China plans to share information on residents’ financial investments with 100 other countries in a bid to clamp down on tax evasion.
According to Bloomberg, the Chinese tax agency began the information exchange earlier this month. The move is part of the country’s move to comply with the Common Reporting Standard, an international agreement on sharing tax data that is backed by the Organisation for Economic Cooperation and Development.
Chinese officials are determined to overhaul the country’s income tax system, which places a heavier burden on wage earners than those with investment incomes as the latter is harder to monitor. Personal income tax codes have already been revised, which means that foreigners living in China for 183 days or more will now be taxed on both their onshore and offshore income.
As part of ongoing measures to bolster disposable incomes and boost the economy, the Chinese Government also recently increased the tax-free income threshold and raised deductibles.
Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.
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China plans to share information on residents’ financial investments with 100 other countries in a bid to clamp down on tax evasion.
According to Bloomberg, the Chinese tax agency began the information exchange earlier this month. The move is part of the country’s move to comply with the Common Reporting Standard, an international agreement on sharing tax data that is backed by the Organisation for Economic Cooperation and Development.
Chinese officials are determined to overhaul the country’s income tax system, which places a heavier burden on wage earners than those with investment incomes as the latter is harder to monitor. Personal income tax codes have already been revised, which means that foreigners living in China for 183 days or more will now be taxed on both their onshore and offshore income.
As part of ongoing measures to bolster disposable incomes and boost the economy, the Chinese Government also recently increased the tax-free income threshold and raised deductibles.
Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.
OTHER ARTICLES THAT MAY INTEREST YOU
Expats in China: Deciphering the rules on individual income tax
Understanding marriage leave in China
Z and M visa issues: Seven things to be aware of when employing foreign staff in China
