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CN STA: Taxation on Offshore Insurance Income Not New Policy, No Need for Overinterpretation
2026-08-07 16:42:25 Income from Hong Kong insurance policies purchased by Mainland Chinese tax residents has been put under in the taxable scope, report said. According to the relevant provisions of the Individual Income Tax Law, Chinese tax residents are required to fulfill tax obligations on global income, and offshore insurance income also falls within the scope of taxable income, Chinese media cited an official from the relevant department of the China State Taxation Administration (STA) as saying, adding this is not a new policy, nor is it specifically targeting the Hong Kong insurance market, and there is no need for overinterpretation. The official said that income obtained by resident individuals from offshore sources, including insurance income, should be subject to individual income tax in accordance with the law. This is an internationally accepted practice and has been a fundamental principle upheld since the implementation of China's Individual Income Tax Law. The official pointed out that China taxes residents' offshore income equally in accordance with the law. Whether it is offshore insurance income or other investment income, and regardless of which country or region the income comes from, tax declarations and payments are required. Standardizing the tax administration of residents' offshore income will help prevent cross-border tax avoidance, safeguard national tax interests, and promote social fairness. ~ AASTOCKS Financial News Website: www.aastocks.com | |