AIAIG观点
2025年10月21日
Mastering Global Tax Transparency: Strategic Analysis of CRS and FATCA
Disclaimer: The content of this article is for informational reference only and does not constitute investment advice, a solicitation, or a basis for major decision-making. Please make independent judgments and consult professional advisors when needed.
The global financial regulatory environment has undergone fundamental changes over the past decade. The Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) have jointly ushered in the era of Automatic Exchange of Information (AEOI), reshaping the logic of international tax compliance and asset planning.
.png)
Question
Q1.1 What is Automatic Exchange of Information (AEOI)? What are its origins and objectives?
AIAIGAnswer
• Definition and Mechanism: AEOI is a system that automatically and periodically exchanges financial account information of non-local tax residents in bulk between tax authorities, replacing the previous 'on-request' information sharing.
• Three-step process:
1. Financial institutions identify their non-local tax resident clients and collect account information;
2. Report to the local tax authority;
3. The local tax authority automatically exchanges the information in bulk to the client's tax residence jurisdiction at fixed times each year, based on multilateral/bilateral agreements.
• Historical Background: After the 2008 global financial crisis, promoted by the G20 and OECD, with the core goal of curbing offshore tax evasion.
• Essential Positioning: This is not tax law itself, but an information sharing agreement to break bank secrecy and combat cross-border tax evasion; the focus of compliance planning should shift from 'hiding assets' to 'legally managing information reporting trigger conditions'.
• Three-step process:
1. Financial institutions identify their non-local tax resident clients and collect account information;
2. Report to the local tax authority;
3. The local tax authority automatically exchanges the information in bulk to the client's tax residence jurisdiction at fixed times each year, based on multilateral/bilateral agreements.
• Historical Background: After the 2008 global financial crisis, promoted by the G20 and OECD, with the core goal of curbing offshore tax evasion.
• Essential Positioning: This is not tax law itself, but an information sharing agreement to break bank secrecy and combat cross-border tax evasion; the focus of compliance planning should shift from 'hiding assets' to 'legally managing information reporting trigger conditions'.
Disclaimer: The content of this article is for informational reference only and does not constitute investment advice, a solicitation, or a basis for major decision-making. Please make independent judgments and consult professional advisors when needed.
