China expands tax workforce as tougher enforcement moves into spotlight

Beijing’s plan to recruit more tax officers next year is drawing attention from businesses and wealthy families as tax compliance rises up the policy agenda and authorities intensify enforcement efforts.

China’s 2027 national civil service recruitment plan includes 24,013 tax-related positions, accounting for more than 67 per cent of all vacancies, up from over 65 per cent a year earlier.

Most of the vacancies are at the State Taxation Administration’s local branches, which are recruiting staff to collect and administer taxes, social security contributions and other levies, according to the recruitment catalogue.

The national civil service examination will be held in November.

“There is the potential for an increase in disputes involving high-net-worth families and their trusts,” said Emma Holland, a partner in the trust and probate litigation team at UK disputes law firm Stewarts.

“Our team, which has experience working with clients in China, believes the changes could expose previously undisclosed trust interests, disrupt existing arrangements for managing family wealth and create new opportunities for litigation.”

Beijing regulators have rolled out tougher tax enforcement measures. In the first half of this year, at least 80 listed Chinese firms were ordered to repay corporate income taxes and late-payment fees to local authorities, according to financial data provider Wind.

Companies in the pharmaceutical, new materials, chemicals, environmental protection, agriculture and information technology sectors accounted for most of the cases.

The latest focus is offshore trusts. Earlier this week, the State Taxation Administration said taxpayers with offshore trust income must file and pay individual income tax on trust gains. A 90-day grace period applied, with no late-payment surcharges for settlements completed by the October 22 deadline.

Cai Chang, a professor at the Central University of Finance and Economics’ School of Public Finance and Taxation in Beijing, said tax administration was becoming increasingly important.

“Recruiters are now seeking candidates with more diverse backgrounds in computer science, artificial intelligence, law and public administration, rather than just finance, taxation and accounting,” Cai said.

“The tax service faces structural labour challenges. Many senior staff are retiring, while a considerable number of employees have left for private-sector positions at listed companies and law firms, triggering a notable outflow of talent from the civil service.”

He added that demand for tax officers could decline in the coming years as AI becomes more widely adopted. Many listed companies were already using big-data tools to monitor and review their own tax compliance, Cai added.