Two departments have released new individual income tax rules for offshore trusts—people with money should take note.

Put simply: in the future, if you place assets into an offshore trust, or earn income through an offshore trust, you must declare and pay tax under China’s tax laws.
This “offshore trust” isn’t just the things that are literally called trusts—it also includes legal arrangements established overseas that, although they aren’t named trusts, effectively function as trusts.
There’s one exception, though: if what you buy is a legitimate financial product issued by a bank, an insurance company, a securities firm, or a fund company, this rule does not apply.
In short: the trust structure can’t conceal everything anymore—the taxes you owe still have to be paid.