Is it necessary to levy abandonment tax in China?

It is not impossible to give up taxes in China, because with the national tax reform of 20 18, the winners are the middle class earning wages and salaries and the small and medium-sized enterprises earning business income. The high net worth people with assets have become the target of adjustment. In order to curb wealthy immigrants, crack down on tax avoidance and prevent the outflow of assets, the government may put pressure on this group by imposing immigration tax or nationality revocation tax.

Whether it is abandonment tax or immigration tax, the tax provisions are that when a person changes from a resident taxpayer to non-resident taxpayer, all his property is regarded as being sold at a fair market price, and the resulting capital gains or losses are subject to personal income tax.

All property includes real estate, stocks, bonds, personal belongings, such as cars and so on. Of course, some countries will introduce some exemption regulations, such as large assets such as real estate, but securities such as stocks or other investments are generally not exempted.

Waiver of tax is a tax arrangement for those who give up their existing nationality. Abandoning citizenship tax can restrain wealthy immigrants to a certain extent, embody the function of tax to regulate economic development and income distribution, crack down on tax avoidance and prevent the outflow of assets. This paper studies the collection of renunciation tax, and stipulates that clearing tax is a prerequisite for renunciation of nationality. We propose to broaden the channels for tax authorities to obtain tax-related information, strengthen international tax collection and management cooperation and information exchange, improve the personal tax declaration system, and strengthen the implementation and management of tax waiver based on the construction of credit system.

Personal income tax in People's Republic of China (PRC)

Article 12 Taxpayers who cancel their domestic accounts due to emigration shall go through tax settlement before canceling their domestic accounts.

Article 34 The formats of individual income tax return, individual income tax withholding report and individual income tax payment certificate shall be uniformly formulated by the competent tax authorities of the State Council.