State Taxation Administration of China Responds to New Overseas Taxation Policy: Taxation of Residents' Overseas Income According to Law, Not a New Policy

BlockBeats News, August 7th, the Chinese State Taxation Administration responded to the recent discussion on taxing Hong Kong insurance benefits, stating that Chinese tax residents are required to fulfill their tax obligations on global income in accordance with the law, and overseas insurance benefits are also within the taxable income scope. This is not a new policy and is not specifically aimed at the Hong Kong insurance market. The Taxation Administration stated that overseas insurance benefits obtained by resident individuals and other investment income should be declared and taxed in accordance with the law, and the relevant rules treat overseas income from different countries and regions equally.

Yesterday, Caixin reported that with the normalization of CRS information exchange, Chinese tax authorities can now fully access data on overseas policy dividends and cash value, gradually filling the enforcement gap. Currently, the taxation of overseas income, including insurance benefits, has begun.