Business · Economy · 9 hrs ago
China expands tax scrutiny of wealthy citizens’ offshore assets
China is expanding its efforts to examine wealthy citizens’ money and investments held overseas.
The campaign covers more than 1,000 billionaires and five million millionaires, according to the figures given.
New rules impose a 20% tax on some returns earned through offshore trust funds.
Some investigations reach back to transactions from 2000.
The campaign comes as China faces a property crisis and falling revenue for local governments.
It fits President Xi Jinping’s drive to redistribute wealth under the idea of “common prosperity.”
About $1.2 trillion of wealthy Chinese people’s assets is invested abroad, and the campaign’s results could affect whether the government collects more tax or prompts money to leave China.
China is expanding scrutiny of offshore assets held by more than 1,000 billionaires and five million millionaires.
New rules impose a 20% tax on some returns earned through offshore trust funds.
Some investigations cover transactions dating back to 2000.
The campaign comes amid a property crisis and falling local government revenues.
Around $1.2 trillion in wealth held by wealthy Chinese is invested overseas.
- Who
- China’s authorities are scrutinising the offshore wealth of more than 1,000 billionaires and five million millionaires.
- What
- The campaign targets overseas assets, investments and accounts, with a 20% tax on some returns earned through offshore trust funds.
- When
- Not stated. Some investigations cover transactions dating back to 2000.
- Where
- China and assets, investments and accounts held outside the country.
- Why
- The campaign comes amid a property crisis and falling local government revenues, and reflects President Xi Jinping’s push to redistribute wealth under the slogan “common prosperity.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- People targeted
- More than 1,000 billionaires and five million millionaires
- Tax rate
- 20% on some returns earned through offshore trust funds
- Investigation period
- Some transactions date back to 2000
- Overseas wealth
- About $1.2 trillion invested abroad
Sources
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