Wealth Manager Says Mainland Tax Rule Spurs Hong Kong Residency Queries

Wealth management firm Sun Life Group Chief Operating Officer Yan Chi-kit said a July mainland rule now taxes gains from the establishment, continuation and termination of offshore trusts held by mainland tax residents at a 20% personal income tax rate, according to Ming Pao. Yan said he has not seen clients redeem trust assets because of the rule, but more clients are asking how to obtain Hong Kong tax resident status. He added that some clients who previously only kept assets in Hong Kong are now planning to move to the city themselves, which he said could bring both wealth and talent to Hong Kong.