Common Reporting Standard

Hi and welcome to the Forum.

The Common Reporting Standard is an intergovernmental financial account system designed to help prevent tax fraud across the world; it was introduced by all OECD members in 2014.  Your Forum information tells me you're from Hong Kong, so the Dutch Government will disclose to the Chinese Government your financial details and the Chinese Government will respond in kind.

Where you are assessed for taxes is largely dependent on where you are deemed a resident for more than 183 days in any single tax year.  There has been a tax treaty in place between China and the Netherlands since 2014, you can read about it here (link).  Tax treaties in general are designed around business matters and pensions, plus any other specific issues the 2 countries may have.

You've been in the Netherlands since 2018, so will have been assessed by the Belastingdienst on your worldwide income since that date, your Dutch bank details are disclosed to the Belastingdienst every year.

To answer your specific questions:

• Is it mandatory - we had to complete it, so yes.
• The consequences?  You should not be assessed twice on the same money in the same tax year.

If you have any issues that you think may cause you problems in the Netherlands (like undisclosed worldwide income), I strongly recommend you go and speak to a Dutch tax adviser and try and sort it out before you are found out, nobody on this Forum is qualified to help you.

I hope this helps.

Cynic

Expat Team