Mainland residents' insurance profits included in the tax scope? Hong Kong Insurance Authority responds.

On August 5, Caixin reported that cases of personal income tax being levied on insurance returns from Hong Kong have already emerged in places such as Beijing and Hangzhou, involving two types of income: insurance dividends and prepaid premium interest, with a tax rate of 20% applicable to individual cases. However, the taxation is not yet widespread, and there is no unified or clear enforcement standard. In response, the Hong Kong Insurance Authority exclusively told Interface News that the Hong Kong Special Administrative Region government and the Insurance Authority are closely monitoring the latest developments regarding the tax arrangements for financial products in the mainland, while maintaining close communication with the industry. The Hong Kong Insurance Authority stated that the requirement for Chinese residents to declare and pay taxes on overseas investment income has always existed, and the market should not over-interpret or speculate on this. The Hong Kong insurance market is mature, with flexible and advanced product design, capable of providing professional services such as currency selection, global asset allocation, life planning, and wealth inheritance, which are believed to have a certain appeal to mainland clients.