, Columnist
China’s Surprise Move on Capital Gains Tax Is Genius Timing
After an impressive US bull run, Beijing is asking residents with overseas stock portfolios to pay up.
Beijing wants some of the US stock bull run windfall.
Photographer: StockFinland/E+/Getty Images
You can’t go broke paying capital gains taxes, but you will feel the pinch — and for mainland Chinese with sizable overseas investments, a bit of apprehension.
Chinese authorities have been contacting residents who trade US and Hong Kong stocks, asking them to declare their earnings and pay tax liabilities. A 20% levy is applied to dividend income as well as annual net stock trading profits.