According to Red Star News, the Ministry of Finance and the State Taxation Administration issued an announcement clarifying that when individuals place assets into offshore trusts and obtain income through offshore trusts, they must declare and pay individual income tax. When resident individuals contribute assets, the taxable amount shall be the balance after deducting the original value and reasonable expenses based on market value, and it shall be taxed as “income from property transfers.” For income generated during the trust’s existence, regardless of whether it is actually distributed, it must also be declared annually by resident individuals. Any related taxes that were due but unpaid during the period from 2023 to 2025 may be paid within 90 days after the announcement takes effect without incurring late payment interest; the new rules take effect as of the date of publication.