Beijing says 20% offshore insurance tax not new – and does not target Hong Kong
Beijing urged the market not to overreact to the policy – which it stressed was not new – after reports of the tax triggered a sell-off in Hong Kong China’s State Taxation Administration (STA) on Friday clarified that the 20 per cent personal income tax imposed on gains from offshore insurance policies was not a new policy – and was not specifically targeting the Hong Kong insurance industry. The STA urged the market not to overreact to the policy, according to an unnamed official quoted by Shanghai-based digital media outlet The Paper on Friday. The STA official said mainland tax residents had always had the duty to pay tax on all gains they received globally – including dividends and other returns arising from their overseas insurance policies – in line with international practices. “This was not a new policy and was also not a policy targeting the Hong Kong insurance market,” the official told The Paper, adding that taxes also applied to “a lot of items other than insurance policies”. “All overseas insurance gains or other investment earnings, regardless of which countries or jurisdictions they come from, should be reported for tax filing and made according to the rules.”
