In late July, Beijing set an October 22 deadline for the declaration of offshore trust income, with a tax of 20% to be imposed on such profits, triggering a scramble among wealthy Chinese individuals to tot up liabilities.
Boston Consulting Group estimates China’s offshore wealth at about $1.7 trillion, and offshore trusts have gained popularity in recent years as a tool for top shareholders of overseas-listed Chinese companies to park wealth outside the country.
China’s State Taxation Administration has ordered employees to chase up those liable for offshore trust tax, working from a list drawn from the Hurun wealth rankings, corporate filings and other public information, three people said.
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