Bloomberg reported that China's offshore-trust tax campaign collected more than 120 billion yuan in October as authorities pressed wealthy taxpayers to settle eligible overdue bills.
Bloomberg said declarations for unpaid taxes linked to overseas trusts topped 160 billion yuan (S$30.7 billion), though part of the sum remained outstanding. Xinhua News Agency said the receipts fueled an almost 90% increase in China’s personal income tax revenue for October and that most taxpayers cooperated proactively.
Bloomberg reported that high-net-worth individuals had until late October to pay eligible bills under the July rules without extra charges. China’s Ministry of Finance (MOF) and State Taxation Administration (STA) issued the rules July 24. The temporary waiver covered specified unpaid-tax categories and periods. One eligible category included certain gains tied to property placed in offshore trusts from Jan. 1, 2023, through Dec. 31, 2025; some qualifying trust income earned before Jan. 1, 2026, was also covered, as detailed in EconoTimes’ earlier coverage of the waiver’s qualifying periods.
Bloomberg described the policy as closing a tax-planning route wealthy family groups had used to shield assets and arrange inheritance. The outlet has also reported that authorities formed specialist audit teams for wealthy taxpayers, with some assigned to individual billionaires. Bloomberg said people who failed to file or gave inaccurate information could face audits and public disclosure.
Bloomberg said domestic tax lawyers expected a $15 billion to $25 billion haul, close to collections so far. The outlet reported that the amount collected remains below the $100 billion worst-case estimate Barclays analysts made for Hong Kong assets.
Some taxpayers sold shares or borrowed through overseas margin loans to pay their bills, Bloomberg reported. The outlet also reported, citing people familiar with the matter, that some sought foreign passports amid fears China could impose an exit tax on emigrants.
