Chinese authorities have stepped up calls on investors to pay taxes on their global gains, forcing wealthy individuals to rethink their trading strategy as Beijing tries to fill its coffers to counter economic pressures.
Tax authorities in major economic hubs such as Shanghai, Zhejiang, and Shandong this year issued calls on their websites for investors to declare their taxes, while also calling and messaging individuals personally. Officials this month escalated the campaign with a big state media push.
“There is no exemption for direct stock trading income from overseas,” said the central bank-backed Financial News. “Paying taxes according to the law is a duty for every citizen?.?.?.?in serious violations, they may be investigated by the tax department and face penalties.”