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 clients︀ are held by their US companies and they won't automatically report my account to China︁ unless requested.

Is there any problem with my plan? I want to be careful because︂ 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]

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

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

Get a second︇ 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 can︉ stay there.

 

[Mark Yvon]

"stay away from the us", I think most developed countries will sanction a country if︀ the US wants to sanction it. So you can't avoid it if you want to︁ put your money in banks or brokerages.
I realize custody methods such as shamir secret︂ and cold wallet but I don't consider crypto now because
- I only want to︃ hold stablecoins which can also be sanctioned by the US
- Cold wallet is easy︄ to lose. Hot wallet is easy to be stolen, Chinese police or border inspection may︅ check your phone and computer which makes your hot wallet be more dangerous
- I︆ 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 the︇ future if many Russians buy passport to avoid sanction
- I have to give up︈ 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 job︉ there. HK will also be sanctioned if China will be sanctioned.
- I consider moving︊ to SG instead but I need to find a job there and stay 183 days︋ to become a tax resident. I am hesitate whether it is worthwhile to do this.︌ I don't like crowded environment in SG.

 

[JackAlabama]

Us assets︆ 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 master︈ us, (until, if, when?) things change.

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

 

[Clank]

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

 

[Martin Everson]

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​

https://www.reuters.com/business/me...com-companies-be-delisted-by-nyse-2021-05-07/

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

https://finance.yahoo.com/news/sec-...d-be-delisted-as-early-as-2024-122037497.html

 

[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.