China’s individual income tax revenue grew 11.5 per cent in 2025, significantly outpacing growth rates for value-added tax, corporate income tax, and consumption tax, according to Ministry of Finance data. Analysts attribute this surge primarily to stricter enforcement and a targeted crackdown on unreported foreign income, which has emerged as a key driver of revenue growth.
Recent cases publicized by Chinese tax authorities revealed substantial amounts of unreported overseas earnings, with back-tax payments ranging from 1.7 million yuan (approximately $234,000) to 6.987 million yuan (approximately $962,000). Experts note that since 2017, China has participated in the Common Reporting Standard for tax purposes, enabling authorities to systematically track citizens’ overseas financial accounts.
Beginning in late 2024 and continuing through 2025, numerous individuals with foreign income received notices from tax departments requiring self-examination or audits. Tax bureaus in Hubei, Shandong, Zhejiang, and Shanghai simultaneously announced cases involving unreported overseas income. Late last year, authorities urged residents to review their foreign earnings from the past three years and file proper declarations, warning that non-compliance would result in tax collection enforcement.
This intensified scrutiny comes amid China’s ongoing economic slowdown and mounting fiscal pressure on local governments. Experts predict that enforcement will strengthen further this year. Last year’s efforts primarily relied on notifications and voluntary reporting, with much of the data and declarations remaining incomplete and imprecise. As tax authorities acquire more comprehensive data and develop systematic methodologies, analysts expect increasing numbers of people will take overseas income reporting obligations more seriously. The enhanced enforcement represents a significant shift in China’s approach to capturing tax revenue from citizens’ global earnings.
Source: Central News Agency (Taiwan), February 9, 2026
https://www.cna.com.tw/news/acn/202602090108.aspx