China Widens Offshore-Income Tax Hunt Using Big Data

China offshore income tax enforcement is being stepped up as authorities seek to shore up strained public finances by targeting undeclared overseas income, Bloomberg News reported.

Tax officials in multiple cities have contacted individuals identified through “big data” analysis and asked them to self-declare offshore income for 2022–2024, calculating back taxes typically at a 20% rate on capital gains and dividends, plus late-payment charges.

A new rule due in March would allow authorities to publicly name taxpayers with overdue liabilities, including through media disclosures.

While offshore holdings are difficult to quantify, Bloomberg Intelligence estimates around USD940bn of “hot money” flowed out of China in the first 11 months of 2025, underscoring the scale of potential tax exposure.