Two Departments: Individuals Who Place Assets in Offshore Trusts or Receive Income Through Offshore Trusts Shall Declare and Pay Individual Income Tax

Odaily Planet Daily News Two departments have issued an announcement regarding individual income tax matters related to offshore trusts. Individuals who place assets in offshore trusts or receive income through offshore trusts are deemed to have obtained income as stipulated in Article 2 of the Individual Income Tax Law of the People's Republic of China, and shall declare and pay individual income tax in accordance with the provisions of this announcement. Offshore trusts as referred to in this announcement refer to trusts established under foreign laws or other legal arrangements with trust functions. Other legal arrangements with trust functions refer to foreign legal arrangements that are not established in the name of a trust but essentially have similar trust functions, excluding financial products issued by banks, insurance companies, securities companies, fund companies, etc., that are supervised by financial regulatory authorities of the country or region where they are located and independently conduct business and bear risks facing unspecific clients. (Jin Shi)