China has started tracking down some of its citizens living abroad to collect taxes, the South China Morning Post reported on July 10, citing unnamed sources, following a revision to tax rules designed to make it easier for Beijing to collect income earned by Chinese expatriates.
State-owned enterprises in Hong Kong told employees holding mainland passports to declare their 2019 income to pay taxes on it at home, according to the report. China’s highest tax rate is 45%, applied to those earning more than 960,000 yuan per year, whereas Hong Kong’s rate is capped at 15%.
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