Question Any tax advice for Chinese?

[Mark Yvon]

I am a Chinese living in China and don't have any passport of other countries.

I want to cash $2M crypto to US brokerages because
1. I think crypto is not safe after observing many hacks of DEX and collapse of FTX
2. One year US treasury yield is 4.8% while USDC's yield in AAVE is 2% and you need to undertake the hack risk of AAVE

I choose the US because it will not report my account to China because the US doesn't join CRS and China doesn't join FATCA. I have confirmed this with customer service of multiple brokerages, they said Chinese clients are held by their US companies and they won't automatically report my account to China unless requested.

Is there any problem with my plan? I want to be careful because Chinese tax authority may charge me 45% tax if it find my fund.

 

[Sols]

Your plan will probably work in that there is no automatic exchange of information. Requests for information would probably also be denied.

In the longer term, since you have the means, consider getting a second passport (Malta or something Caribbean). You might be able to pay for that in crypto.

 

[JackAlabama]

I am a Chinese living in China and don't have any passport of other countries.

I want to cash $2M crypto to US brokerages because
1. I think crypto is not safe after observing many hacks of DEX and collapse of FTX
2. One year US treasury yield is 4.8% while USDC's yield in AAVE is 2% and you need to undertake the hack risk of AAVE

I choose the US because it will not report my account to China because the US doesn't join CRS and China doesn't join FATCA. I have confirmed this with customer service of multiple brokerages, they said Chinese clients are held by their US companies and they won't automatically report my account to China unless requested.

Is there any problem with my plan? I want to be careful because Chinese tax authority may charge me 45% tax if it find my fund.

Id stay away from the us while having the passport you currently have. You can see what they did to Russian assets and they will do this to your nationals as well. Tensions being slowly prepared as we speak.

Bitcoin is very safe actually, learn about self custody methods (shamir secret for example).

Get a second passport first, then open the us accounts you want.
You can also move to HK, which is great for cash out to live off and since youre Chinese you can stay there.

 

[Mark Yvon]

Id stay away from the us while having the passport you currently have. You can see what they did to Russian assets and they will do this to your nationals as well. Tensions being slowly prepared as we speak.

Bitcoin is very safe actually, learn about self custody methods (shamir secret for example).

Get a second passport first, then open the us accounts you want.
You can also move to HK, which is great for cash out and since youre Chinese you can stay there.

"stay away from the us", I think most developed countries will sanction a country if the US wants to sanction it. So you can't avoid it if you want to put your money in banks or brokerages.
I realize custody methods such as shamir secret and cold wallet but I don't consider crypto now because
- I only want to hold stablecoins which can also be sanctioned by the US
- Cold wallet is easy to lose. Hot wallet is easy to be stolen, Chinese police or border inspection may check your phone and computer which makes your hot wallet be more dangerous
- I will lose risk free interest if I buy US treasury instead

Second passport.
- I think the US may sanction by birth place instead of nationality in the future if many Russians buy passport to avoid sanction
- I have to give up one passport if Chinese government find I have a second passport.

Move to HK.
- Mainland Chinese can only stay in HK in long time if they have a job there. HK will also be sanctioned if China will be sanctioned.
- I consider moving to SG instead but I need to find a job there and stay 183 days to become a tax resident. I am hesitate whether it is worthwhile to do this. I don't like crowded environment in SG.

 

[JackAlabama]

"stay away from the us", I think most developed countries will sanction a country if the US wants to sanction it. So you can't avoid it if you want to put your money in banks or brokerages.
I realize custody methods such as shamir secret and cold wallet but I don't consider crypto now because
- I only want to hold stablecoins which can also be sanctioned by the US
- Cold wallet is easy to lose. Hot wallet is easy to be stolen, Chinese police or border inspection may check your phone and computer which makes your hot wallet be more dangerous
- I will lose risk free interest if I buy US treasury instead

Second passport.
- I think the US may sanction by birth place instead of nationality in the future if many Russians buy passport to avoid sanction
- I have to give up one passport if Chinese government find I have a second passport.

Move to HK.
- Mainland Chinese can only stay in HK in long time if they have a job there. HK will also be sanctioned if China will be sanctioned.
- I consider moving to SG instead but I need to find a job there and stay 183 days to become a tax resident. I am hesitate whether it is worthwhile to do this. I don't like crowded environment in SG.

Us assets and its income are not risk free. They can be potentially be very expensive.

Yes, you need to go to places which are less likely to want to put sanctions. And yes, as it looks right now, most "developed" countries will follow their colonial master us, (until, if, when?) things change.

Easy way to fulfil that job requirement if that is the only way holding you back

 

[Jbb1]

The US is not safe especially if you are from a country that doesn't follow their interests and foreign policy.

 

[Martin Everson]

Id stay away from the us while having the passport you currently have. You can see what they did to Russian assets and they will do this to your nationals as well. Tensions being slowly prepared as we speak.

Exactly.

We already seen U.S delist some Chinese companies from U.S exchanges. Why walk into the lions mouth with $2m and waving a Chinese passport. He has to learn quickly from what happened to Russians. The US/China relationship is not in a good place at this moment. I 100% would not keep any assets in US broker to avoid CRS.

Three Chinese telecom companies delisted by NYSE​

Three Chinese telecom companies to be delisted by NYSE

Three Chinese telecommunications companies said on Friday they will be delisted by the New York Stock Exchange in line with U.S. investment restrictions dating to last year.

www.reuters.com

SEC Chair: Roughly 250 Chinese companies could be delisted 'as early as 2024'​

SEC Chair: Roughly 250 Chinese companies could be delisted 'as early as 2024'

SEC chair Gary Gensler offered an update on the push to delist Chinese companies from U.S. stock exchanges if they don't open their books.

finance.yahoo.com

 

[JimBeam]

Do you plan to live in China after 2M cashout?
If yes what do you plan to do with the money?

 

[Martin Everson]

Tensions are still brewing over these Chinese balloons now.....lol. How will US respond? This is why people are saying avoid US as Chinese citizen and resident. Having assets frozen is no fun.