China Imposes 20% Tax on Overseas Investment Income of Ultra-Wealthy š±
According to #Bloomberg , China has begun taxing overseas investment income of the countryās ultra-wealthy. Some wealthy individuals in major cities have been asked to self-assess or meet with tax authorities to evaluate potential taxes owed, including back #taxes from previous years. Mainland investors may be required to pay a 20% tax on investment income, and those with overdue payments may face penalties, though the final amounts can be negotiated.
The report also notes that China implemented the Common Reporting Standard (CRS) in 2018 to prevent tax evasion. Local regulators have emphasized that mainland residents must pay taxes on global income, including investment returns. Some of the targeted individuals have at least $10 million in #overseas assets, and others are those with publicly listed companies in Hong Kong and the United States.
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