Tax offices in Beijing’s Chaoyang district have spent the past week publicizing preparations to enforce China’s new individual income tax rules on offshore trusts, which took effect about two months ago, according to articles the bureau published on September 29 and 30 ahead of the National Day (October 1) holiday.
The district’s taxpayer service center said it had set up a dedicated team of tax officials and hotline staff, strengthened staff training, and stepped up data analysis and monitoring of public sentiment risks. It also emphasized confidentiality rules and anti-corruption warnings for staff.
The Third Tax Office held a second round of training to prepare for an expected peak in inquiries during the policy’s transition period, assigning dedicated personnel and standardizing how rules are interpreted. The Nanmofang office said it is using big data and information on high-net-worth individuals to flag suspicious offshore trust cases and has built a risk ledger aimed at preventing people from hiding assets or evading taxes through various structures. It described offshore trust taxation as an important tool for governing the taxes of wealthy individuals.
The Jinsong office organized officials to study the full life cycle of trusts, from creation to termination, and formed two teams: one to handle taxpayers’ questions and feedback, and another of foreign-language staff to review foreign-language trust documents and verify overseas materials.
The rules stem from an announcement by the Ministry of Finance and the State Taxation Administration in July (Announcement No. 21 of 2026). It says individuals who transfer property into an offshore trust, or receive income through one, must report and pay individual income tax. A companion announcement designates the tax authority where the related domestic business is registered as the supervising office. If no such business exists, the authority where the taxpayer’s domestic property is located or where they usually reside takes charge.
Source: Yicai, October 2, 2026
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