China clarifies individual income tax on offshore trusts; Samsung, SK Hynix sign US$950 billion chip deals
China's Ministry of Finance and the State Taxation Administration announced on July 24 that residents must report and pay individual income tax on assets transferred to offshore trusts and on income generated during the trust's term. Separately, South Korean presidential adviser Kim Yong-beom said on Saturday that Samsung Electronics and SK Hynix have secured long-term memory chip supply agreements with US tech firms including NVIDIA and Broadcom worth a combined US$950 billion. SK Hynix's US-bound supply amounts to US$750 billion, while Samsung signed a US$200 billion contract with Broadcom.
On July 24, the Ministry of Finance and the State Taxation Administration issued a notice clarifying matters related to individual income tax on offshore trusts. According to the notice, residents transferring assets into offshore trusts, as well as income generated during the ongoing period of the offshore trust, must be reported and individual income tax paid in accordance with regulations.
On Saturday, South Korean presidential adviser Kim Yong-beom said Samsung Electronics, SK Hynix and US tech giants including NVIDIA and Broadcom have reached long-term memory chip supply agreements totalling US$950 billion. Of this, SK Hynix's supply to the US stands at US$750 billion, while Samsung signed a US$200 billion chip supply contract with Broadcom.
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