As China trust-tax deadline looms, wealthy clients explore options across Asia

[SINGAPORE] One month after China tightened its tax rules on offshore trusts, wealthy Chinese are racing to assess their tax exposure and rethink cross-border structures, sending ripples across Singapore and the region’s wealth management industry ahead of an October deadline.

Lawyers and wealth advisers said clients are grappling with not only how to value assets and raise cash to settle their tax bills, but also what options they have for structuring their offshore wealth over the longer term.

“Most clients underestimate the scope… You are looking at asset schedules, distribution histories, beneficiary details and more,” said Windson Li, co-head of tax, Asia, DLA Piper, noting that the firm has been busy on this front, with the work “a mix of everything”.