Caixin reported on Aug 5 that Beijing and Hangzhou have recorded cases of
personal income tax being levied on Hong Kong insurance returns—specifically
insurance dividends and interest on prepaid premiums—with individual cases
applying a 20% rate. The report said the levies are not yet widespread and there
is no unified, clear enforcement standard. The Hong Kong Insurance Authority
said the HONG KONG GOVT and the regulator are closely monitoring mainland tax
arrangements for financial products and will keep close industry communication.
It reiterated that Chinese residents have long been required to declare and pay
tax on overseas investment income and advised the market not to over-interpret
the reports. The regulator noted Hong Kong’s insurance market remains mature and
offers flexible product features—currency choice, global asset allocation and
wealth-planning services—that continue to attract mainland clients.
