Opening a foreign savings account in China comes with some risks, however, it can be done with little problems if you do it correctly. Offshore banking requires some know-how and a basic understanding of exchange rates, lender requirements and how to insure your money. Instructions for foreign savings account opening in China are as follows.
1. Find a reputable bank
There are many offshore banks out there and some of them are better than others. Some are also known for charging extremely high fees. Look for banks that welcome U.S. dollars (USD). These are the firms that have a fee and rates-of-return structure already set to accommodate American currency. Also, look for banks that are insured in some way. Unlike U.S. banks that are insured by the FDIC, most foreign banks are not insured by their governments. It is wise, therefore, to secure some form of depository insurance before you open an account if you cannot locate an insured bank.
2. Meet the bank's requirements
Most foreign banks will require you to meet a depository minimum, usually at least $10,000 USD. You may be required to submit an agreement showing evidence of your obligation to pay foreign currencies. This means you must agree to deposit money in your account in whatever currency the lender calls for and pay the exchange rate. These requirements will vary from bank to bank and according to the requirements of each jurisdiction.
3. Wire your deposit
The best option to make deposits is to used your home bank's wiring service. Fees will be likely lower than those charged by traditional third party wiring services such as Western Union.
4. Be prepared to get audited
It is common for foreign bank accounts to raise red flags with the IRS. When you complete your income tax returns, you will likely be required to disclose money you deposit into your foreign account, especially if deposits come from your regular, personal income. It is, therefore, wise to form a separate corporation and make deposits and withdrawals in the name of that entity. Although you will still be required to report the deposits, forming a LLC or corporation will make possible audits more self-explanatory and could ease your personal tax liabilities.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
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