HONG KONG/SINGAPORE – A growing campaign to tax offshore wealth is forcing wealthy Chinese people to rethink their trust structures and investment holdings, lawyers and advisers say, as Beijing sharpens its focus on capital outflows and rule enforcement amid growing fiscal strains. In late July, authorities overhauled rules to impose a 20% income tax on offshore trusts, while tax offices in major cities such as Beijing and Hangzhou have started to enforce taxation on returns from offshore insurance policies. Those measures have triggered a scramble among some wealthy individuals to assess their liabilities, raise cash to meet them and revamp investment holdings.
They have also fueled concern that Beijing may widen its tax crackdown and scrutiny of offshore wealth.
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