China's wealthy move assets to US bank accounts amid Beijing's tax expansion
- 1China's wealthy are turning to the US as Beijing implements retroactive taxation on offshore assets in July.
- 2Authorities announced in July that they will tax 20% of income and profits from overseas trusts owned by Chinese tax residents.
- 3The US remains outside the OECD's Common Reporting Standard (CRS) system, in which more than 100 jurisdictions automatically share financial account data.
So what's the key point?
Wealthy individuals in China are opening US bank accounts because the Chinese government decided to tax overseas assets. The US is a favorable place to move assets since it does not participate in the system that automatically shares financial information.
Source CNBC · View original ↗
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