On August 7, recent reports indicated that income from Hong Kong insurance purchased by mainland Chinese tax residents has been included in the taxable scope, drawing attention. In response, an official from the relevant department of the State Taxation Administration pointed out that according to China's Personal Income Tax Law, Chinese tax residents are obligated to pay taxes on their global income, and income from overseas insurance falls within taxable income. This is not a new policy, nor is it specifically targeted at the Hong Kong insurance market, so there is no need for excessive interpretation. "Overseas income includes multiple taxable items; taxation is not specifically aimed at the insurance industry," the official further explained. China applies tax laws equally to residents' overseas income, whether from overseas insurance or other investment income, and regardless of the country or region of origin, all must be declared and taxed according to law. Regulating the taxation of residents' overseas income helps prevent cross-border tax evasion, protects national tax interests, and promotes social fairness. (The Paper)