This question is not quite right, but I understand it is likely asking whether withdrawing USD from Binance will trigger overseas income tax reporting.

From my understanding, this is actually a collection of many issues. First, the U.S. and China do not have CRS (Common Reporting Standard), meaning that whether you transfer money from Binance or any other exchange to your bank in the U.S., even if you opened the account with a Chinese passport, there is no CRS-related reporting (we are only discussing CRS here).

Secondly, if you transfer this money to Singapore or another non-Chinese territory, you first need to see if there is a CRS exchange with China. If there is, the next step is to determine your personal tax residency.

For example, if you are a tax resident of Singapore (or the local area), then the information before 2026 will not be synchronized. After 2026, China has already communicated with overseas banks, and any information from accounts opened with a Chinese passport must be reported back to China. Currently, some banks have already implemented this, and some private banking clients may have about a one-year grace period.

If you transfer money to a bank in Hong Kong, even if you are a tax resident of Hong Kong, it will be recorded, but it may not necessarily be exchanged. If you are not a tax resident of Hong Kong, then it will definitely be exchanged with the mainland. Currently, the CRS is basically just about balances, but CRS 2.0 will gradually take effect starting in 2027, at which point it will involve more detailed information, not just balances.

If the funds enter a bank in mainland China directly from overseas, there is nothing more to say; it will definitely be recorded, and there is no question of whether it will be exchanged or not.

CRS does not necessarily mean you will have to pay taxes; it is about understanding the income of overseas Chinese and determining whether you need to pay additional taxes in China based on your income. For example, if you are a tax resident of Singapore and have already paid taxes there, your tax situation in China will depend on whether your income after deducting Singapore taxes still meets the tax conditions in China. If it does, you will need to pay additional taxes; if it does not, you can avoid paying.

The same principle applies to stock trading. However, currently, China calculates taxes annually, and losses do not carry over to the next year. Any gains within a year are taxable. For instance, if you have $100,000 in the first year and then lose it down to $50,000 in the second year, you will not owe taxes. But if in the third year it increases to $80,000, you will owe taxes on the $30,000 gain. In the fourth year, if you lose down to $10,000, you will not owe taxes, but in the fifth year, if you miraculously rise back to $100,000, you will owe taxes on the $90,000.

In summary, previously, being a tax resident was paramount, but starting in 2027, at least for China, having a passport will take precedence over tax residency, unless you have changed your passport; otherwise, China will have long-arm jurisdiction over you.

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