Bloomberg (gated) conveying the information, citing unnamed ” people familiar with the matter”.
- China has begun enforcing a long-overlooked tax on overseas investment gains by the country’s ultra-rich
- up to 20% levies on investment gains
Says the report on those targeted:
- had at least $10 million in offshore assets
- others were shareholders of companies listed in Hong Kong and the US
The tax has been on the books for years, but not enforced rigorously at all.
China is seeking ways to expand its sources of revenue, the property slump has cratered land sales revenue.
President Xi Jinping is also seeking a more equal distribution of wealth in his drive for “common prosperity”.
Xi Jinping
This’ll prompt more to move, or at least move assets/earnings, offshore.