Exclusive: China Widens Tax Net to Offshore Insurance

Chinese mainland tax authorities have started levying personal income tax on the returns of offshore insurance policies, closing a longstanding regulatory loophole as global financial data sharing improves, Caixin has learned.

Early enforcement cases in Beijing and Hangzhou show authorities applying a 20% tax rate to returns from Hong Kong policies, tax lawyers and insurance insiders told Caixin. The levies target dividend payouts and interest earned on prepaid premiums.