China’s tax offices issue disclosure orders as offshore asset grace period ends
Local tax bureaus across China are continuing to step up oversight following the expiration of the country’s grace period for the reporting of offshore trusts last Thursday, part of an ongoing push to spur voluntary tax disclosures. Municipal tax authorities in Beijing published notices for 21 individuals on the official website last Thursday – the expiry date of the 90-day grace period –…
China’s tax offices have intensified their oversight following the end of a 90-day grace period for reporting offshore trusts last Thursday. Municipal tax authorities in Beijing issued notices to 21 individuals, requiring them to submit tax documentation related to their offshore trusts within 15 days. Earlier this month, tax authorities in Qingdao also issued a similar notice to a local taxpayer, instructing them to verify the nature of their offshore financial accounts.
Tax experts suggest that authorities may have already contacted some of the individuals mentioned in the notices. The purpose of these public notices is twofold: to establish a procedural trail for future penalties and to warn others to comply. China has been actively working to tax offshore assets this year, with individual income tax proceeds reaching 1.34 trillion yuan in the first three quarters, a 14.1% increase from the previous year.
Tax lawyers report that most taxpayers in the first batch served with tax notices have already settled their taxes, but those who haven't may be facing challenges in arranging funds or contesting the tax treatment.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
