China's super-rich 'in shock' and hunting for cash as Beijing issues surprise tax on offshore trusts

CHINA - 2025/09/05: In this photo illustration, the 100-yuan RMB banknotes, a calculator and a Chinese national flag are placed on the table. Sopa Images | Lightrocket | Getty ImagesOffshore trusts have long been used by China's ultra-rich to tuck away hundreds of billions of dollars outside the country. Now, a move by Beijing to tax them has set off a rush to lawyers and a scramble for cash.For decades, the legal structure has been a favored vehicle of Chinese tycoons to hold everything from pre-IPO stakes to family fortunes — and their tax treatment in China was never spelled out. But on July 24, China's Ministry of Finance and tax authority issued the clearest rules yet on how they should be taxed.Now a 20% levy will be collected at nearly every stage of a trust's life, from establishment to profit distribution and termination. Families need to declare and pay outstanding amounts on assets transferred into such trusts since the start of 2023 by Oct. 22 — a total window of 90 days. Late declarations or non-payments could incur surcharges. That countdown has set off a scramble across Hong Kong and Singapore, popular destinations for China-linked families to set up trust structures...