Tax and control inspections forcing investors to revoke capital.
Chinese authorities have intensified calls for investors to express income from foreign operations, increasing pressure on wealthy citizens in an attempt to increase budget revenues against the background of economic difficulties. About this writes financial times on Sunday, August 17th.
Shanghai, Zhejian and Shandun tax authorities have published messages on sites demanding revenue reports this year, as well as called and sent personal messages to investors. This month, the campaign is supported by state media.
While income from internal accounts has been exempted from taxes to 2027, the government is seeking to focus on income from foreign investments, which has become more attractive -behind the backyard of the weak dynamics of Chinese markets.
Investors who spend more than 183 days a year in Mainland China are required to pay 20% of the global income tax. Earlier, the authorities did not have enough resources for control, but now financial pressure has increased due to the collapse of land sales and the slowdown in the economy.
In 2018, China joined the International System of Automatic CRS financial information, which greatly simplified monitoring of overseas accounts. This makes it possible to monitor investors who are actively selling foreign promotions through online platforms, in particular Futu Securities and Tiger Brokers.
In June, the Shanghai Tax Administration demanded that Roger Juan pay 20% of income received from the trade in Hong Kong for the past three years. He complains that the delay in the fine will be charged every day, despite the lack of an initial notice.
The strict control forces of the investors are noted to move the property to American platforms not included in the CRS system.
In this regard, warning lawyers with a weak domestic market and growing up in the US and Hong Kong exchange, the capital flowing will remain a serious challenge.
Earlier, China announced the expansion of the policy of zero tariffs for importing goods from all the least developed countries of the world, related to diplomatic in Beijing.
China acts coincides with the introduction of duties against the United States
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.