NYC’s wealthy Chinese grapple with Beijing’s tax rules as enforcement deadline nears

With the 90-day grace period soon to run out, some ultra-wealthy living outside mainland China face complicated tax liability questions

Months after Beijing unveiled a bevy of new tax rules for offshore trusts, the fallout has now reached New York City – home to one of the largest concentrations of mainland Chinese wealth outside Asia – after the changes swept across Hong Kong and Singapore.

Under the rules, which took effect on July 24, mainland tax residents who transfer property or shares into an offshore trust – or receive distributions from one – face a 20 per cent tax on realised gains, plus an annual tax on income the trust generates.

A 90-day grace period, running to October 22, allows taxpayers to declare and settle liabilities dating back to January 1, 2023, without incurring late-payment interest or administrative penalties.

With just over one month before that window closes, advisers serving New York’s Chinese community said affluent families were racing to review their cross-border wealth holdings.