China Tightens Tax Oversight On Offshore Investment Income

China has stepped up tax oversight on personal offshore investment income in recent months, including a July notice that residents must pay a 20% income tax on gains from offshore trusts and that trusts established after 2023 must be reported within three months, according to Ming Pao. DBS Hong Kong North Asia private banking head Ng Suk-yin said China has a sizeable number of high-net-worth individuals, many of whom have obtained overseas residency status and already hold assets abroad, so wealth-management demand remains. She added that clients set up trusts and family offices mainly for wealth succession planning rather than simple tax savings, and said recent regulatory news in China has not affected business.