Core Insights - A revolution in wealth transparency has begun as 157 countries and regions' financial institutions start automatic exchange of account information under the Common Reporting Standard (CRS) led by OECD, aiming to combat cross-border tax evasion [1] Mechanism Analysis - The CRS system determines "tax residency" based on actual economic connections rather than nationality, with specific criteria including residence time, family ties, economic focus, and identity connections [4] - High-net-worth individuals mistakenly believe that holding an overseas passport or tax number can shield them from being classified as Chinese tax residents, which is a dangerous misconception [4] Compliance Strategies - Financial institutions covered by CRS include banks, securities firms, and insurance companies, with specific scenarios that may trigger information exchange if domestic accounts are registered with Chinese ID or contain mainland address information [5][7] - Strategies for compliance include updating domestic account information to reflect non-resident status, unbinding local payment methods, and optimizing asset structures through family trusts or offshore companies [10] Asset Information Reconstruction - The importance of a comprehensive identity planning strategy is emphasized, as a single identity cannot address complex tax scenarios in the era of CRS transparency [9] - The timeline for overseas income declaration is set from March 1 to June 30 each year, with penalties for late submission including fines and potential criminal liability [10] Risk Management - The need for professional intervention from tax advisors and immigration lawyers to create a coordinated "identity-asset" linkage plan is highlighted [10] - Utilizing tax treaties to resolve dual residency disputes and avoid double taxation is recommended [8]