China Intensifies Overseas Income Audits for High-Net-Worth Individuals

Facing declining revenues, Chinese tax authorities are launching a new campaign to audit foreign income earned by high-net-worth individuals. Targeting substantial foreign investments, the initiative reflects increased financial oversight amidst economic challenges. 2022 onward marks the start of this focused effort, with notices requesting self-inspections from those holding significant foreign assets (typically exceeding one million US dollars). The campaign’s impact extends to prominent cities like Beijing and Shanxi, where individuals are facing heightened scrutiny in relation to their investments.