China’s New Tax Rules on Offshore Trusts

What families need to know — the July 2026 IIT Announcements

July 31, 2026

min read

News

Offshore trusts have long given families a way to plan across borders and generations. A new announcement from China's authorities changes the calculus for any structure with a PRC-resident connection — and it reaches back retrospectively.

On 24 July 2026, the People's Republic of China's Ministry of Finance and State Taxation Administration jointly issued Announcement [2026] No. 21 (Announcement on Matters Concerning Individual Income Tax on Offshore Trusts) and its companion procedural rule, State Taxation Administration Announcement [2026] No. 15, introducing a new Individual Income Tax regime for PRC tax residents holding interests in offshore trusts. The Announcements took effect immediately, and apply IIT to income derived from offshore trusts, and to transfers of property into offshore trusts.

This article summarises the Announcements’ key provisions for general information. While it is based on the Chinese-language text of the Announcements, it remains a summary rather than a full translation. Additionally, it has not been independently verified against PRC tax or legal advisors, and does not constitute tax or legal advice.

Families or individuals who are PRC tax residents with an interest in an offshore trust, or non-residents who have contributed China-sourced property to one, should seek independent PRC tax advice without delay.

Scope and Residency

Offshore trusts covered: trusts established under foreign law, and other overseas arrangements with similar functions, are within scope. Regulated, arm’s-length financial products issued by foreign banks, insurance companies, securities firms or fund companies to unspecified clients on an independent, risk-bearing basis are excluded.
Residency status: individuals holding foreign nationality or overseas long-term or permanent residency may still be classified as PRC tax residents where their primary economic interests are derived from China.

Transferring Property Into an Offshore Trust

Resident settlors: the transfer is treated as a taxable “Income from Transfer of Property” event. Tax is charged on the gain (market value less original cost and reasonable expenses), and the property’s tax basis is then stepped up to market value.

Non-resident settlors: tax applies only to China-sourced property transferred into trust. Where a non-resident transfers property into a trust actually controlled by a PRC resident, the transfer is deemed made by the PRC resident.

Mixed-contributor trusts: where both resident and non-resident individuals contribute to the same trust, the entire trust property is deemed transferred by the PRC resident individuals.

Taxation During the Existence of the Trust

“Look-through” treatment: income generated by a PRC-resident settlor’s offshore trust, and by its underlying controlled overseas entities, is taxed to the resident annually on an accrual basis — whether or not actually distributed.
Income is categorised as either “Income from Transfer of Property” or “Income from Interest, Dividends, and Bonuses. ” The two categories cannot be offset against one another, losses from property transfers cannot be carried forward, and trust administrative expenses (including trustee, legal, and advisory fees) are not deductible.
Double taxation is mitigated: income already taxed annually is not taxed again on actual distribution, and foreign individual income tax already paid may be credited against PRC tax payable.

Deemed Distributions and Anti-Avoidance Triggers

Distributions from a non-resident trust to a PRC resident — whether direct or via third parties or related entities — are taxed as “Income from Interest, Dividends, and Bonuses. ” Using trust assets to provide loans or guarantees to a resident, or permitting free or below-market use of trust assets, is treated as a deemed distribution.
Change of residency: if a PRC-resident settlor becomes a non-resident, unrealised gains on the trust property (market value less cost) as at the date of the change are taxed as “Income from Interest, Dividends, and Bonuses. ” Any IIT unpaid for the period from 1 January of that year to the date of the change, and for earlier years, must also be declared and settled at that time.
Death of settlor: where trust property is inherited by a non-resident, or remains uninherited, unrealised gains are taxed as “Income from Interest, Dividends, and Bonuses” (payable by the trustee or a domestic agent). Where inherited by a resident, the trust continues to be treated as a PRC-resident offshore trust. Any IIT unpaid for the period from 1 January of the year of death to the date of death, and for earlier years, must also be declared and settled at that time.
Termination: liquidation proceeds of a resident offshore trust are taxed as “Income from Interest, Dividends, and Bonuses” on the net gain.

Filing Deadlines and Payment Terms

Annual filings: PRC-resident settlors must declare trust income annually between 1 March and 30 June of the following year.
Event-based filings: transfers by non-residents, changes of residency, deaths of settlors, and trust terminations must be filed within 15 days of the following month.
Deferred payment: where payment on trust termination or death would cause hardship, taxpayers may apply to pay the tax due in equal instalments over up to five years.

Transitional Relief

Taxpayers with unpaid IIT fall into three separate transitional windows, each requiring declaration and settlement within 90 days of 24 July 2026 without late-payment penalties (on our reading, expiring around 22 October 2026 — we recommend confirming the precise deadline with PRC tax counsel): (i) resident settlors’ unpaid IIT on property transferred into an offshore trust between 1 January 2023 and 31 December 2025; (ii) non-resident settlors’ unpaid IIT on property transferred into an offshore trust between 1 January 2023 and 24 July 2026; and (iii) undistributed trust income accrued before 1 January 2026, taxed uniformly as “Income from Interest, Dividends, and Bonuses” for this period. Income accruing on or after 1 January 2026 falls outside this transitional relief and is subject to the ordinary annual filing rules described above.
Beyond the 90-day period, late-payment interest, tax recovery action, and statutory tax-evasion penalties may apply.
Large unpaid amounts: where the unpaid tax is substantial, tax authorities may extend the standard recovery look-back period under the PRC Tax Collection and Administration Law.

What This Means for Families with Offshore Trusts

The Announcements reflect a significant development for any family with a PRC-resident connection to an offshore trust, whether as settlor, beneficiary, or contributor of China-sourced property. Its retrospective reach, the annual look-through taxation of undistributed income, and the short transitional window all argue for prompt review rather than a wait-and-see approach.

If this applies to you or your family, we recommend seeking independent PRC tax advice as a matter of priority, particularly given the 90-day period applicable to unpaid liabilities.

_{This article is provided for general information only and is not exhaustive. It is based on the official Chinese-language text of the Announcements issued by the PRC Ministry of Finance and State Taxation Administration, and has not been independently verified by Portcullis Group against PRC legal or tax advisors. It should not be relied upon as tax or legal advice, and should not be acted upon without independent verification and advice from qualified PRC tax counsel.}

‍

中国离岸信托新税收规则

家族和客戶须知 — 2 0 2 6 年 7 ⽉个⼈所得税新规公告

‍

⻓期以来，离岸信托为家族提供了跨境、跨代进⾏财富规划的⼯具。中国有关部⻔近⽇发布的新公告，改变了任何与中国⼤陆税务居⺠有关联的信托架构的税务考量——且该规定具有追溯效⼒。

2026年7⽉24⽇，中华⼈⺠共和国财政部与国家税务总局联合发布《财政部税务总局关于离岸信托个⼈所得税有关事项的公告》（财政部税务总局公告 2026年第21号），以及配套的征管程序性规定《国家税务总局关于离岸信托个⼈所得税有关征管事项的公告》（国家税务总局公告2026年第15号），针对持有离岸信托权益的中国税务居⺠，建⽴了新的个⼈所得税征收制度。上述公告即⽇起⽣效，并对离岸信托相关所得，以及向离岸信托转移财产的⾏为，适⽤个⼈所得税。

本⽂仅对上述公告的主要条款作⼀般性概述。本⽂虽基于公告的中⽂原⽂撰写，但仅为摘要，并⾮全⽂翻译，亦未经中国税务或法律顾问独⽴核实，不构成税务或法律意⻅。

‍

凡持有离岸信托权益的中国税务居⺠家族或个⼈，或曾向离岸信托注⼊中国来源财产的⾮居⺠，均应尽快寻求独⽴的中国税务意⻅。

‍

适⽤范围与居⺠⾝份认定

涵盖的离岸信托：依据外国法律设⽴的信托，以及具有类似功能的其他境外安排，均属适⽤范围。由境外银⾏、保险公司、证券公司或基⾦公司向不特定客⼾发⾏的、独⽴承担⻛险的⼀般性⾦融产品不在此列。
居⺠⾝份认定：即使个⼈持有外国国籍或境外⻓期或永久居留权，若其主要经济利益来源于中国，仍可能被认定为中国税务居⺠。

‍

向离岸信托转移财产

居⺠委托⼈：该转移⾏为将被视为应税的“财产转让所得”事项。应就转让收益（公允市场价值减去原始成本及合理费⽤）征税，随后该财产的计税基础将调整为公允市场价值。
⾮居⺠委托⼈：仅就转⼊信托的中国来源财产征税。若⾮居⺠将财产转⼊实际由中国税务居⺠控制的信托，该转移⾏为视为由该中国税务居⺠作出。
混合出资信托：若同⼀信托由居⺠与⾮居⺠个⼈共同出资，则该信托的全部财产均视为由中国税务居⺠个⼈转移。

‍

信托存续期间的税务处理

“穿透”处理原则：中国税务居⺠委托⼈所设离岸信托，以及该信托实际控制的境外主体所产⽣的收益，⽆论是否实际分配，均按年度以权责发⽣制向该居⺠征收个⼈所得税。

所得分类为“财产转让所得”或“利息、股息、红利所得”两类，两类所得不得相互抵销，财产转让损失不得结转，信托管理费⽤（包括受托⼈费⽤、法律及顾问费⽤）不得税前扣除。
避免双重征税：已按年度纳税的所得，在实际分配时不再重复征税；已在境外缴纳的个⼈所得税，可在应缴中国税款中抵免。

‍

视同分配及反避税触发情形

⾮居⺠信托向中国税务居⺠的分配——⽆论是直接分配，还是通过第三⽅或关联⽅分配——均按“利息、股息、红利所得”征税。以信托资产向居⺠提供借款或担保，或允许其⽆偿或以低于市场价的条件使⽤信托资产，均视为分配。
居⺠⾝份变更：若中国税务居⺠委托⼈转为⾮居⺠，则截⾄⾝份变更之⽇，信托财产的未实现收益（公允市场价值减去成本）将按“利息、股息、红利所得”征税。⾝份变更当年1⽉1⽇⾄变更之⽇期间，以及以前年度应缴未缴的个⼈所得税，也须⼀并申报并结清。
委托⼈⾝故：若信托财产由⾮居⺠继承，或⽆⼈继承，未实现收益按“利息、股息、红利所得”征税（由受托⼈或境内代理⼈缴纳）。若由居⺠继承，该信托将继续被视为中国税务居⺠离岸信托。⾝故当年1⽉1⽇⾄⾝故之⽇期间，以及以前年度应缴未缴的个⼈所得税，须⼀并申报并结清。
信托终⽌：居⺠离岸信托清算所得，就其净收益按“利息、股息、红利所得”征税。

‍

申报时限与缴税安排

年度申报：中国税务居⺠委托⼈须于次年3⽉1⽇⾄6⽉30⽇期间就信托所得进⾏年度申报。
事项申报：⾮居⺠的财产转移、居⺠⾝份变更、委托⼈⾝故及信托终⽌，须于次⽉15⽇内申报。
延期缴纳：若信托终⽌或委托⼈⾝故所产⽣的税款缴纳将造成缴税困难，纳税⼈可申请在不超过五年的期限内分期等额缴纳应纳税款。

‍

过渡期宽免安排

就未缴纳的个⼈所得税，存在三类不同的过渡期宽免安排，均须⾃2026年7⽉24⽇起90⽇内申报并结清税款，且不加收滞纳⾦（据我们理解，该90⽇窗⼝期截⽌⽇期约为2026年10⽉22⽇；建议就具体截⽌⽇期向中国税务顾问进⼀步确认）：（⼀）居⺠委托⼈于2023年1⽉1⽇⾄2025年12⽉31⽇期间向离岸信托转移财产⽽未缴纳的个⼈所得税；（⼆）⾮居⺠委托⼈于2023年1⽉1⽇⾄2026年7⽉24⽇期间向离岸信托转移财产⽽未缴纳的个⼈所得税；以及（三）2026年1⽉1⽇前产⽣的未分配信托所得（该期间所得统⼀按“利息、股息、红利所得”征税，不区分所得项⽬）。⾃2026年1⽉1⽇起产⽣的所得不适⽤本过渡期宽免，须按照上⽂所述的常规申报规则处理。
超过90⽇期限后，可能被加收滞纳⾦、采取税款追缴措施，并适⽤法定的逃税处罚。
应缴未缴税款⾦额较⼤的：税务机关可依据《中华⼈⺠共和国税收征收管理法》的规定，延⻓追缴年限。

‍