London Daily

Focus on the big picture.
Wednesday, Jul 23, 2025

China's American virus: China Starts Taxing Its Citizens for Global Income

China's American virus: China Starts Taxing Its Citizens for Global Income

China has started tracking down some of its citizens living abroad to collect taxes, surprising expatriates who never had to pay levies back home on overseas income. Americanizing the Chinese tax system might be one mistake too much...
State-owned enterprises operating in Hong Kong, which has one of the lowest tax rates in the world, told mainland Chinese expats recently to declare their 2019 income so they can pay taxes at home, according to the people, who asked not be named because they aren’t authorized to speak publicly on the matter. Chinese SOEs are also informing employees working in other places such as Singapore, two of the people said.

China, which charges taxes of as high as 45%, revised its income tax rules January last year to help authorities start collecting money from its citizens worldwide — similar to what the U.S. does with Americans living abroad. But Beijing only disclosed detailed instructions this year on how to file such taxes, catching many expatriates flat-footed.

The move signals the beginning of what could be a major shake-up for one of the largest expat communities in the world as some could see their tax bills soar. Though specific statistics on expats weren’t immediately available, Chinese state media have reported there are about 60 million ethnic Chinese living overseas.

There are 80,000 to 150,000 mainland Chinese working in Hong Kong, according to the South China Morning Post, which earlier reported on the issue. Chinese citizens working in Macau have also been told to start paying income taxes back home, according to the Nikkei Asian Review.

China’s State Taxation Administration didn’t immediately respond to a fax seeking comment.

The move could be a big blow for Chinese expats working in places such as Hong Kong, who’ve only had to pay a maximum of 15% of their salaries in taxes. That’s one third of mainland China’s highest tax bracket.

It’s not just paychecks. The rules also subject income from dividends and property sales to taxation back home, said Jia Zeliang, chief executive officer at wealth-planning adviser Ishtar Consulting Inc. That’s likely to force many companies to shoulder much of the extra tax burden or risk an exodus of Chinese expats, Jia said.

Though Chinese nationals have theoretically been obliged to pay taxes on their global income for many years, it hadn’t been enforced, said Jacky Chu, who heads PwC China’s global mobility services. The change could be a boon for accounting firms.

“We have seen a surge of companies asking for our advice,” Chu said. “China didn’t have such a large number of expats working overseas when the old tax legislation was drafted decades ago. That could be why many people were not entirely aware of the requirement.”
Newsletter

Related Articles

0:00
0:00
Close
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
×