Xu declines comment on offshore policy tax reports
RTHK · 2 SOURCESabout 22 hours ago2 MIN
Summary
Hong Kong Financial Services and the Treasury Secretary Christopher Hui said he would not comment on media reports or speculation that mainland authorities are taxing returns from offshore insurance policies at 20% personal income tax . He said the Hong Kong government and regulators have maintained communication with relevant mainland departments on policy measures and that compliance with laws and regulations is necessary at all times . Reports cited by local media said the mainland move may cover gains from Hong Kong policies, including dividends and interest on prepaid premiums, though the detailed scope has yet to be officially clarified .
Key Points
- Mainland media reports said tax authorities have started collecting 20% personal income tax on offshore policy gains held by mainland residents .
- CRHK said preliminary enforcement cases were reported in Beijing and Hangzhou, but the measure has not yet been broadly implemented nationwide .
- Reported taxable items include Hong Kong policy dividends and interest income generated from prepaid premiums, according to tax lawyers, banks and insurance industry sources .
- Hui said he would not comment on reports or speculation, but stressed ongoing communication with mainland authorities and the need to follow regulations .
- The news hit Hong Kong financial stocks, with AIA down nearly 6%, Prudential over 4%, and HSBC about 1% .
Why It Matters
If enforcement continues, analysts said mainland visitors may buy fewer new Hong Kong insurance policies, narrowing the return advantage of offshore products after tax and pressuring insurers’ near-term sales and valuations . At the same time, uncertainty over whether this is selective enforcement of existing rules or a broader tightening of cross-border capital oversight is likely to keep markets cautious until mainland authorities provide clearer guidance .