CRS, how to judge your tax resident status?

CRS | How to Determine Your Taxpayer Resident Status (Personal Edition) Release Date: 20 17-07- 13 Source: Huamei Yousheng Comprehensive Arrangement Author: American Real Estate

When it comes to how to deal with CRS, the most important thing is to judge your possible tax resident status. In this issue, we first list the rules for identifying "natural persons" as tax residents in several major countries (or regions).

Huamei Yousheng American Housing Exhibition

When it comes to how to deal with CRS, the most important thing is to judge your possible tax resident status. In this issue, we first list the rules for identifying "natural persons" as tax residents in several major countries (or regions).

CRS | How to Determine Your Tax Resident Status (Personal Edition)

China

Individuals who have domicile or no domicile in China but have lived in China for over one year shall be recognized as tax residents in China. Having a domicile in China means having a regular domicile in China due to household registration, family and economic interests. The so-called habitual residence is a legal standard to judge whether a taxpayer is a resident or a non-resident, not the actual place of residence or the place of residence within a certain period of time. If an individual is studying, working, visiting relatives or traveling outside China. And must return to live in China after the reasons are eliminated. China is the taxpayer's habitual residence. Living for one year means living for 365 days in a tax year, and temporarily leaving the country for no more than 30 days or no more than 90 days at a time, without deducting the number of days.

Hong Kong

Individuals who meet one of the following conditions shall be regarded as taxpayers in China Mainland and Hongkong:

Individuals who usually live in Hong Kong;

Individuals who have stayed in China Mainland and Hongkong for more than 180 days in one tax year or for more than 300 days in two consecutive tax years (one of which is the relevant tax year);

If an individual has a permanent residence in Hong Kong where his or her family lives, he or she will generally be regarded as "ordinarily residing in China and Hong Kong". Specific legal provisions are as follows:

"Ordinary place of residence" refers to the continuous residence of an individual in the mainland of China and Hongkong, except occasionally or temporarily leaving the country.

To be regarded as an individual who usually resides in China and Hong Kong, the individual must habitually and normally reside in Hong Kong, China, unless he leaves the country temporarily or unexpectedly within a certain period of time. Usually, the concept of residence means that an individual voluntarily lives in Hong Kong for the purpose of settlement, which has certain continuity, regardless of the length of time, and is the normal state of his current life.

When determining the number of days an individual stays in China and Hong Kong, if his stay in China and Hong Kong is less than 1 day, it shall be calculated as 1 day.

Singapore

Individuals who meet any of the following criteria are regarded as tax residents in Singapore:

1) quantitative standard

Living in Singapore for more than 183 days in the calendar year before the tax year;

Working in Singapore (except as a company director) for more than 183 days in the calendar year before the tax year.

2) Qualitative criteria

Individuals permanently reside in Singapore unless there is a reasonable temporary departure.

United States of America

Generally speaking, according to domestic tax laws and regulations, all American citizens and residents are regarded as American taxpayers.

For non-American citizens (foreign individuals), it is necessary to judge whether they are foreign individual tax residents according to the "green card standard" or "actual stay days standard". American resident standards are usually calculated according to the Gregorian calendar year.

Green card standard

According to American immigration law, if a foreigner is a legal permanent resident of the United States LPR at any time in a calendar year, then this person meets the green card standard. The above-mentioned "legal permanent residents" refer to individuals who have obtained USCIS (or its predecessor) permission to live permanently in the United States as immigrants. Generally speaking, when an individual obtains a foreigner registration card (that is, a "green card") issued by USCIS, he obtains the permanent residency in the United States. Unless there are special provisions on double tax resident status discussed below, as long as an individual's legal permanent resident status has not been revoked or legally abandoned by USCIS, the individual will always be regarded as a US tax resident. The expiration of the green card does not necessarily mean the end of the US tax resident status.

Actual stay days standard

A foreign individual shall be deemed to meet this standard if his stay in the United States meets the following two conditions:

Stay in the United States for at least 3 1 day in this calendar year;

According to the following calculation formula, the stay in the United States for three years in this Gregorian calendar year and the past two Gregorian calendar years shall not be less than 183 days:

The total number of days in the United States this year, plus

One-third of the days spent in the United States in the previous year, plus

One sixth of the number of days spent in the United States in the previous year.

Generally speaking, a person's presence in the United States at any time of the day is regarded as his stay in the United States. However, in some specific cases, the individual's stay in the United States is not included in the actual number of days of stay. For information, please refer to the IRS publication No.519, Foreign Individual Tax Guide. ( http://www.irs.gov/pub/irs-pdf/p5 19.pdf)

Election in the first year

If a foreign individual is regarded as a non-US resident in the previous calendar year, but reaches the actual number of days of stay in the next year and is regarded as a US tax resident, he can choose to become a US tax resident for a period of time in the previous year. For information, please refer to the IRS publication No.519, Foreign Individual Tax Guide.

Double taxation resident

Some green card holders and individual foreign residents may also be taxpayers in jurisdictions that have signed tax treaties with the United States. If such "double taxation residents" are judged as tax residents of the other contracting party according to the "tie-breaker rule" of the tax treaty, they can choose to calculate their tax payable in the United States as non-resident foreign individuals in the whole or part of the tax year, but only if they inform the US tax authorities in advance, otherwise they will continue to calculate their tax payable as US tax residents.

Britain, England

From April 6, 20 13, the status of British tax residents must be judged according to the legal residence test results. Article 45 of the 20 13 Financial Act lists the contents of the legal residence test, and determines which are British tax residents and which are not. The content of the test includes how long an individual has been in the UK, whether he only has a home in the UK, whether he works full-time in the UK and his connection with the UK.

Generally speaking, individuals who have stayed in the UK for more than half a year are likely to be judged as British tax residents. HMRC issued a guideline on testing legal residents, and set up a testing tool (Taxpayer Indicator) on the Internet for individuals to check their taxpayer status.

If the personal situation is complicated, you should also refer to HMRC's guidelines on residence, household registration and remittance. You can also log on to the relevant page of Gov.uk website or consult their tax consultant.

Canada

Whether an individual is a tax resident depends on the specific situation. Canadian individual tax resident status can be divided into ordinary residents (also known as de facto residents) or deemed residents. To judge an individual's tax resident status, we need to judge according to his overall situation and all relevant facts, and refer to the Canadian tax law and the court's judgment. Canadian tax residents include individuals who regularly, usually or habitually live and live in Canada. Therefore, having a residence relationship with Canada, such as having a home in Canada, having social and economic interests in Canada, and having other connections with Canada, are all important considerations. In addition, the "presumption clause" in Canadian tax law is also very important for judging whether an individual constitutes a Canadian resident. (These "deemed identification regulations" apply to individuals who do not live in Canada but have connections with Canada, such as staying in Canada for more than 183 days or more in a tax year and being employed by the Canadian government or a Canadian province. When individuals decide whether they are Canadian residents, they also need to consider the definition of residents in the tax treaties signed by Canada.