Key facts
- Employee stock incentive trusts are exempt from the new tax.
- The deadline for declaring and paying back taxes on offshore trusts is October 22.
China's top tax authority has clarified enforcement rules for the new tax on offshore trusts, defining the threshold for extended retroactive collection and exempting employee stock incentive trusts from the tax. The State Taxation Administration reminded taxpayers with existing offshore trusts to declare and pay back taxes by Oct. 22 to avoid late fees. The approach appears to be translating into greater clarity from regulators, with the STA publishing a question-and-answer series that suggested Beijing was implementing the rules in line with international practices.