In response to the recent rumor that “the Mainland levies 20% personal income tax on overseas insurance policy income”, Hong Kong Legislative Council Insurance Member Chan Pui-leung said in response to the first financial inquiry that the discussions were mainly related to tax “common reporting guidelines” and individual overseas income declaration arrangements. Up to now, no official policy documents or implementation details issued by relevant departments have been received. All relevant information comes from news reports. Chen Peiliang pointed out that there have always been requirements for Chinese residents to declare and pay taxes on overseas investment income in accordance with the law, covering all overseas investment income, and not specifically for insurance products. Recently, some regions in the mainland have begun to actually implement the relevant standards, which has sparked a buzz in the market. In his view, even if future tax arrangements are adjusted, they may have an impact on the Hong Kong insurance industry in the short term, and not necessarily bad for the industry in the long run. CRS deepens the implementation of transparency in the cross-border management of superimposed funds. In the future, it may spawn more standardized closed-loop funding channels — outbound capital insurance, which will flow back in an orderly manner after expiration. At the same time, he mentioned the profit margin of Hong Kong insurance policies: Currently, the income level of Hong Kong savings insurance is about 6% to 6.5%, and similar products in the mainland are about 3%. Even after tax payments are deducted, Hong Kong insurance policies still have a net income advantage of close to 2 percentage points. I believe this will not drastically reduce the willingness of mainland visitors to apply for insurance in Hong Kong. He believes that Hong Kong's insurance products are flexible in design, can be allocated in multiple currencies, and are still competitive in terms of wealth inheritance and planning. Chan Pui-leung also said that there is no need to raise questions about this in the Legislative Council for the time being.

In response to the recent rumor that “the Mainland levies 20% personal income tax on overseas insurance policy income”, Hong Kong Legislative Council Insurance Member Chan Pui-leung said in response to the first financial inquiry that the discussions were mainly related to tax “common reporting guidelines” and individual overseas income declaration arrangements. Up to now, no official policy documents or implementation details issued by the relevant departments have been received. All relevant information comes from news reports. Chen Peiliang pointed out that there have always been requirements for Chinese residents to declare and pay taxes on overseas investment income in accordance with the law, covering all overseas investment income, and not specifically for insurance products. Recently, some regions in the mainland have begun to actually implement the relevant standards, which has sparked a buzz in the market. In his view, even if future tax arrangements are adjusted, they may have an impact on the Hong Kong insurance industry in the short term, and not necessarily bad for the industry in the long run. CRS deepens the implementation of transparency in the cross-border management of superimposed funds. In the future, it may spawn more standardized closed-loop funding channels — outbound capital insurance, which will flow back in an orderly manner after expiration. At the same time, he mentioned the profit margin of Hong Kong insurance policies: Currently, the income level of Hong Kong savings insurance is about 6% to 6.5%, and similar products in the mainland are about 3%. Even after tax payments are deducted, Hong Kong insurance policies still have a net income advantage of close to 2 percentage points. I believe this will not drastically reduce the willingness of mainland visitors to apply for insurance in Hong Kong. He believes that Hong Kong's insurance products are flexible in design, can be allocated in multiple currencies, and are still competitive in terms of wealth inheritance and planning. Chan Pui-leung also said that there is no need to raise questions about this in the Legislative Council for the time being.