According to a (Bloomberg) report, sources recently pointed out that the Chinese government has recently begun to strictly implement tax policies targeting the overseas investment income of the country's "ultra-rich". The tax rate is as high as 20%, and some wealthy people are also required to make up for the past tax. owe taxes and face tax evasion penalties. (Previous summary: WSJ: China's economy may have peaked and will never surpass the United States as the largest economy...) (Background supplement: Mainland stocks are crazy again! Brokerage apps are so popular that they are so popular that economists suggest: Record deficits will accelerate stimulus China Economy) According to (Bloomberg) citing sources, the Chinese government has recently begun to implement tax policies targeting the overseas investment income of the country's "ultra-rich". These ultra-rich have been told in recent months that they need to conduct self-assessments. Or you have been summoned to a meeting by the tax authorities and may need to pay back taxes on your income from overseas investments in the past few years. The tax rate is as high as 20% (Bloomberg) continues to point out that the income tax on overseas investment income of these super-rich people will be as high as 20%, and some people will also face penalties for the taxes they owe, but the final amount can also be negotiated It’s a done deal. In this regard, (Bloomberg) commented that this tax policy has actually existed for a long time, but the Chinese government has not strictly implemented it in the past few years. The current actions of the Chinese authorities reflect the urgent need to expand sources of fiscal revenue as China's real estate bubble bursts and economic growth severely slows down. In addition, this policy is also in line with the "common prosperity" policy promoted by China's top leader Xi Jinping, which aims to more evenly distribute wealth in China, the world's second largest economy. China collects taxpayer information through CRS. It is worth mentioning that (Bloomberg) pointed out that among the super-rich people who have been targeted by the Chinese authorities, many have offshore assets of at least US$10 million, and there are also many listed in Hong Kong and the United States. shareholders of the company. So how will China detect the amount of their assets? (Bloomberg) In this regard, China has been automatically exchanging account information about tax-related individuals with nearly 150 jurisdictions through CRS (Common Reporting Standard) for the past six years. In this regard, multinational accounting firm Deloitte (Deloitte Touche Tohmatsu) China Vice Chairman Patrick Yip said: China already has a large amount of CRS data, and tax authorities can use this data to explore tax opportunities.The potential for personal tax audits will increase compared to corporate tax audits. Will China’s super-rich actively invest in cryptocurrencies? It is clear that the Chinese authorities’ latest tax measures will greatly undermine the confidence of China’s ultra-rich. However, some people recently analyzed on the Internet that this strict tax policy may increase the interest of wealthy Chinese in cryptocurrency in the future, because although the Chinese authorities currently have a suppressive attitude towards cryptocurrency, they have not yet clearly regulated cryptocurrency transactions. If China's richest people make profits from crypto investments, they may be able to avoid the high taxes set by the Chinese authorities. On the other hand, due to the anonymity provided by blockchain technology, if Chinese wealthy people transfer their assets to the chain or invest in digital assets such as Bitcoin, Chinese authorities will also face difficulties in detecting the amount of their assets. Related reports: China rescues housing market! Many banks lowered mortgage interest rates on October 25, reducing household expenditures by an estimated 680 billion yuan. Will China print US$283 billion in money to save A-shares? Investors are paying attention to the Ministry of Finance's "new stimulus policy" on Saturday. Chinese experts say: Expand borrowing 10 trillion yuan to stimulate the economy. Don't be afraid if you are still in the safe zone. China is rumored to impose a 20% heavy tax to hit the ultra-rich. Bitcoin will become a safe haven for funds. ? "This article was first published in BlockTempo (Dong District Dongzhi - the most influential blockchain news media).

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