Amid financial tightness, the Chinese Communist authorities are attempting to bolster tax collection efforts, particularly targeting high-income individuals and businesses for tax audits to offset the fiscal shortfall. It is reported that in the first 11 months of this year, the Chinese tax authorities have dealt with over 1,800 “double high” individuals, recovering tax payments totaling 15.23 billion yuan (RMB).
According to Dai Shiyou, the Director of the Policy and Regulation Department of the National Taxation Bureau of the Chinese Communist Party, on December 8th during a regular press conference, the tax authorities have investigated 3,904 households identified as “high-risk refueling stations,” recovering 41.63 billion yuan in taxes. They have also scrutinized 1,818 individuals, including celebrities and internet influencers, flagged as “double high” individuals, recouping tax payments of 15.23 billion yuan.
As reported by the First Financial, “double high” refers to high-income and high-net-worth individuals, encompassing top-tier celebrities, internet influencers, among others, whose annual income exceeds one million yuan or have investable assets surpassing ten million yuan.
The “double high” individuals have always been a focal point of tax supervision. In recent years, the Chinese tax authorities have notably intensified their oversight of tax evasion among celebrities and internet broadcasters within the “double high” category. Recently, Chinese automotive commentator Chen Zhen, who has been banned from several social media platforms, was fined over 2.47 million yuan for tax evasion.
Apart from celebrities and internet influencers, Chinese expatriates working overseas have been instructed to declare their foreign income to the Chinese authorities this year.
According to Lian Qifeng, the Director of Tax Collection and Technology Development at the National Taxation Bureau of the Chinese Communist Party, in June of this year, the State Council issued the “Regulations on the Submission of Tax-Related Information by Internet Platform Enterprises.” Currently, over 7,000 domestic and foreign platform enterprises have complied with the obligation to submit tax-related information.
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