China: AEOI guidance | KPMG | GLOBAL
Share with your friends

China: AEOI guidance, due diligence and financial accounts of non-residents

China: AEOI guidance

China’s tax authorities issued draft guidance measures setting forth the principles and procedures for Chinese financial institutions to apply in identifying and collecting the financial accounts of non-residents for purposes of the automatic exchange of financial information in tax matters (AEOI) standard.


Related content

The State Administration of Taxation circulated the draft guidance—known in English as “Measures on the due diligence of non-resident financial account information in tax matters”—for purposes of obtaining comments from the public. The draft guidance measures have seven sections, and 43 clauses that define certain terms (such as “financial institution,” “financial asset,” “financial account,” “non-resident financial account,” and so forth). Other items included in the draft guidance measures provide a timetable and the requirements for due diligence to be conducted by financial institutions with respect to financial accounts. Information collected by these financial institutions will be transmitted to China’s State Administration of Taxation which then will, in turn, exchange that information with the competent tax authorities in the jurisdiction where the account holder is a tax resident.

The main goal of the draft guidance measures is to set out the principles and procedures for financial institutions to follow in identifying non-resident accounts and in the collection of the related financial information.  The final guidance measures are expected to be effective 1 January 2017 once final rules are released. 


Read a November 2016 report prepared by the KPMG member firm in China: Public Consultation for the Draft Measures on the Due Diligence of Non-resident Financial Account Information in Tax Matters

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal