"Offshore Income Tax Supplement" Pursuit Period Policy Adjustment, Retroactive to 2017

According to multiple sources, significant adjustments have recently been made to mainland China’s tax policies. For offshore income of tax residents, relevant authorities are no longer limited to the previous retrospective period; the scope of the statute of limitations has been expanded, with the furthest back being traceable to 2017, significantly longer than previous standards. This policy change means that taxpayers who have earned income abroad need to reassess their tax compliance status.

Expanded statute of limitations, offshore income included in tax correction scope

The extension of the statute of limitations reflects regulatory authorities’ increased emphasis on offshore income tax reporting. Previously, tax corrections typically focused on the most recent 1 to 2 years, but the situation is different now. According to Yicai, many tax residents have already received reminders for tax correction, urging them to voluntarily report their domestic and offshore income, with offshore income becoming a key focus of inspection.

This adjustment indicates higher regulatory requirements for tax compliance. Since 2017, nearly ten years have passed, and any undeclared or incorrectly declared offshore income during this period could face tax correction. The extension of the statute of limitations means that more taxpayers’ historical tax records will be subject to review.

Starting from 2025, tax correction declarations will become a focus; self-inspection is urgent

Since 2025, tax authorities have launched a new round of self-inspection notification work. Currently, the main focus of tax correction retrospective is on income within the past three years, with 2022 and 2023 as key years, but this does not mean earlier income will be excluded. The statute of limitations can reach back to 2017, meaning that offshore income from even earlier periods is within regulatory scope.

For taxpayers who receive notices, proactive self-inspection and timely declaration are the most important measures. Voluntary reporting demonstrates a proactive compliance attitude, which often has a positive impact on subsequent tax correction processing. Many tax professionals recommend that taxpayers quickly organize all offshore income records since 2017, including salaries, investment income, dividends, and other types of income.

Taxpayers should actively respond; compliant tax correction is key

This wave of tax correction retrospective policies reflects the firm stance of regulatory authorities on tax compliance. The statute of limitations has been extended from a relatively short period to 2017, demonstrating a systematic review approach. For individuals working, investing, or doing business abroad, reviewing their tax situation has become a necessary step.

It is crucial to understand that the expansion of the tax correction retrospective period is not a punitive measure but an encouragement for taxpayers to voluntarily report and correct. Through proactive self-inspection and reporting, taxpayers can eliminate future tax risks and demonstrate respect for tax laws. It is recommended that taxpayers with offshore income consult professional tax advisors promptly to ensure all declaration data is complete and accurate, in order to adapt to this new policy environment.