TechFlow news, according to Bloomberg citing sources familiar with the matter, China has begun taxing overseas investment gains of its super-rich. In major Chinese cities, some wealthy individuals have been asked to self-assess or summoned by tax authorities for meetings to evaluate potential tax liabilities, including unpaid taxes from previous years. Mainland investors may face a 20% tax on investment gains, and those with overdue payments could be subject to fines, although final amounts may be negotiable.
The report also notes that mainland China implemented the Common Reporting Standard (CRS) as early as 2018 to prevent tax avoidance. However, regulators have repeatedly emphasized that residents are required to pay taxes on global income, including investment gains. Some of those targeted hold at least $10 million in overseas assets, while others are individuals with listed companies in Hong Kong and the United States.
