China Pursues Offshore Trust Back Taxes, Payment Deadline Thursday

Chinese taxpayers must pay outstanding tax related to offshore trusts by Thursday. The new policy takes effect on Friday, with investors required to pay 20 per cent tax on the initial value of assets placed into trusts, plus 20 per cent tax on distributions. Authorities have applied the tax retroactively to 1 January 2023 and granted trust holders a 90-day penalty-free payment grace period during the policy change.