China’s Wealthy Investors Reassess Offshore Trusts Amid Tax Crackdown

A growing campaign in China to tax offshore wealth is prompting wealthy Chinese individuals to review their trust structures and investment portfolios. Beijing’s recent rule changes include a 20% income tax on offshore trusts and taxation on returns from offshore insurance policies in cities like Beijing and Hangzhou. This has led to a rush among the affluent to evaluate their tax liabilities, liquidate assets, and adjust their investments, amid concerns over potential widening of the tax crackdown and scrutiny of offshore wealth. Consulting group BCG reported that mainland Chinese ultra-high-net-worth individuals hold up to $1.2 trillion in capital in markets…