The State Administration of Taxation of China stated that Chinese tax residents are required to fulfill their tax obligations on global income in accordance with the law, and overseas insurance income falls within the scope of taxable income. This policy is not new, nor is it specifically targeted at the Hong Kong insurance market. The relevant rules treat foreign income from different countries and regions equally. According to Caixin, with the normalization of CRS information exchange, Chinese tax authorities have been able to obtain dividend and cash value data of overseas policies, and the payment of insurance benefits for overseas income taxation has been initiated.
