[Two Departments: Individuals Must Declare and Pay Personal Income Tax for Transferring Assets into Offshore Trusts and Gaining Income Through Offshore Trusts] Odaily Planet Daily News – Two departments have issued an announcement regarding personal income tax matters related to offshore trusts. Individuals transferring assets into offshore trusts or gaining income through offshore trusts are considered to have obtained income as defined in Article 2 of the 'Personal Income Tax Law of the People's Republic of China' and must declare and pay personal income tax in accordance with the provisions of this announcement. The offshore trusts mentioned in this announcement refer to trusts established under foreign laws or other legal arrangements with trust functions. Other legal arrangements with trust functions refer to arrangements that are not established under the name of a trust but essentially have similar trust functions under foreign laws. However, financial products issued by banks, insurance companies, securities companies, fund companies, etc., that are regulated by financial regulatory authorities in their respective countries and regions, operate independently for unspecified clients, and bear risks, are excluded. (Jin10)