Accompanied by the rapid development of China's economy, the growth of per capita disposable income of China's residents has entered the fast lane, and at the same time, China's Gini coefficient has risen instead of falling. It is generally believed that when the Gini coefficient reaches above 0.5, it indicates a wide income gap. According to the National Bureau of Statistics data, in 2022, China's Gini coefficient has reached as high as 0.467, which reflects the large gap between the rich and the poor of China's residents. From a tax perspective, the current personal income tax system fails to give full play to the regulatory role of income redistribution, and there is insufficient regulation of personal income tax for high net worth individuals. The 20th CPC Central Committee pointed out that it is necessary to “improve the personal income tax system, standardize the order of income distribution, regulate the mechanism of wealth accumulation, protect legitimate income, regulate excessive income and outlaw illegal income”, and the 3rd Plenary Session of the 20th CPC Central Committee pointed out that it is necessary to “improve the direct tax system, perfect the combination of comprehensive and categorized personal income tax system, regulate the business income tax system, improve the business income tax system, improve the business tax system, and improve the tax system. The Third Plenary Session of the 20th CPC Central Committee pointed out the need to “improve the direct tax system, perfect the comprehensive and categorical individual income tax system, standardize the tax policies on business income, capital income and property income, and implement uniform taxation on labor income”. On the international front, the G20 Declaration also proposes to ensure effective taxation of ultra-high-net-worth people. Under the double pressure at home and abroad, China is bound to further deepen the reform of personal income tax and give full play to the role of tax regulation, so as to gradually narrow the gap between the rich and the poor. In addition, at the level of tax supervision, tax authorities will also make full use of the function of tax big data analysis to strengthen the tax supervision of HNWIs, and accurately crack down on the evasion of individual income tax by means of converting the nature of income, etc., so as to promote the formation of a set of normalized, standardized and institutionalized system for individual income tax supervision, and make tax compliance for HNWIs a necessity.

Based on this, Hwuason Law Firm has prepared the HNWI Tax Compliance Report (2025). Through observing the tax regulatory situation of HNWIs in 2024, analyzing and researching the newly introduced policies related to individual income tax, focusing on the tax-related cases in the seven major areas of HNWIs in 2024, and summarizing the common tax-related risks faced by HNWIs and their manifestations, the report aims to put forward effective, targeted and feasible suggestions on the prevention and response to the tax risks, and provide useful guidance on the tax compliance of HNWIs.

Click to download:《Tax Compliance Report for High Net Worth Individuals 》(2025)