Chinese mainland tax authorities have reportedly started levying personal income tax on returns from offshore insurance policies, the latest sign of greater scrutiny of offshore investments.
The logo of British life insurer Prudential is seen on their building in London on Mar 17, 2019. (Photo: Reuters/Simon Dawson)
06 Aug 2026 10:00AM
BEIJING: Shares in insurer Prudential fell as much as 13 per cent on Wednesday (Aug 5) after Caixin reported Chinese mainland tax authorities have started levying personal income tax on returns from offshore insurance policies, the latest sign of greater scrutiny of offshore investments.Authorities in Beijing and Hangzhou had already enforced the measures, applying a 20 per cent tax rate to returns from Hong Kong policies, including dividend payouts and interest earned on prepaid premiums, according to the report, which cited tax lawyers and insurance insiders.The plan would add to Beijing’s recent moves to tighten curbs on cross-border investment channels and intensify regulatory scrutiny over outbound investments to stem capital flight.CRACKDOWN ON CROSS-BORDER INVESTMENTSChina's finance ministry and tax authority said last month they would impose individual income tax on assets placed in offshore trusts and the income they generate.
