(Yicai) Nov. 13 -- China’s personal income tax revenue surged by almost 90 percent last month from a year earlier, as taxpayers rushed to declare and pay liabilities on income from offshore trusts before a grace period ended, putting the annual haul from the tax on track for a record high.

Revenue raised from personal income tax payments in October likely exceeded CNY290 billion (USD43.45 billion), based on that month’s spurt and other monthly figures released earlier by the finance ministry. For the first 10 months of the year, it jumped 22 percent to CNY1.64 trillion (USD245.8 billion), surpassing the whole of last year’s CNY1.62 trillion.

Last month’s spike is mainly attributable to the Oct. 31 deadline set for paying tax on previously undeclared income from offshore trusts, with owners taking the opportunity to submit filings and make payments before the cutoff date. According to data from the tax authorities, over CNY120 billion (USD18 billion) was collected in October from income earned through such trusts.

Robust capital market activity in the first half also contributed to the rapid growth in this year’s tax take from personal incomes. Securities markets gains accounted for nearly half of the overall growth in individual income tax revenue in the first six months, Wang Shiyu, chief auditor at the State Taxation Administration, noted in July.

Another boost came from refined collection policies. For instance, a policy document issued in August by the finance ministry and other government departments closed several tax loopholes exploited by business owners and senior executives.

The official data also underscored the tax burden on the wealthy, with the top 1 percent of earners accounting for more than half of the individual income tax collected, and the top decile accounting for about 90 percent of the total.

Editors: Tang Shihua, Tom Litting