This friend's private message question I think is very representative, so let’s talk about it together, stating at the outset that paying taxes as a tax resident is a responsibility that every tax resident should fulfill.

Currently, there is no specific tax for cryptocurrencies in China, meaning there is no tax specifically for declaring cryptocurrencies, but indeed, there is individual income tax in China, and China is a global taxpayer. If you are still considered a resident individual under Chinese individual income tax law, China in principle has the right to tax both your domestic and foreign income.

However, if you are a person without a domicile in China, it is necessary to consider whether you stayed in China for 183 days that year and whether you triggered the six-year continuity rule. For individuals without domicile, China’s current rules specify that if you accumulate 183 days in China but have not continuously filled 183 days in the previous six years, or if in any given year you leave the country for more than 30 days at once, then income originating from abroad and paid by foreign entities or individuals can be exempt from Chinese individual income tax.

Singapore does not have a capital gains tax. If you are not a high-frequency trader, then the profits from cryptocurrencies in Singapore are not taxable. Moreover, as I mentioned earlier, there is no tax related to cryptocurrencies in China; currently, CRS 2.0 has not fully integrated, and China is not on the CARF signing list, which means that the "automatic exchange framework specifically for crypto assets" currently does not cover China.

Thus, declaring taxes on cryptocurrency is an individual's proactive action, which is a major premise. When you need to pay taxes, and do not have enough Renminbi, if you are in Singapore, there is no need to worry, as Singapore is not a currency-controlled country and there are compliant OTC merchants. You can convert your cryptocurrency income into Singapore dollars through compliant channels, and then use your personal bank account to follow standard cross-border remittance paths, exchanging currencies according to bank and Chinese foreign exchange regulations and remitting it to China for tax payment.

Of course, since China has a $50,000 quota, if your exchange quota is within $50,000 there will definitely be no problem, or through Wise, which allows about $100,000, but if it is higher, you will need to provide proof of the source of funds, including bank statements from Singapore, asset sale records provided by exchanges, tax declaration forms, tax agency-issued tax amounts or payment notifications, remittance receipts, identification proof, etc.

The most troublesome part is indeed the asset proof, but since you sold it in Singapore, it is sufficient to provide proof from the exchange, whereas China needs to verify that your money was obtained through compliant means in Singapore. Therefore, as long as the compliance of the source of funds is proven in Singapore, the troubles on the Chinese side are greatly reduced, which is indeed very vexing.

So if you are really ready to pay taxes and the amount is relatively large, make good use of the $50,000 quota with resources around you. Other methods are even more complicated.

Actually, China is not too bad; Japan or the United States is even more troublesome.

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