BEIJING: China’s tax officials are now demanding Chinese citizens doing business overseas to report how much money they earn outside of China. The regulation that imposes taxes on income derived from overseas businesses has long been ignored but tax agencies are now quietly beginning to enforce the law. This after the authorities found out that the level of compliance among Chinese nationals overseas has been relatively low.
The State Administration of Taxation to have started a separate campaign to curb tax evasion by Chinese companies making overseas investments. Starting 1 February, a new rule will ban a range of international investments deemed to be tax shelters.
