High-income earners required to report investment proceeds

By Lin Guan (chinadaily.com.cn)
Updated: 2007-11-16 17:28

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The State Administration of Taxation yesterday announced the revised declaration form of personal income taxes for high-income taxpayers, effective as of January 1, 2008.

Those with an annual income of over 120,000 yuan (US$16,168) are now required to report their gains from stock markets and real estate.

The 2006 version of tax declaration included vague requirements that eligible taxpayers report incomes from stock or house sales. This latest version, however, introduces two columns for earnings both from stock and house trading. It also mandates private business owners fill in their businesses’ names and codes.

An expert from the Chinese Academy of Social Sciences said although some business owners are very rich, their businesses reimburse most of their expenses, thus reducing their paycheck to below 120,000 yuan. The new version will allow the administration to keep a close eye on such cases.

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