Chinese authorities have stepped up calls for investors to declare profits from overseas operations, tightening pressure on wealthy citizens in an effort to boost fiscal revenues amid economic headwinds, the Financial Times reports.<\/p>\n
Tax agencies in Shanghai, Zhejiang, and Shandong have this year published notices on their websites requiring income declarations, while also phoning and sending personal messages to investors. This month, the campaign gained additional backing from state media.<\/p>\n
While income from domestic accounts remains exempt from taxes until 2027, the government is now targeting returns from foreign investments, which have become more attractive given the weak performance of China\u2019s domestic markets.<\/p>\n
Investors who spend more than 183 days per year in mainland China are required to pay a 20% tax on global income. Previously, authorities lacked sufficient resources for enforcement, but financial pressures have grown amid falling land sales and slowing economic growth.<\/p>\n
In 2018, China joined the international Common Reporting Standard (CRS) for automatic financial information exchange, making it much easier to track overseas accounts. This has enabled authorities to monitor investors actively trading foreign stocks through online platforms such as Futu Securities and Tiger Brokers.<\/p>\n
In June, Shanghai\u2019s tax bureau ordered investor Roger Huang to pay 20% of profits earned from trading Hong Kong stocks over the past three years. He complained that penalties for late payment were accruing daily, despite receiving no prior notice.<\/p>\n
The crackdown is driving some investors to shift assets to U.S.-based platforms outside the CRS system. Meanwhile, lawyers warn that amid a weak domestic market and rising stock performance in the U.S. and Hong Kong, capital flight will remain a serious challenge.<\/p>\n","protected":false},"featured_media":150103,"menu_order":0,"template":"","newscat":[9],"newstag":[31531,31530,31532],"issues":[],"class_list":["post-150102","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti","newstag-economyglobalmarkettechnologyindustrygeopoliticsworldmarketsbusinessnewsbusiness","newstag-ekonomikaglobalnyjrynoktehnologiyiindustriyageopolitykarynkymyrudilovinovynybiznes","newstag-konomykaglobalnjrnoktehnologyyyndustryyageopolytykarnkymyradelovenovostybyznes"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/150102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/150103"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=150102"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=150102"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=150102"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=150102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}