Taxation of offshore trust income proceeds smoothly and orderly

Xinhua News Agency, Beijing, November 11 (Reporter Liu Kaixiong) Reporters learned from the State Administration of Taxation on November 11 that at present, the transition period of the offshore trust income taxation policy has ended smoothly, and the vast majority of taxpayers have actively cooperated, with a total of more than 160 billion yuan in offshore trust personal income tax declarations, of which more than 120 billion yuan was received in October, driving the country's personal income tax revenue to increase by nearly 90% in October.

On July 24, 2026, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on Matters Concerning Personal Income Tax on Offshore Trusts", stipulating that taxpayers who obtain income from offshore trusts must complete the declaration and payment of taxes within a 90-day transition period, and no late payment fees will be charged.

Li Xuhong, a professor at the Beijing National Accounting Institute, said that taxing resident individuals’ global income, including offshore trust income, is a basic principle of my country’s personal income tax law and a common international practice. The announcement not only further clarifies the tax law principles for the taxation of offshore trust equity reductions, dividends and other gains, but also clearly delineates the taxation rules for each link, unifies tax calculation standards, significantly improves the certainty and transparency of taxation policies, helps guide taxpayers to comply with regulations, and better exerts the regulatory role of taxation in promoting the rule of law and fairness.

The relevant person in charge of the Income Tax Department of the State Administration of Taxation stated that the tax department carried out targeted reminders and guidance for taxpayers during the 90-day transition period. In particular, before the end of the transition period, they issued reminders on offshore trust tax declaration matters through the official website, and provided tax processing convenience for taxpayers who made declarations.

"With the coordinated support of all parties and the active cooperation of most taxpayers, the early policy implementation has achieved remarkable results." The person in charge said that in the next step, for taxpayers who have made false declarations or have not actively declared after the transition period, the tax department will urge them to declare and pay taxes in accordance with the law, and impose late fees as required; for taxpayers who still do not declare or do not declare truthfully after being urged, measures such as filing a case for investigation will be taken in accordance with the law, and the worst cases will be publicly exposed. At the same time, the tax authorities will also seriously investigate and deal with illegal intermediaries and individuals that induce and assist taxpayers to evade taxes in accordance with laws and regulations and expose them as appropriate, so as to promote the implementation of offshore trust income taxation policies to be more in place and to play a better role.