Greater China Banks Daily: China tightens tax rules on offshore trust wealth; Hong Kong eases listing thresholds

Research evidence excerpt

Greater China Banks Daily: China tightens tax rules on offshore trust wealth; Hong Kong eases listing thresholds

Global Research

27 July 2026ab

Greater China Banks Daily Equities

ChinaChina tightens tax rules on offshore trust wealth;

Hong Kong eases listing thresholds Banks

May Yan

Analyst

may.yan@ubs.com

UBS China A-Share Conference 2026 and post-conference tour will take place this +852-2971 7157

September. Join us for a holistic and in-depth China macro tour in Shenzhen,

Alex Ye

Dongguan and Beijing during 2-4 Sept (Wed-Fri), where we will meet financial

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Catherine Yang, CFA

China tightens tax rules on offshore trust wealth S1460526010003

Reuters, July 24: China will begin taxing assets transferred into offshore trusts and the catherine-za.yang@ubs.com

income they generate, closing a long-standing loophole used by wealthy citizens to hold +86-755-2215 8860

wealth overseas. The new rules impose a 20% tax on gains when shares, property, or Helen Li, CFA

other assets are moved into such trusts, and a 20% annual tax on trust income and Analyst

income from controlled offshore entities. Beijing is also tightening anti-avoidance rules, helen-za.li@ubs.com

including treating some foreign citizens or overseas permanent residents as Chinese tax +852-2971 6066

residents if their main economic interests remain in China. Taxes owed on trust assets

since January 2023 and trust income received before 2026 must be paid within 90 days

to avoid late-payment penalties.