Hong Kong insurers' shares slump on report China to tax offshore insurance income

Chinese mainland tax authorities have reportedly started levying personal income tax on returns from offshore insurance policies, the latest sign of greater scrutiny of offshore investments.

The logo of British life insurer Prudential is seen on their building in London on Mar 17, 2019. (Photo: Reuters/Simon Dawson)

BEIJING: Hong Kong-listed shares of major insurers, led by Prudential and AIA Group, fell sharply on Thursday (Aug 6) after Caixin reported China's mainland tax authorities are levying taxes on insurance policy income earned offshore.

Beijing and Hangzhou authorities have started to apply personal income tax rates of 20 per cent on returns from Hong Kong insurance policies, including dividend payouts and interest earned on prepaid premiums, Caixin reported on Wednesday.

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