Key facts
- Some trust holders have sold assets to meet tax bills.
- Concerns exist about further selling pressure in financial markets.
A 90-day grace period for wealthy Chinese individuals to declare and pay personal income taxes related to their offshore trusts expired on October 22. The deadline marks a milestone in China’s tighter scrutiny of its wealthiest citizens’ overseas assets. Some trust holders have sold equity and other assets to meet tax bills, raising concerns about further selling pressure in financial markets. Some taxpayers are holding out over disputes about valuations and the scope of collection.