Posted by Chinenye on Thu 22nd Oct, 2026 - tori.ng
China is turning its attention to wealthy citizens with money hidden in overseas investments, demanding a new tax payment from those affected.
(China flag. Photo by Punch News)
China is trying to get back some of the huge fortunes that its rich families have stashed overseas.
Millionaires and billionaires have until Thursday to pay a new tax from Beijing.
China's fast growth has made many people very rich.
Many of them keep their money in trusts in places like Hong Kong, Singapore and Tokyo.
Rules announced in July put a 20 per cent tax on dividends and interest earned from offshore trusts.
There was a 90 day transition period for first payments, and it ends on Thursday.
Analysts say this has led to a rush of activity as rich families sort out their money.
The timing matters. Local governments used to make much of their money from selling land.
Now many are short of cash because the property market has been in trouble for years.
Beijing needs more money coming in.
President Xi Jinping has said he is cleaning up problems from past leaders, such as corruption and unequal wealth.
Still, offshore wealth is believed to be worth hundreds of billions of dollars, and Beijing wants a share of it.
Dan Wang of Eurasia Group says China will keep enforcing the tax because it needs the money.
She expects the government to tax the wealthy more in the future, with personal income tax becoming a bigger source of revenue.
The rules have also raised questions.
The tax may apply to people who have gained foreign citizenship or residency but still earn most of their income from China.
That means moving abroad may not get someone out of China's tax net.
Some experts see a wider goal.
Alicia Garcia Herrero of Natixis says the tax is also a way to keep talent and money in China.
She compares it to recent moves to stop local technology from leaving the country.
Wang adds that keeping capital at home lets it fund new technology projects.