Ministry of Finance Responds to Issues Regarding Adjustment of Original Value of Assets for Residents Who Have Not Paid Taxes

The Ministry of Finance has released a Q&A on the personal income tax policy for offshore trusts, clarifying that when residents do not pay personal income tax during the contribution phase, the original value of the assets will not be adjusted to the market value at the time of contribution. According to relevant regulations, if the market value of the assets at the time of contribution to the offshore trust is lower than the original value of the assets, or if the tax amount during the contribution phase exceeds the collection period, residents will still confirm the original value of the assets based on the price at which they acquired the assets.

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