China Taxes Offshore Trust Transfers at 20%

China now requires wealthy investors to report unpaid taxes on assets moved into offshore trusts since January 2023, Reuters reported August 21. A 20% levy applies to unrealized gains — paper profits not yet cashed out — at transfer. Trust income received before 2026 must be disclosed within 90 days. The rules turn what was a tax-deferral tool into a taxable event.