Caixin Explains: How China’s New Offshore Trust Rules Close Tax Loopholes

China’s wealth management industry is scrambling to assess the impact of new regulations that target longstanding loopholes for offshore trusts. 

The rules impose a 20% personal income tax across the establishment, duration and liquidation phases of these vehicles, marking a significant escalation in Beijing’s crackdown on tax avoidance and evasion.

Caixin has learned from trust companies, cross-border wealth planners and tax professionals that they are busy helping clients navigate the changes.