What is CRS and How to Deal with It: World Top Offshore Banking in Taiwan CN, the U.S. and Armenia
  • Posted 18 Oct ,2019


Common Reporting Standard (CRS), first developed in 2014 and has been joined by 153 countries and jurisdictions as of now, is an agreement for governments around the world to enhance the exchange of information in tax matters and to avoid tax evasion. In accordance with this agreement, banks in the signatories, such as Switzerland, Singapore, Australia, Canada, Hong Kong SAR and Macao SAR, shall share account details of their clients with the countries or jurisdictions where they are tax residents. Under such circumstances, opening offshore bank accounts in a non-CRS country becomes a legitimate option for worldwide investors to better allocate their asset.


Opening offshore bank accounts is not to hide assets from tax authorities, but to take full advantages of international banking rules and thus facilitate individuals’ asset allocation. Through opening bank accounts outside the countries in which ones live, people can diversify currency of savings as well as flow of income, enjoy better interest rates on deposits, and move their money more quickly. Currently, Taiwan CN and the U.S. have not yet signed up the CRS and Armenia has not yet set the date for first automatic exchange. Therefore, opening bank accounts in these places is highly recommended.


Taiwan, CN


Offshore Banking Unit (OBU) has long been established in Taiwan, CN, and multiple offshore banking branches of Taiwan banks have been set up to improve Taiwan’s international financial activities and to make this place a regional financial center. Therefore, the legitimacy and autonomy of OBU bank accounts opened in offshore banking branches are firmly guaranteed.


The favorable tax policy in Taiwan also makes Taiwan offshore banking a good choice. As there is no value-added tax in Taiwan, having a Taiwan offshore bank account helps high-net-worth individuals and business owners save tax when conducting investment activities, for instance, U.S. stock trading.



The U.S.


Though the U.S. has its own legislation regarding to tax evasion prevention – Foreign Account Tax Compliance Act (FATCA), there is nothing should be worried about for U.S. bank accounts owners. FATCA is only imposed on U.S. citizens, U.S. permanent residents, people who satisfy the Substantial Presence Test and those who have a domestic corporation or partnership in the U.S.


Offshore bank accounts opened in the U.S., the world largest economy with well-established banking systems, have the highest level of international recognition. In addition, the procedure of opening offshore bank accounts in the U.S. is one of the simplest in the world. Applicants do not have to travel to the U.S. for bank account opening.



Armenia


Armenia, located in Eastern Europe, is an emerging destination where people try to open offshore bank accounts. In order to open an Armenia bank account, applicants only need to provide a few documents, and they will not be subject to due diligence. Such a trait to a large extent shortens the processing time.


Moreover, the monthly management fee for an Armenia bank account is around USD 7 only, making it a cost-efficient back-up plan for many.





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