China is preparing to significantly expand its tax workforce next year amid intensified efforts to enforce tax compliance, particularly targeting wealthy individuals and offshore assets. According to the national civil service recruitment plan for 2027, the government intends to fill 35,591 positions, with over 67 percent—more than 24,000—dedicated to tax-related roles. This represents an increase from about 65 percent this year and 58 percent in 2025, highlighting the government’s focus on strengthening tax collection.

Most of these vacancies are at local branches of the State Taxation Administration, which manage tax collection, social security contributions, and other levies. Tax officials are seeking candidates with more diverse professional backgrounds beyond traditional fields like finance, taxation, and accounting, partly in response to structural challenges such as retirements and departures to private-sector jobs.

The recruitment surge aligns with broader government measures aimed at increasing tax revenue at a time when fiscal pressures are mounting. China’s consolidated fiscal deficit is expected to remain around 7.3 percent of GDP in 2026, only marginally reduced from last year. This fiscal strain is intensified by a prolonged slump in the property market, which has sharply reduced land sale revenues—a key source of government funding, with land sales income dropping 52 percent from its 2021 peak to 4.1 trillion yuan last year.

One prominent focus of the crackdown is offshore trusts held by wealthy Chinese investors. New policies, effective from January 1, 2023, require taxpayers to pay a 20 percent tax on the initial value of assets placed in trusts and on subsequent distributions, with a 90-day grace period for penalty-free settlements that ended on October 22. These moves aim to close loopholes and curb capital flight amid efforts to promote President Xi Jinping’s "common prosperity" goals, which seek to reduce wealth disparities.

Authorities have also taken steps against other offshore and cross-border financial activities. In May, three online brokers were fined for facilitating unlawful overseas securities trading for domestic clients. Additionally, a 20 percent tax on offshore insurance policy gains was introduced, and a longstanding tax exemption on dividends paid to foreign investors by foreign-founded companies was eliminated, harmonizing their tax rates with those of domestic investors.

Corporate tax enforcement has also intensified, with over 80 listed Chinese firms ordered to repay corporate income taxes and late fees in the first half of 2026. More than 6,600 companies have lost preferential tax status, such as the lower 15 percent rate designated for "tech enterprises," forcing them to pay the standard 25 percent corporate tax rate.

Experts note the potential for increased disputes and litigation related to trusts and wealth management arrangements as enforcement tightens. The crackdown on offshore assets may yield substantial tax revenues, with some estimates suggesting as much as US$100 billion could be collected from assets held in places like Hong Kong, though official projections remain unavailable.

This intensified tax drive reflects a strategic shift by Chinese authorities to broaden the tax base, enforce compliance more rigorously, and tap into previously underutilized revenue sources amid evolving economic and fiscal challenges.