China Taxes Offshore Trust Transfers at 20%, Gives 90 Days to Disclose

China now requires wealthy investors to report unpaid taxes on assets placed in offshore trusts since January 2023, Reuters reported August 21. A 20% levy applies to unrealized gains at the time of transfer. Trust income received before 2026 must be disclosed within 90 days. The rules convert offshore trusts from a tax-deferral vehicle into a taxable event.