(Yicai) Oct. 26 -- Tax authorities in Beijing and Qingdao have ordered 25 individuals to declare and pay outstanding offshore trust taxes as China steps up enforcement under new rules.

Public announcements by local tax authorities show that 21 individuals received notices in Beijing and four in Qingdao, Yicai learned.

Offshore trusts allow individuals to hold and manage wealth overseas, but they do not exempt them from Chinese taxes. Rules introduced in July gave taxpayers until Oct. 22 to settle unpaid taxes without late payment surcharges. With that deadline passed, authorities are now publicly identifying individuals and seeking outstanding payments.

A district tax office in Beijing announced recently that it had publicly served tax notices on 21 individuals. The notices, all dated Oct. 20, will be deemed served after 30 days, and those who fail to submit documents or pay outstanding taxes face legal action under China's tax collection laws.

In eastern China's Qingdao, tax authorities issued notices to four individuals on Sept. 29 and Oct. 10, requiring them to verify their overseas financial account information, submit relevant documents, and file tax declarations.

China's finance ministry and the State Taxation Administration jointly issued the rules in July, requiring residents to settle unpaid taxes on assets transferred into offshore trusts between Jan. 1, 2023 and Dec. 31, 2025. For non-residents, the rules cover transfers between Jan. 1, 2023 and July 24, 2026.

Tax authorities may extend the period for recovering large amounts of unpaid personal income tax under China's tax collection law, according to the new rules.

Editors: Tang Shihua, Emmi Laine