China's tax agencies begin tracking citizens' overseas earnings

National and municipal tax agencies in China are increasingly demanding that citizens report their overseas earnings as authorities begin enforcing the country’s widely ignored tax on citizens’ and companies’ worldwide incomes, The New York Times reported, citing tax advisers. Municipal governments in Beijing and other major cities are contacting large local companies and telling them to provide detailed information on overseas employees’ incomes. The State Administration of Taxation in Beijing has also begun a separate campaign to curb tax evasion by Chinese companies investing abroad, with new rules taking effect on February 1 that ban a wide range of international investments deemed to be tax shelters.