An income hidden overseas, a tax bill of 127,200 yuan. Zhejiang resident Chen unexpectedly found that his quietly obtained foreign income could not escape the big data screening of the tax department. From risk alerts to policy guidance, the tax department's 'five-step work method' pressed forward, ultimately bringing this 'disappeared' overseas income to light.
The recent case disclosed by the Zhejiang tax department reveals a glimpse into cross-border tax supervision. In the era of big data, the 'sky net' of tax supervision has quietly covered overseas income. Through intelligent analysis systems, the tax department accurately identified Chen's clues regarding foreign income, from risk alerts to policy guidance, ultimately leading the taxpayer to acknowledge tax payments and late fees amounting to 127,200 yuan.
This is not an isolated case, but a wake-up call for all taxpayers!
According to Chinese tax law, all Chinese tax residents, regardless of whether their income comes from domestic or foreign sources, must declare and pay taxes according to the law. Whether it is overseas investment income, foreign work remuneration, or cross-border freelance income, as long as you have the status of a Chinese tax resident, these incomes must be declared proactively between March 1 and June 30 of the following year.
Parents of international students, take note! Rental income generated from purchasing property overseas for your children also constitutes taxable foreign income.
Digital nomads, beware! Income received through foreign platforms for projects must be included in the annual declaration.
Cross-border investors, be cautious! The tax department can also track income generated from overseas stocks and funds.
Tax supervision is shifting from 'passive taxation' to 'active regulation'. The Zhejiang tax department has clearly stated that taxpayers found with issues will be subject to a progressive management approach of 'prompt reminders, urging corrections, and warning interviews'. Those who refuse to correct will face stricter penalties.
Tax experts urgently advise.
1. Self-inspection and cleanup: Immediately sort through all foreign bank accounts, investment platforms, and sources of income for the past three years.
2. Collect documents: Gather proof of foreign income, tax payment certificates, and relevant contract documents.
3. Supplementary declaration channel: Handle supplementary declarations through the electronic tax bureau's 'Cross-border Business' section, which can reduce certain late fees.
4. Professional guidance: Individuals with substantial foreign income should hire cross-border tax advisors for compliance planning.
Under the global trend of tax transparency, 'invisible income' has long been unable to hide. With the implementation of CRS (Common Reporting Standard) in over a hundred countries, Chinese tax authorities can automatically obtain information on residents' overseas financial accounts. Attempting to conceal foreign income is equivalent to running naked under the 'heavenly eye' of tax supervision.
As of early 2025, China has established tax information exchange mechanisms with over 100 countries. This means that your deposits in Swiss banks, profits in the U.S. stock market, and rental income from Australian properties may be reflected in the tax department's monitoring system in real-time.
Paying taxes according to the law is a basic obligation of every citizen, and foreign income is certainly not a 'lawless area'. The case of Zhejiang's Chen serves as a shocking reminder for taxpayers who entertain illusions about foreign income. Tax compliance is not a multiple-choice question, but a mandatory one. In today's increasingly intelligent tax supervision, proactive declaration is the true way to 'avoid tax'.