China to intensify tax evasion crackdown for high-risk groups

China's top taxation authority will launch a joint special operation this year to intensify its crackdown on tax-related crimes, with a particular focus on high-risk groups including celebrities, livestreamers, and sectors such as medical aesthetics and jewelry.

The State Taxation Administration (STA) has announced that this month's regular joint meeting involving eight government departments will work on coordinating the special operation as well as improving the efficiency of investigations and penalties for tax offenses.

The upcoming campaign will target illegal activities such as illicit invoicing practices, tax evasion by celebrities and internet influencers, and irregularities in the medical aesthetics and gold and jewelry sectors.

Tax authorities worked to significantly strengthen tax supervision and inspection in 2025, with a focus on high-risk industries.

Last year, the STA investigated 4,223 high-risk individuals involved in equity transfers, entertainment and livestreaming, recovering 7.1 billion yuan ($1.03 billion) in unpaid taxes and fines, according to Yu Haichun, a first-class inspector with the administration's Inspection Bureau.

Efforts to regulate corporate tax compliance also yielded substantial results. The STA inspected 5,006 refined oil enterprises, including gas stations, recovering 7.5 billion yuan in 2025. It also investigated 4,865 companies for fraudulently claiming or illegally enjoying tax incentives, retrieving 19 billion yuan.

Inspections of 76,000 enterprises suspected of false invoicing and tax fraud led to the identification of 3.324 million fake value-added tax (VAT) invoices and the uncovering of over 10 billion yuan in fraudulent and irregular export tax rebates.

Yu insists the taxation department will maintain a tough stance on tax violations by high-risk individuals and crack down on illegal and irregular practices by tax intermediaries.

These efforts aim to foster a fair business environment and promote the standardized, healthy and long-term development of related industries, the inspector added.