# China's Tax Agency Urges Offshore Trust Filings Before Oct. 22

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/35625
Published: 2026-10-20T12:04:34.000Z
Updated: 2026-10-20T12:04:34.000Z
Section: Regulation

> Taxpayers who file and pay within a 90-day transition period avoid late-payment charges. The rules also cover certain cross-border property transfers and trust distributions.

China's State Taxation Administration has urged taxpayers with offshore trusts to file and pay personal income tax on trust income before Oct. 22, when a 90-day transition period ends for certain cross-border arrangements.

Taxpayers who complete both steps within the period avoid late-payment charges. The reminder follows rules issued July 24 by China's Ministry of Finance and tax administration covering trusts formed under foreign law and certain arrangements with similar functions.

For offshore trusts funded by Chinese tax residents, taxable income includes earnings that remain in the trust rather than being distributed. That treatment also applies to certain entities the trusts hold or control. Qualifying personal income tax already paid abroad can be credited against tax owed in China.

The transition provisions cover certain unpaid taxes on property placed in resident-funded offshore trusts from 2023 through 2025, along with trust income from before 2026. They also cover certain unpaid taxes on property placed by nonresidents from Jan. 1, 2023, through the rules' July 24, 2026, effective date, and certain distributions from nonresident-funded trusts to Chinese residents.

The tax administration plans to provide filing guidance and services. Taxpayers seeking relief from late-payment charges must complete filing and payment before Oct. 22.