Two departments: Individuals who place their assets in offshore trusts and obtain income through offshore trusts shall declare and pay individual income tax as required.

According to the Wise Wealth Financial APP, on July 24th, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on the Individual Income Tax Matters of Offshore Trusts". It states that individuals who place assets into offshore trusts and receive income through offshore trusts are considered to have obtained income as defined in Article 2 of the "Individual Income Tax Law of the People's Republic of China" and should declare and pay individual income tax in accordance with this announcement. For resident individuals who place assets into offshore trusts, the taxable income is the difference between the market value at the time of placement minus the original value of the property and reasonable expenses. This should be declared and the corresponding individual income tax should be paid as "income from property transfers". After resident individuals declare and pay individual income tax according to the preceding paragraph, the original value of the property is adjusted to the market value at the time of placement.