Many friends have privately asked me whether Singapore's EP is no longer useful and whether it cannot prevent the syncing of information back to China under CRS. I would like to clarify that this applies not only to Singapore but to most CRS allied countries:

1. Singapore's EP + 183 days in Singapore means that one is definitely a tax resident of Singapore, and even satisfying the 183-day requirement within two years is considered as being a tax resident. All tax-related matters do not look at the passport, but at the tax residency, limited only to CRS version 1.0.

2. In CRS version 1.0 (which actually has no version, it's just to better distinguish the changes between the old and new CRS), Singapore does not sync user information with China as long as one is a tax resident of Singapore. However, starting in 2025, China has already contacted almost all banks and securities firms globally, and any tax resident of China (including Chinese household registration, Chinese residence) must sync information. This is also a significant change in CRS 2.0.

3. In 2027, Singapore will begin implementing the CRS 2.0 version to collect information, with the first exchange in 2028. Currently, some financial managers may not be aware of this, so if you have any questions, it is best to ask a private banking manager.

4. This means that every amount transferred into a Singapore bank account will indeed be obtained by the CRS system, but the bank information collected by the CRS mainly focuses on the balance. If the account holder is a Chinese tax resident, the balance of transferred funds will be reported by the Singapore bank to the Inland Revenue Authority of Singapore (IRAS), which will then exchange it with the State Taxation Administration of China (STA).

5. Even when a Singapore tax resident is also a tax resident of China, filing taxes in both Singapore and China, the taxes for Singapore tax residents are still lower than for those without overseas tax residency.

The following will present more complex scenarios:

6. As a dual tax resident of China and Singapore, using the Singapore EP to register a CB account, the account information will be reported according to CRS and CARF rules. CB Singapore will first report the information to the Inland Revenue Authority of Singapore. Then, IRAS will automatically exchange your data with the State Taxation Administration of China, with the first exchange also in 2028, based on CRS 2.0 standards.

7. As a dual tax resident of China and Singapore, profits from purchasing US stocks in Singapore are considered capital gains and are subject to taxation in China. Singapore has no capital gains tax, and the US generally does not levy capital gains tax on non-residents, but China will impose taxes regardless of whether they are through a Singapore account.

8. The Singapore station of other exchanges follows the same process as CB.

9. If bankrupt in Singapore, complete the personal bankruptcy process in Singapore, mainly dealing with local debts and asset restructuring, but Chinese tax debts (including unpaid taxes on overseas income) are not under its jurisdiction. The Chinese tax authority can independently recover taxes through CRS and international agreements. Tax debts are often regarded as priority debts and are not exempt in bankruptcy.

Solutions:

10. Utilizing the China-Singapore Double Taxation Agreement (DTA) when paying taxes in China allows for credits for taxes already paid in Singapore (and vice versa). Income sourced from Singapore is taxed in China, but the taxes already paid in Singapore can be deducted. The DTA reduces tax rates for passive income such as dividends, interest, and royalties. Proof of residency and the DTA application form must be submitted to IRAS or STA.

11. If your Chinese tax resident status is based on household registration, moving abroad and canceling household registration is feasible. This applies to situations of immigration or settling abroad. After cancellation, you may be regarded as a non-resident taxpayer, subject to tax only on income sourced from China. If there is no household registration (already canceled), ensure that you reside in China for less than 183 days in total each year and do not have a residence in China, and avoid having close economic or family ties with China.

12. It is possible to cancel Chinese household registration without PR from other countries, but the difficulty is extremely high, and only having an EP and over 18 months of residency cannot justify cancellation. It is best to have PR status from another country when canceling household registration. Cancelling household registration will affect rights regarding social security, property ownership, bank accounts, etc., in China.

Highly discouraged usage plan:

13. Declare death in China, continue living abroad. However, it is not possible to continue updating the Chinese passport.

14. Never return to China again. Passports can be updated at the embassy.

Summary:

15. Work visas from Singapore or other countries indeed cannot serve as a means to avoid taxation in China after the CRS 2.0 rules come into effect, nor can the EP cancel Chinese tax residency, but Dubai's ten-year golden visa for buying property, Malaysia's Second Home program, and golden visas from Portugal, Spain, and Greece, as well as Thailand's elite visa, can all be attempted to apply for cancellation of Chinese tax residency.

16. If the sole purpose is to evade tax risks in China, indeed after 2028, the Singapore EP has no practical effect, but the Singapore EP remains one of the most cost-effective and nearly risk-free methods for capital inflow and outflow.