The PRC undertakes to exchange the taxrelated information on financial accounts of non-residents with foreign countries for the first time on September 2018. Pursuant to the schedule, domestic financial institutions will operate the due diligence as per the “standards” from January 1, 2017, identify non-resident’s accounts and accounts of enterprises and collect and report accountrelated information which will be exchanged by the SAT with the competent tax authorities of other countries (regions) regularly.

The Administrative Measures, comprised of 7 chapters, 43 articles and 3 schedules, mainly specify the principles and procedures for domestic financial institutions to identify nonresidents' accounts and collect relevant information, including the interpretations to basic definitions, due diligence procedures applicable to newly created accounts and existing accounts, the scope of financial accounts for which financial institutions without the need of engaging in due diligence, scope of information that shall be collected and reported by financial institutions, and sanctions imposed on any financial institution or client in breach of laws or regulations.