China plans to roll out Fatca
China has decided to join the likes of the US and tax its citizens living and working abroad, forming part of a crackdown on tax evasion by individuals and companies.
China has had its own version of the Foreign Account Tax Compliance Act (Fatca) since 1993 when Chinese officials visited the US for tax advice.The New York Times reported that Chinese officials are now planning to implement these rules more broadly. According to the regulation, Chinese citizens need to pay tax on the income they earn worldwide not just in China.
According to The New York Times, the government of Guangzhou has asked executives from 150 of the largest corporations that are based in the region to gather for a meeting on 28 January to discuss the tax obligations of their overseas employees.
