Two departments: Due to the fact that offshore trusts are often established in countries and regions with low transparency of information and low tax burdens, some individuals use them to transfer assets, conceal wealth, and evade taxes.

Recently, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on the Relevant Matters of Individual Income Tax on Offshore Trusts". Officials from the Taxation Department of the Ministry of Finance and the Income Tax Department of the State Administration of Taxation answered questions from reporters on this issue. In recent years, some individuals have used offshore trusts for intergenerational wealth transfer, cross-border asset allocation, and risk management. Due to the fact that offshore trusts are often established in countries and regions with low transparency and low tax burdens, some individuals use them to transfer assets, conceal wealth, and evade taxes. In accordance with the basic principle of the individual income tax law of taxing residents on their global income, the "Announcement" clearly defines the tax regulations for the establishment, continuation, and termination of offshore trusts, which helps to increase tax certainty and transparency, facilitate taxpayer compliance, promote social equity, safeguard national interests, and stabilize taxpayer expectations.