BroadChain has learned from Bloomberg that on March 31, Chinese regulators are ramping up tax collection efforts targeting offshore trusts that hold shares in specific Hong Kong-listed companies.
According to sources familiar with the matter, tax authorities in several regions—including Jiangsu and Shenzhen—have instructed the ultimate beneficial owners of these offshore trusts to submit detailed financial information. This includes reporting investment income such as dividends and capital gains from share sales.
Shanghai had already taken the lead in early 2025, requiring the reporting of relevant income data for the previous three years.
In at least one individual case, local tax authorities intend to levy a 20% tax on the related investment income, plus additional penalties. Another region has mandated the disclosure of offshore trust income for the past two years.