Recently, there have been reports that income from mainland Chinese tax residents purchasing Hong Kong insurance is included in the scope of taxation, causing concern. In this regard, the relevant person in charge of the State Administration of Taxation pointed out that according to the relevant provisions of China's personal income tax law, Chinese tax residents are required to fulfill their tax obligations on global income, and overseas insurance income also falls under the category of taxable income. This is not a new policy, let alone specifically targeting the Hong Kong insurance market; there is no need for excessive interpretation. The person in charge explained that individual residents should pay personal income tax according to law on income obtained from abroad, including insurance benefits. This is a common international practice, and it is also a basic principle that China has been adhering to since the implementation of the Personal Income Tax Law. In recent years, the tax authorities have been carrying out policy guidance and reminders in accordance with this principle and related regulations. “Overseas income includes many taxable items, and taxation is not specific to the insurance industry.” The person in charge further explained that according to law, our country treats residents' overseas income equally. Regardless of overseas insurance income or other investment income, and no matter what country or region the income comes from, they are required to file and pay taxes according to law. Regulating the administration of residents' overseas income taxes is beneficial to preventing cross-border tax evasion, safeguarding the country's tax rights and interests, and promoting social fairness.

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