China reports 160 billion yuan in offshore trust tax declarations
Chinese taxpayers declared over 160 billion yuan (US$23.97 billion) in taxes on offshore trust income by an October deadline, with more than 120 billion yuan collected in October alone. Authorities said the policy transition concluded smoothly with active taxpayer cooperation.
Chinese taxpayers have declared more than 160 billion yuan (US$23.97 billion) in taxes on offshore trust income, the official Xinhua news agency reported on Wednesday, as the country tightens scrutiny of capital outflows and rule enforcement.
In late July, Beijing set an October 22 deadline for the declaration of offshore trust income, with a tax of 20 per cent to be imposed on related profits, triggering a scramble among wealthy Chinese individuals to report liabilities. Authorities said Chinese tax residents must pay tax on global income, including gains from offshore trusts.
Out of the 160 billion yuan in offshore trust individual income tax already declared, more than 120 billion yuan was collected in October alone, Xinhua said, citing tax authorities. Nationwide individual income tax revenue went up by nearly 90 per cent in October as a result, it said.
"The transition period for the offshore-trust income tax policy has concluded smoothly, with the vast majority of taxpayers cooperating actively," authorities said, according to Xinhua.