Two departments: Individuals who load assets into offshore trusts and obtain income through offshore trusts should file and pay personal income tax

Comparative news. According to Jin Shi's report, the two departments issued announcements on matters relating to personal income tax on offshore trusts. Individuals incorporating assets into offshore trusts and obtaining income through offshore trusts are income obtained as stipulated in section 2 of the “Personal Income Tax Law of the People's Republic of China”, and they shall declare and pay personal income tax in accordance with the provisions of this Notice. Offshore trusts referred to in this notice refer to trusts established in accordance with foreign laws or other legal arrangements with fiduciary functions. Other legal arrangements with a trust function refer to foreign legal arrangements that are not established under the name of a trust and essentially have similar trust functions, except for financial products issued by banks, insurance companies, securities companies, fund companies, etc. that independently conduct business and bear risks to unspecified customers and are subject to supervision by financial supervisory authorities in the country or region where they are located.