China goes for tax regime change, super-rich fear raid on $24 trn stash

Under the new rules, owners of offshore companies will not only pay taxes on dividends they receive but will also face levies of as much as 20% on corporate profits, from as low as zero previously

China’s plan to cut taxes in 2019 for the masses has the nation’s super-rich running for cover on concern the government will make up the shortfall by going after the wealthy.

Changes to the tax regime as of Jan. 1 mean authorities will be paying closer attention to assets and investment holdings. In a nation where personal wealth is estimated to have climbed to a record $24 trillion in 2018 -- $1 trillion of which is held abroad -- that potentially offers rich pickings. Anxiety over how the new rules will be enforced has already triggered a flood of Chinese clients