Recently, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Matters Relating to the Collection of Personal Income Tax on Offshore Trusts”. Relevant officials from the Department of Taxation and Administration of the Ministry of Finance and the Income Tax Department of the State Administration of Taxation answered questions from reporters about this. In recent years, some individuals have established offshore trusts to carry out intergenerational wealth transmission, cross-border asset allocation, and risk management. Since offshore trusts are often set up in countries and regions where information transparency is low and tax burdens are low, some individuals use them to transfer assets, conceal wealth, and evade taxes. According to the basic principles of taxing residents' global income under China's personal income tax law, the “Notice” clarifies the taxation regulations for the establishment, survival, and termination of liquidation of offshore trusts, which is conducive to improving tax certainty and transparency, and facilitating taxpayers' compliance; it is conducive to promoting social fairness, safeguarding national rights and interests, and stabilizing taxpayers' expectations.

Recently, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Matters Relating to the Collection of Personal Income Tax on Offshore Trusts”. Relevant officials from the Department of Taxation and Administration of the Ministry of Finance and the Income Tax Department of the State Administration of Taxation answered questions from reporters about this. In recent years, some individuals have established offshore trusts to carry out intergenerational wealth transmission, cross-border asset allocation, and risk management. Since offshore trusts are often set up in countries and regions where information transparency is low and tax burdens are low, some individuals use them to transfer assets, conceal wealth, and evade taxes. According to the basic principles of taxing residents' global income under China's personal income tax law, the “Notice” clarifies the taxation regulations for the establishment, survival, and termination of liquidation of offshore trusts, which is conducive to improving tax certainty and transparency, and facilitating taxpayers' compliance; it is conducive to promoting social fairness, safeguarding national rights and interests, and stabilizing taxpayers' expectations.