Hong Kong, 10 August 2026 – China’s decision to tax gains from offshore trusts is reshaping the compliance landscape for wealthy mainland families and testing whether Hong Kong can preserve its position as the world’s largest cross-border wealth-management centre.
The new rules impose a 20% tax on gains from offshore trusts involving mainland Chinese beneficiaries or underlying mainland assets. They apply throughout a trust’s lifespan, including establishment, income distribution and termination, and can reach gains dating back to 1 January 2023.
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