ECONOMY

China Tax Enforcement Drives Surge in Back-Tax Payments

Published: Jun. 3, 2026 5:38 p.m. GMT+8

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As China completed the 2025 corporate income tax settlement, listed companies have reported a surge in back-tax payments.

Between May 29 and June 1, eight Shanghai- and Shenzhen-listed firms reported more than 400 million yuan ($59 million) in combined back taxes and late fees.

So far this year, 69 Chinese mainland-listed companies have disclosed more than 4.9 billion yuan ($675.9 million) in back taxes, late fees and fines, a sharp rise from single-digit company counts in the same period of 2024 and 2025.

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69 Chinese listed firms disclosed over 4.9 billion yuan in back taxes, late fees, and fines so far in 2025, a sharp rise from 2024.
Eight firms reported over 400 million yuan in combined back taxes and late fees between May 29 and June 1.
Most cases stemmed from company self-inspections amid tighter scrutiny on tax incentives, especially high-tech enterprise status.

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What Happened When

2024 and 2025 same period：: Single-digit company counts of back-tax disclosures.

2025：: Tighter scrutiny of tax incentive eligibility began, particularly for high-tech enterprise status, VAT refunds, and regional development policies.

2025 completed：: China completed the 2025 corporate income tax settlement, leading to a surge in back-tax payments by listed companies.

As of 2026：: 69 Chinese mainland-listed companies disclosed over 4.9 billion yuan in back taxes, late fees, and fines.

Between May 29 and June 1, 2026：: Eight Shanghai- and Shenzhen-listed firms reported over 400 million yuan in combined back taxes and late fees.

AI generated, for reference only

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