Two departments in China have announced that individuals who transfer their assets into offshore trusts and obtain income are required to pay personal income tax

Two departments in China have issued a notice on personal income tax related to offshore trusts, clarifying that individuals who transfer their property into offshore trusts and obtain income through offshore trusts are considered to have obtained income as stipulated in Article 2 of the Personal Income Tax Law of the People's Republic of China and should declare and pay personal income tax.