China’s 20% tax on offshore trusts triggers rush to settle assets
China will levy 20% on offshore trusts at nearly every stage—from setup to distributions to termination—with a 90‑day window to declare and pay taxes on assets moved into such trusts since Jan 1, 2023 (deadline Oct 22). The move has spurred a rush of inquiries from wealthy families and advisers in Hong Kong and Singapore as they assess exposure, consider asset sales or distributions, and explore installment options, all while ensuring CRS reporting and navigating illiquid assets. The policy aims to boost revenue amid a slowing economy and tighter capital controls, signaling a shift in private‑wealth planning even though the rate is lower than the U.S. top rate.