Tax service providers have seen a surge in inquiries in recent months from clients with less than US$1 million ($1.3 million) in assets, a notable shift from last year’s crackdown that largely targeted individuals with at least US$10 million ($13 million). Chinese residents with offshore investments, especially in US and Hong Kong stocks, are a key focus of the tax authorities, one of the people added.
China is intensifying efforts to collect taxes on citizens’ overseas income, expanding its scrutiny to less wealthy individuals after targeting the ultra-rich last year, according to people familiar with the matter.
Officials are now scrutinizing a broad range of offshore income, including investment returns, dividends and employee stock options, said the people, asking not to be identified discussing private information. Investment gains can be taxed as much as 20%.
