Binah Capital Group, Inc. Common StockBCG
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Financials
Binah Capital Group, Inc. Common StockChina Imposes 20% Tax on Offshore Trusts, Shaking the Ultra-Rich
RegulationMacro Impact 4
China has begun enforcing a 20% tax on offshore trusts, covering both asset transfers and annual income, prompting Chinese tycoons to urgently review or dismantle their trust structures and overseas investments. The measure has been in effect since late July, with tax offices in major cities such as Beijing and Hangzhou also starting to collect taxes on returns from insurance policies held abroad. A BCG report estimates that ultra-high-net-worth individuals in mainland China hold as much as 1.2 trillion dollars in overseas markets, and more than half of Chinese billionaires use offshore family trusts as a wealth management tool. Under the new rules, assets transferred into offshore trusts since January 2023 and trust income received before 2026 must be reported to authorities within 90 days. Analysts believe the tax enforcement could eventually extend to overseas employment income and may slow the flow of capital from mainland China into Hong Kong and other wealth management hubs in Asia.