Policy & Legal Updates
China Tightens Offshore Trust and Overseas Income Tax Rules for Resident Individuals
China has implemented strict individual income tax rules for offshore trusts, imposing a 20 percent tax rate across asset funding, trust income, and distributions. The Ministry of Finance and State Taxation Administration established a 90-day transitional compliance window closing on October 22, 2026, allowing taxpayers to settle historical trust liabilities without late surcharges. Cross-border tax enforcement is increasingly supported by automated data exchange under the Common Reporting Standard.
