By 2025, more than 100 countries and regions worldwide have joined the CRS (Common Reporting Standard) information exchange network, including popular investment destinations such as Hong Kong, Singapore, Switzerland, Cayman Islands, and BVI. Your overseas bank deposits, stock accounts, insurance cash value, fund shares - these information are automatically transmitted back to the domestic tax bureau every year. In earlier years, I often heard people say; My income overseas is unknown domestically;. It's not that I don't know now, but I know very well: how much money is left in the account, how much interest is paid, how much dividends are paid, how much profit was made from buying and selling stocks, and how much was lost. The tax bureau
How do you declare your overseas income in the CRS era? 7 Types of Overseas Income x Personal Income Tax APP Operation Guide
Core Content Points
By 2025, more than 100 countries and regions worldwide have joined the CRS (Common Reporting Standard) information exchange network, including popular investment destinations such as Hong Kong, Singapore, Switzerland, Cayman Islands, and BVI. Your overseas bank deposits, stock accounts, insurance cash value, fund shares - these information are automatically transmitted back to the domestic tax bureau every year.
In earlier years, I often heard people say; My income overseas is unknown domestically;. It's not that I don't know now, but I know very well: how much money is left in the account, how much interest is paid, how much dividends are paid, how much money was earned from buying and selling stocks, and how much money was lost. The tax bureau is very clear about it. To be honest, it's always better to proactively declare than to wait until it's discovered and then make up for it.
1、 How does CRS exchange your information?
The exchange logic of CRS is actually not complicated: you open an account with an overseas financial institution → these institutions report your account information to the local tax bureau → the local tax bureau automatically transmits it to the Chinese tax bureau through the CRS system → the domestic tax bureau compares it with your declaration records.
What information is exchanged? Account balance, interest income, dividend income, insurance or annuity income, and total amount of sales transactions. Bank deposits, brokerage accounts, insurance cash value, and trusts are all within the scope of exchange. Someone wants to open an account in the name of an overseas company to avoid it - it's useless, CRS has'; Penetration Rules "; The ultimate beneficiary was still identified.
Three common misconceptions:
① " Only opened an account, no income, no need to declare; ——CRS exchanges account information and balances. As long as you are a Chinese tax resident, you have the obligation to declare overseas income, regardless of whether you have income or not.
② " If taxes have already been paid overseas, there is no need to worry domestically; ——Foreign taxes can be applied for credit, but declaration and credit are two different things.
③ " Opening an account with an overseas company will not result in exchange; ——As mentioned earlier, under the penetration rule, the information of the ultimate beneficiary is still exposed.
2、 How to calculate taxes for each of the 7 types of overseas income
The same tax rate applies to overseas income and domestic income, with the only difference being the declaration method.
Overseas salary: 3% to 45%. Merge into comprehensive income, deduct 60000 basic deductions+special surcharges, calculated at progressive tax rates.
Overseas interest rate: 20%. Interest amount multiplied by 20%, those who have already paid taxes overseas can apply for a credit.
Overseas dividend: 20%. If the dividends of the Hong Kong Stock Connect have been deducted by 20% by China Securities Depository and Clearing Corporation, there is no need to make up the payment, but it still needs to be declared.
Stock transfer (capital gains): 20%. (Selling revenue x Selling exchange rate) - (Buying cost x Buying exchange rate), difference x 20%.
Property leasing: 20%. Rent minus 20% of fees or 800 yuan per month multiplied by 20%.
Remuneration for labor services: included in comprehensive income. After the income is multiplied by (1-20%), it is included in the comprehensive income calculation.
Business/franchise rights, etc.: 5%~35%/20%. Operating income ranges from 5% to 35%, franchise rights are incorporated into comprehensive income, and incidental income is 20%.
Let's talk about a tricky point - stock transfer. The buying and selling amount should be converted into RMB using the exchange rate of each trading day. Even if the stock itself does not rise, if the exchange rate changes, the tax payable will also change accordingly. Losses also need to be declared (just fill in 0); Reporting only profits and not losses, the tax bureau has reason to suspect that you have selectively declared. In terms of exchange rate, you can use the central bank's central parity rate on December 31st of that year, without having to check the daily exchange rate one by one.
Overseas tax credit is calculated according to the; Sub items by country; To calculate: The taxes paid by country A can only be offset against country A, and interest and dividends need to be calculated separately. The credit limit refers to the taxable amount calculated according to Chinese tax law for your overseas income. The excess amount paid overseas will not be refunded, but can be carried forward for the next 5 years; Pay less, make up for the difference.
3、 The entire process of applying for personal income tax through the APP
Declaration period: March 1st to June 30th of the following year
Open "; Personal Income Tax "; APP → Login
Home → Taxation → Comprehensive Income Annual Settlement → Select Tax Year
After verifying the data obtained within the country, find the; Overseas income "; Module (searchable); Overseas income "; Entrance)
Add item by item: Select country, income item, fill in RMB amount and paid overseas tax amount
Fill in the overseas tax credit: according to "; Sub items by country; Calculation, actual credit amount=min (overseas actual tax paid, credit limit)
Upload supporting documents: bank statement, overseas tax payment certificate, transaction records
Verify all information, confirm the amount of tax payable/refundable, and submit the declaration
Take screenshots to save the declaration records, and keep all original vouchers for at least 5 years
4、 Prepare all these materials before applying
Annual statement of overseas banks (showing interest income)
Annual statement of overseas securities firms (showing dividends and capital gains)
□ Overseas payroll/income certificate+overseas tax payment certificate
Trading records of buying and selling stocks (date, amount, exchange rate)
□ Overseas real estate lease contracts and rental income records
Record the foreign exchange middle rate for each income corresponding to the date
What if I don't declare? CRS data does not match your declaration → tax inspection → supplementary tax+daily late fee of 0.05%+fine of 0.5 to 5 times. Large amounts may also involve criminal liability. If you haven't reported it for several years, it is recommended to report it as soon as possible - proactively reporting is much lighter than being caught.
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Policy basis: Personal Income Tax Law, CRS Joint Declaration Standards, Interim Measures for the Administration of Personal Income Tax Collection on Overseas Income
This article is for reference only. Enyue Finance and Taxation - Certified TSC5 level tax related service organization by the State Administration of Taxation.
Enyue Expert Core Suggestions
CRS Overseas Income Declaration - Professional breakdown of 7 types of income, calculation of national and sub item deductions, proactive compliance hedging, and the ability to make up for losses even if not reported for many years.
Author of this article: Founder
Founding Partner of Enyue Group | Senior Tax Planning Expert
With over 20 years of practical experience in financial and tax management, I have been deeply involved in the compliance architecture design of multiple companies planning to go public, and have unique insights into risk control in the digital regulatory environment.
