Public Consultation for the Draft Measures on the Due Diligence of Non-resident Financial Account Information in Tax Matters
On 14 October 2016, the State Administration of Taxation (“SAT”) of the Peoples’ Republic of China (“PRC”) circulated the draft “Measures on the Due Diligence of Non-resident Financial Account Information in Tax Matters” (hereinafter referred to as “the Measures”) and seek comments from the public. With the release of the Measures, the Standard for Automatic Exchange of Financial Information in Tax Matters becomes one of the hottest topics for Chinese communities concerned with the disclosure of their financial information to the SAT. The main purpose of the Measures is to stipulate the principles and procedures for PRC financial institutions to follow in identifying non-resident accounts and the collection of the related financial information. The Measures are expected to take effect from 1 January 2017 once the official rules are released.