China To Ratchet Up International Tax Enforcement

by Mary Swire, Tax-News.com, Hong Kong

10 January 2006

China's State Administration of Taxation (SAT) will intensify its efforts to crack down on tax evasion this year and will concentrate its efforts on large taxpayers and international taxation, according to SAT's Deputy Director Wang Li.

Wang was reported by Chinanews as stating that SAT will focus on improving administration and enforcement in the areas of international and foreign-related tax and will strive to strengthen cooperation with foreign institutions and tax administrators.

Wang also directed the tax authorities at all levels to carry out more assessments and audits on foreign enterprises and revealed that SAT will seek to integrate the administration of key taxpayers at the local level, while also establishing more effective monitoring systems for key foreign corporate taxpayers.

SAT's push to collect more tax next comes as recently-released figures show that annual revenues exceeded 3 trillion yuan (US$380 billion) for the first time.

Foreign-related tax revenue increased by 19.1% to 547.5 billion yuan (US$67.5 billion) in the first ten months of 2005.

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