China Imposes Income Tax on Offshore Trust Gains, Seeking Revenue as Growth Slows

3 articles · Updated · South China Morning Post · Jul 27

Effective immediately, China will levy personal-income tax on offshore trusts owned by wealthy individuals, targeting gains on assets such as stocks and property after they are placed into trusts.
Annual income generated by those trusts will also be taxed, according to a Finance Ministry statement, closing a loophole long used by rich mainland families to reduce tax bills.
Beijing is tightening the rules as slowing economic growth and rising fiscal burdens increase pressure to raise revenue and broaden the tax base.

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