In that case, authorities said, Fan signed an actual contract for 20 million yuan, almost $3 million, but declared only 10 million yuan in the contract submitted to tax authorities.
As a first-time offender, she will not face criminal prosecution if she pays the fine by an undisclosed deadline.
She instead paid taxes on a contract for only 10 million yuan (€1.24 million), Xinhua said.
In a letter posted on social media, Fan, 37, apologized profusely and repeatedly to the public and government.
The announcement did not disclose any details about Fan's whereabouts but did reveal that her agent was being held by officers for allegedly obstructing the investigation. "Without the Party and the state's great policies, without the love of the people, there would be no Fan Bingbing", she wrote.
She reportedly underpaid more than 255 million yuan in taxes.
According to Chinese media, the actress evaded £800,000 in taxes by signing up to a secret contract worth £2.2m for Air Strike.
"I am unworthy of the trust of the society and let down the fans who love me", she wrote.
Amazon to Raise Its Minimum U.S. Wage to $15 an Hour
The result is that our articles are reaching fewer people at a time when we need genuinely independent news more than ever. Bernie Sanders (I-VT) praised Jeff Bezos for the change, hoping it would push other major corporations to do the same.
The move ends months of speculation over one of the country's highest-profile entertainers since she disappeared from public view three months ago. In May, documents surfaced that seemed to indicate that Fan had been caught double-billing twice for the same work on a pair of as-yet-unidentified projects and paying taxes only on half of the amount she actually made.
Fan's abrupt fall from public grace has been one of the biggest news sensations in China in recent months, worrying fans and colleagues while delighting others who relished the travails of a rich celebrity.
X-Men actress and Chinese superstar Fan Bingbing has been missing since June.
"In terms of a series of punishment resolutions by the Tax Bureau, I totally accepted all of them, and will raise funds to compensate tax and penalties regardless of any obstacles".
The actress said: "For a while, due to my not understanding the relationship between benefits of the country, society, and individual, I and others took advantage of a "split contract" to avoid tax problems, and I am deeply ashamed".
In September, she came in last out of a hundred stars ranked in a state-sanctioned study on the social responsibility of Chinese, Taiwanese and Hong Kong celebrities. She has since gone on to act in Hollywood blockbusters likeX-Men: Days of Future Past.
Many companies she advertised for, including De Beers and Australian vitamin brand Swisse, have also suspended her image from their campaigns, according to the Associated Press.