TechFlow News According to Bloomberg, citing people familiar with the matter, China has begun to tax the overseas investment income of the country's super-rich. Some wealthy people in major Chinese cities have been asked to self-assess or have been asked by tax authorities to meet to assess potential taxes payable, including arrears in the past few years. Mainland investors may pay a 20% tax on investment income, and may face fines if overdue payments are involved, but the final amount can be negotiated.
The report also pointed out that mainland China implemented the Common Reporting Standard as early as 2018 to avoid tax evasion, but local regulators have pointed out from time to time that mainland residents must be taxed on global income, including investment income. Some of the targeted people have at least US$10 million in assets overseas, and others are targeted at people who own listed companies in Hong Kong and the United States.