Bloomberg reports China tax authorities launch crackdown on ultra-rich

September 28, 2026 at 03:20 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

China's tax authorities have launched a campaign targeting ultra-wealthy individuals and large corporations to boost revenue, Bloomberg reports. The effort includes new rules on offshore trusts and specialized teams to pursue unpaid taxes. The move comes as fiscal revenue fell 1.7% in 2025 to 21.6 trillion yuan.

Key Facts

China introduced a 20% tax on offshore trusts used by wealthy families to hold assets abroad.
Fiscal revenue fell 1.7% in 2025 to 21.6 trillion yuan ($3.2 trillion), according to the Financial Times.
More than 100 listed Chinese companies faced tax recovery and penalties totaling about 7.7 billion yuan in the first half of 2026.
The State Taxation Administration reported eight major cases in jewelry, alcohol, and petroleum products, with the largest fine at 40 million yuan ($5.85 million).
Land sales revenue dropped from 8.7 trillion yuan in 2021 to 4.15 trillion yuan amid the property market crisis.

Offshore Trust Rules

China has changed rules on offshore trusts to make it harder to hide capital. A 20% tax on offshore trusts was introduced earlier this year. Transfers of property by Chinese tax residents to foreign trusts are now generally treated as deemed sales subject to a 20% capital gains tax.

Corporate Tax Enforcement

Authorities are conducting a large-scale operation to recover unpaid taxes from major local companies. Special attention is being paid to capital held by Chinese citizens in Hong Kong. The State Taxation Administration reported eight major cases in jewelry, alcohol, and petroleum products. Companies understated revenue by transferring funds to personal accounts or using shell firms to reduce tax burden. The largest fine was 40 million yuan ($5.85 million).

Fiscal Pressure

China's fiscal revenue, mainly tax-based, fell 1.7% in 2025 to 21.6 trillion yuan ($3.2 trillion), according to the Financial Times. Land sales revenue dropped from 8.7 trillion yuan in 2021 to 4.15 trillion yuan amid the property market crisis. More than 100 listed Chinese companies faced tax recovery and penalties totaling about 7.7 billion yuan in the first half of 2026.