At one time, overseas accounts were synonymous with "privacy". But under the CRS framework, financial information from more than 100 countries around the world (including China) is being exchanged automatically. YourOverseas financial accounts（Information (whether in Singapore, Hong Kong, Europe or Malaysia) is being exchanged automatically. At a time when "running around naked" has become the norm, how can we move from passive exposure toProactive planning and managementMalaysiaPersonal Tax Code (PTC)Provides a key strategic pivot point

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01 What is CRS?

First of all, we must discard any sense of chance:CRS is no longer in the future tense, but in the present tense

It operates with a clear and powerful logic:

1. Global information gathering: Financial institutions in countries participating in the CRS (including mainstream financial centers such as China, Malaysia, Singapore, Switzerland, etc.) systematically identify financial accounts of non-national tax residents.
2. Harmonized standards for reporting: Data such as information on the holders of these accounts, account balances, and investment income (e.g., interest, dividends) are reported centrally to the tax authorities in the host country.
3. Automated exchange: The tax authorities regularly exchange these data in bulk to the country of tax residency of the account holder.

(For example, if you are a tax resident of China, your overseas account information may be exchanged back to the Chinese tax authorities)

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What does that mean?
If you are inAny CRS participating countryHave financial assets (e.g., deposits, securities, investment funds, insurance with cash value) but don't have a clear, compliant tax identity to match, then:

• You have becomeThe focus of the tax authorities of both countries
• potentially vulnerableQueries from Chinese tax authorities on sources of funds, nature of income and tax payments
• remainRequired to pay large amounts of back taxes, penalties and late feessignificant risks
• Personal reputation and credit will take a serious hit

And there are two criteria for determining China's tax residency status:

The first is the criterion of domicile, i.e., household registration, family and economic interests in China;

The second is the residency criterion, which is 183 days in a tax year in China.

As long as one of these criteria is met, then you will be judged as a tax resident of China and regardless of whether you have immigrated to another country.

In this way, information about your offshore bank, securities, insurance and other financial accounts will be exchanged back automatically

How to make use of overseas identity under CRS and do tax planning in a compliant manner, you can contact our online customer service to arrange a manager to answer your questions and provide professional advice and full one-on-one service.

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02 Can you really avoid CRS by relying on your Malaysian tax ID number alone?

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A tax identification number (TIN) is just a number that means you have a registration file with the tax office.

However, whether one is a tax resident of Malaysia depends on the number of days of residence required by law (usually 183 days) or other determination criteria.

So:

• Have a tax ID number ≠ tax resident;
• Without tax residency, even if you have a tax ID number, you may still be reported by your bank or tax office as a country of origin exchange.

It's not the tax ID number, it's the "Certificate of Tax Residency."

Under the CRS framework, financial institutions will not be satisfied with a set of tax codes when conducting due diligence.

What they really value:

• Your permanent residence status;
• Proof of your residency (utility bill, address, etc.)
• As well as a more central document - the tax resident certificate

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It needs to be emphasized here thatProof of tax residency doesn't just happen.

To apply, you must prove that you have actually resided in Malaysia by providing a full copy of your passport, entry and exit records, etc.

If there is no actual record of residence, the application is unlikely to be successful at all

Therefore, the so-called "three-piece tax ID package" (tax ID document, proof of address, phone card) is not enough in front of the real financial due diligence!

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03 Compliance Path: Malaysia Second Home Visa + Tax Status + Property

There are three conditions required to be truly robust and compliant:

1. Second Home Visa: Provides a legal basis for long-term residence;
2. Proof of tax residency: subject to permanent residence and actual residency;
3. Real estate allocation: both a conduit for funds to land and excluded from the CRS exchange.

The combination of all three makes a complete closed loop.

Especially for clients with millions of dollars or more in assets:

Real estate is essential as a financial conduit and identity support

Tax ID number only, no residency, can't get proof;

Without a permanent visa, there's no way to explain "residence."

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Smaller investors, do not fantasize about the so-called "shortcuts", honest declaration is the most secure way.

If you have Malaysia personal tax number, Malaysia second home visa, Malaysia real estate and other needs, you can contact our online customer service, to arrange for specialist managers to answer questions, provide professional advice and full one-on-one service!