exchange of tax and financial information on a global level, which the Organisation for Economic Co-operation and Development (OECD) developed in 2014. Its purpose is to comb<\/p><\/blockquote>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.hiredchina.com\/articles\/how-to-run-hk-company-under-crs\/#China_Launched_CRS\" title=\"China Launched CRS\">China Launched CRS<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.hiredchina.com\/articles\/how-to-run-hk-company-under-crs\/#1The_Definition_Of_CRS\" title=\"1.The Definition Of CRS\">1.The Definition Of CRS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.hiredchina.com\/articles\/how-to-run-hk-company-under-crs\/#2_Chinese_CRS_Started_From_July_1\" title=\"2. Chinese CRS Started From July 1\">2. Chinese CRS Started From July 1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.hiredchina.com\/articles\/how-to-run-hk-company-under-crs\/#CRS_Sets_Barriers_For_Those_Attempt_To_Use_Offshore_Accounts_To_Escape_From_Paying_Tax\" title=\"CRS Sets Barriers For Those Attempt To Use Offshore Accounts To Escape From Paying Tax.\">CRS Sets Barriers For Those Attempt To Use Offshore Accounts To Escape From Paying Tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.hiredchina.com\/articles\/how-to-run-hk-company-under-crs\/#How_to_Do_In_Front_Of_CRS\" title=\"How to Do In Front Of CRS?\">How to Do In Front Of CRS?<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.hiredchina.com\/articles\/how-to-run-hk-company-under-crs\/#Source_HiTouch_GDToday\" title=\"Source: HiTouch &amp; GDToday\">Source: HiTouch &amp; GDToday<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"China_Launched_CRS\"><\/span><b>China Launched CRS<\/b><br \/><font><b><font><span style=\"font-size: 18px;\"><span style=\"color: rgb(51, 51, 51);\"><\/span><\/span><\/font><\/b><\/font><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"1The_Definition_Of_CRS\"><\/span><b><span style=\"color: rgb(150, 65, 104);\">1.The Definition<\/span> <span style=\"color: rgb(150, 65, 104);\">Of CRS<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-size: 18px;\">The Common Reporting Standard (CRS) is an information standard for the automatic exchange of tax and financial information on a global level, which the Organisation for Economic Co-operation and Development (OECD) developed in 2014. Its purpose is to&nbsp;<strong>combat tax evasion.<\/strong><\/span><\/p>\n<hr>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"2_Chinese_CRS_Started_From_July_1\"><\/span><b><span style=\"color: rgb(150, 65, 104);\">2. Chinese CRS Started From July 1<\/span><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-size: 18px;\">Shenzhen citizen Mr. Zhang kept busy in the past a month with preparing documents but still failed to open a Hong Kong company bank account. The bank manager repeatedly asked him the capital source, and its purposes; double check his personal information, and requested him&nbsp;to fill a&nbsp;variety of complex documents.<\/span><\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" alt=\"1.jpg\" style=\"\" src=\"https:\/\/media.hiredchina.com\/FntNlCK3xOKdbpD6RGeKDOx1d-1M?imageView2\/0\/format\/webp\/q\/75\" width=\"640\" height=\"280\" title=\"\"><\/p>\n<p style=\"text-align: start;\">\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">With the cooperation of Hong Kong,&nbsp;Chinese CRS took effect from July 1st.&nbsp;This specifically&nbsp;aims at investigating certain domestic financial accounts, including bank, security and insurance accounts.&nbsp;<\/span><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">It&#8217;s a national investigation managed by the State Administration of Taxation, the Ministry of Finance, China Central Bank, China Banking Regulatory Commission, China Insurance Regulatory Commission, the Commission, etc.&nbsp;<\/span><\/p>\n<hr>\n<h3 style=\"\"><span class=\"ez-toc-section\" id=\"CRS_Sets_Barriers_For_Those_Attempt_To_Use_Offshore_Accounts_To_Escape_From_Paying_Tax\"><\/span><b><span style=\"color: rgb(150, 65, 104);\">CRS Sets Barriers For Those Attempt To Use Offshore Accounts To Escape From Paying Tax.<\/span><\/b><br \/><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: center;\"><strong><span style=\"color: rgb(150, 65, 104);\"><img loading=\"lazy\" decoding=\"async\" alt=\"2.jpg\" style=\"\" src=\"https:\/\/media.hiredchina.com\/FiNa0l78bvJAy-ANmGsl3NwHVU61?imageView2\/0\/format\/webp\/q\/75\" width=\"640\" height=\"640\" title=\"\"><br \/><\/span><\/strong><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">Started from January 1st, 2017, HSBC requests applicants to fill a form when they open a Hong Kong bank account. It&#8217;s an agreement which you give a permission to leak out your asset information to the government.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 18px;\"><img loading=\"lazy\" decoding=\"async\" alt=\"3.jpg\" style=\"\" src=\"https:\/\/media.hiredchina.com\/Fg4E-bnmRxrC-wKaXr08untDXOE_?imageView2\/0\/format\/webp\/q\/75\" width=\"589\" height=\"798\" title=\"\"><br \/><\/span><\/p>\n<hr>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"How_to_Do_In_Front_Of_CRS\"><\/span><span style=\"color: rgb(150, 65, 104);\"><strong><span style=\"font-size: 18px;\">How to Do In Front Of CRS?<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/p>\n<p><span style=\"font-size: 18px;\">CRS just works to punish corporations involved in tax evasion and illegal transactions between offshore accounts and of assets to overseas.<\/span><span style=\"font-size: 18px;\">&nbsp;As long as you obey Chinese tax law, it&#8217;s unnecessary to over worry.<\/span><\/p>\n<p style=\"text-align: start;\">\n<p style=\"text-align: center;\"><b><span style=\"color: rgb(150, 65, 104);\">1. Audit Report<\/span><\/b><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">One of the most recommendable ways to build a good reputation is submitting an audit report.&nbsp;An auditor&#8217;s report is considered an essential tool when reporting financial information to users, particularly in business.&nbsp;<br \/><\/span><\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" src=\"data:image\/gif;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAADUlEQVQImWNgYGBgAAAABQABh6FO1AAAAABJRU5ErkJggg==\" width=\"auto\" alt=\"\" title=\"\"><img decoding=\"async\" alt=\"1.png\" style=\"\" src=\"https:\/\/media.hiredchina.com\/FpXXQudHGeR8vA9BWMSq7ZJL3Smo?imageView2\/0\/format\/webp\/q\/75\" width=\"589\" height=\"506.2142857142857\" title=\"\"><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\"><br \/><\/span><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">Since many third-party users&nbsp;<\/span><span style=\"font-size: 18px;\">prefer&nbsp;<\/span><span style=\"font-size: 18px;\">or even require financial information to be certified by an independent external auditor, many auditees rely on auditor reports to certify their information in order to attract investors, obtain loans, and improve public appearance. Some have even stated that financial information without an auditor&#8217;s report is &#8220;essentially worthless&#8221; for investing purposes.<\/span><\/p>\n<hr>\n<p style=\"text-align: center;\"><b><span style=\"color: rgb(150, 65, 104);\">2. Why&nbsp;<\/span><span style=\"color: rgb(150, 65, 104);\">Audit Report So Important?<\/span><\/b><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">Generally speaking, there are two types of the tax return for Hong Kong companies,&nbsp;<strong>zero&nbsp;<\/strong><strong>declaration<\/strong>&nbsp;and&nbsp;<\/span><strong><span style=\"font-size: 18px;\">accounts audit tax return<\/span><\/strong><span style=\"font-size: 18px;\">.<\/span><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">According to the law in Hong Kong, the government gives strict taxation fines if any companies<strong>&nbsp;keep running<\/strong>&nbsp;but<strong>&nbsp;submit zero declaration<\/strong>, they define it as&nbsp;<strong>a fake declaration<\/strong>. Much worse, the person breaks the laws may face&nbsp;<strong>3-year punishment in prison<\/strong>.<\/span><\/p>\n<p style=\"text-align: start;\"><span style=\"font-size: 18px;\">You are also required to provide the audit report to the bank, or they have the right to cancel all your accounts.<\/span><\/p>\n<p style=\"text-align: start;\">\n<p style=\"text-align: start;\"><strong><span style=\"font-size: 18px; color: rgb(150, 65, 104);\">Kindly&nbsp;reminds you, the world is getting transparent on the behavior of tax evasion. There is no way to get away from paying tax under CRS.<\/span><\/strong><\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" src=\"data:image\/gif;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAADUlEQVQImWNgYGBgAAAABQABh6FO1AAAAABJRU5ErkJggg==\" alt=\"\" title=\"\"><img loading=\"lazy\" decoding=\"async\" alt=\"4.png\" style=\"\" src=\"https:\/\/media.hiredchina.com\/FpME3tNTdnnsxLFp0ZBEnef_JHV5?imageView2\/0\/format\/webp\/q\/75\" width=\"630\" height=\"599\" title=\"\"><\/p>\n<h5><span class=\"ez-toc-section\" id=\"Source_HiTouch_GDToday\"><\/span>Source: HiTouch &amp; GDToday<span class=\"ez-toc-section-end\"><\/span><\/h5>\n<hr>\n<p style=\"text-align: start;\">If you need help getting a&nbsp;<span style=\"font-size: 18px;\"><strong>working visa<\/strong><\/span>&nbsp;in&nbsp;<strong>Guangzhou<\/strong>, the below information may help you out.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" alt=\"11.png\" style=\"\" src=\"https:\/\/media.hiredchina.com\/Fq2RGJ7Jr3dcoitHZbyb6QoMcAfz?imageView2\/0\/format\/webp\/q\/75\" width=\"683\" height=\"656\" title=\"\"><\/p>\n<p style=\"text-align: start;\"><img loading=\"lazy\" decoding=\"async\" alt=\"3.png\" style=\"\" src=\"https:\/\/media.hiredchina.com\/FgoCizka9OsKQO-awqzCXT3FMiHu?imageView2\/0\/format\/webp\/q\/75\" width=\"663\" height=\"351\" title=\"\"><\/p>\n<hr>\n<p style=\"text-align: center;\"><img decoding=\"async\" alt=\"GIC.jpg\" style=\"\" src=\"https:\/\/media.hiredchina.com\/FlXXlKXBxtykYAuKbjvAxKMwIbVH?imageView2\/0\/format\/webp\/q\/75\" width=\"500\" height=\"543.2937181663837\" title=\"\"><\/p>\n","protected":false},"excerpt":{"rendered":"The Common Reporting Standard (CRS) is an information standard for the automatic exchange of tax and financial information on a global level, which the Organisation for Economic Co-operation and Development &#8230;","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-513","post","type-post","status-publish","format-standard","hentry","category-pro-tips"],"_links":{"self":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts\/513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/comments?post=513"}],"version-history":[{"count":0,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts\/513\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/media?parent=513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/categories?post=513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/tags?post=513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}