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Common Reporting System (CRS) / Automatic Exchange of Financial Account Information (AEOI)

Glossary

  1. Automatic Exchange of Financial Account Information “AEOI”
    AEOI is a new system that involves the transmission of financial account information from Hong Kong to an overseas tax jurisdiction with which Hong Kong has entered into an AEOI agreement (or known as an “AEOI partner”). The information relates only to the tax residents of the jurisdiction of the AEOI partner.

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  3. Common Reporting Standard “CRS”
    CRS is a worldwide information-gathering and reporting requirement for financial institutions, to help fight against tax evasion and protect the integrity of tax systems. Under the CRS, the Bank is required to determine where you are “tax resident” (this will usually be where you are liable to pay income or corporate taxes by reason of residence in a jurisdiction) and give Inland Revenue Department of Hong Kong information on those customers that are tax resident / paying taxes outside Hong Kong. This information may then be shared between different countries’ tax authorities.

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  5. The Organisation for Economic Co-operation and Development “OECD”
    OECD is a group of member countries plus the European Commission and Brazil, China, India, Indonesia and South Africa as key partners.

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  7. Individual
    A customer that holds a personal account or product with the Bank. Under the CRS, this also includes Sole Proprietorship.

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  9. Sole Proprietorship
    Sole proprietorship is a type of business which is owned and run by one individual and where there is no legal distinction between the owner and the business.

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  11. Entity
    This is defined under the CRS as a legal person or a legal arrangement, such as an organisation, partnership, corporation, trust or foundation. An entity will therefore include any customer that holds a business account, product or service with the Bank except sole proprietorship, who are treated as individuals under the CRS.

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  13. Controlling Person
    This is a natural person who ultimately has a controlling ownership interest in the Entity. Where no natural person(s) exercises control through ownership interests, the Controlling Person(s) of the Entity will be the natural person(s) who exercises control of the Entity through other means. For a trust, the Controlling Persons are the settlor(s), the trustee(s), the protector(s) (if any), the beneficiary(-ies) or class(es) of beneficiaries, and any other natural person(s) exercising ultimate effective control over the trust.

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  15. Self-Certification
    A completed self-certification may be used to confirm your tax residence status under the CRS. The Bank has three types of self-certifications: individual, entity and controlling person. For some types of entity, besides collecting the entity self-certification, the Bank may also need to collect a self-certification from the controlling person(s). This is explained on the entities and controlling person self-certifications.

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  17. Tax Residence
    Your tax residence is the country where you are resident / registered for tax purposes. Each country has its own rules for defining tax residence. For more information on tax residence, please consult your tax adviser or the OECD website.

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  19. Taxpayer Identification Number “TIN”
    TIN is a unique combination of letters and / or numbers assigned to you / your entity. Some countries do not issue a TIN, but may rely on other issued numbers such as social security / insurance numbers (for individual) or company registration numbers for entities.

 

Disclaimer
The information provided herein is for reference purpose only.  It should not be considered as tax or legal advice. Chong Hing Bank Limited (“the Bank”) makes no warranty or representation of its accuracy or completeness and is not responsible for any error or omission, nor shall the Bank be liable for any loss or damage that results from reliance upon the information provided.  You should seek your professional legal and/or tax advice specific to your own situation.

The Chinese translation is for ease of reference only.  In case of any discrepancy between the English version and the Chinese version, the English version shall prevail to the extent of such discrepancy.