Beijing's recent push to tax the offshore wealth of its citizens may be only the opening phase of a broader campaign for income from the holdings of China's rich families, according to analysts.
Yingke Zhou, director at Barclays, views the recent campaign to tax Chinese offshore assets as "potentially the first steps" toward tighter oversight of cross-border wealth, as Beijing works to ease fiscal strains and replenish capital to fund strategic technology industries.
"Policymakers could consider expanding scrutiny to areas such as exporter earnings held offshore, overseas investment [and] employment income, and over the longer term, estate or inheritance taxation," Zhou said in a recent report.
Unlike the U.S., U.K., Japan and major European economies, China levies no real estate, inheritance, or gift tax, and draws a comparatively small share of revenue from personal income, capital, and wealth-related levies, according to Bank of America Research.
BofA analysts see a similar path, saying wealthier households face "offshore interest income, salary and property gains potentially next in scope" for greater taxation.