China collected more than RMB120 billion ($18 billion) in October from a tax campaign targeting offshore trusts held by wealthy citizens, with the declared total exceeding RMB160 billion ($24 billion). Some of the amount remains unpaid, according to reports citing official figures.
The October receipts helped drive an almost 90 per cent rise in national personal income tax revenue for the month, Xinhua News Agency reported. It said most taxpayers cooperated proactively. The Straits Times of Singapore reported the figures, citing Bloomberg.
The campaign is part of Beijing’s effort to increase state revenue by enforcing tax rules on the country’s wealthiest residents. High-net-worth individuals were given until late October to settle bills tied to overseas trusts without additional charges.
In July, China said it would formally tax offshore trusts established by its citizens. The move closes a loophole long used by business dynasties for asset protection and succession planning. The crackdown could affect financial centres such as Hong Kong, which has overtaken Switzerland as the world’s largest cross-border financial centre.
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