Svmuu News: Two government departments have issued an announcement regarding matters related to individual income tax on offshore trusts. When an individual places assets into an offshore trust or receives income through an offshore trust, such income constitutes “income” as defined in Article 2 of the *Individual Income Tax Law of the People’s Republic of China*, and individual income tax must be reported and paid in accordance with the provisions of this announcement. For the purposes of this announcement, “offshore trust” refers to a trust established under foreign laws or other legal arrangements that perform trust functions. “Other legal arrangements with trust functions” refers to overseas legal arrangements that, while not established in the name of a trust, essentially perform functions similar to those of a trust; however, this excludes financial products issued by banks, insurance companies, securities firms, fund management companies, and other entities that are subject to regulation by the financial regulatory authorities of their respective countries or regions, conduct business independently for an unspecified clientele, and assume risks. (Jin Shi)