Shanwu Yuan

In brief For PRC-connected high-net-worth individuals, the long-held assumption that offshore trusts fall outside the immediate reach of PRC individual income tax (IIT) may no longer be sustainable. The landmark rules released on 24 July 2026 introduce an immediately effective look-through and life-cycle taxation and reporting regime for offshore trusts, potentially bringing years of historical arrangements under fresh scrutiny. The clock is already running.

In brief On 25 December 2025, the State Council issued the long-expected Value Added Tax (VAT) Law Implementation Rules (“Implementation Rules”), which enters into effect on 1 January 2026 along with the PRC VAT Law. In this client alert, we will highlight key provisions in the Implementation Rules that introduce significant changes to the prevailing VAT regime, and provide our observations and perspectives. Download the full version of China: Tax updates – VAT Law Implementation Rules.

In brief On 29 December 2023, the Standing Committee of the National People's Congress of the People's Republic of China promulgated the amended Company Law of the People's Republic of China (PRC or "China") ("2023 Company Law"), after its deliberation of four versions of draft amendments in the past three years. The 2023 Company Law will come into force on 1 July 2024.