Legal analysis: family trust fund income is not taxed. Family trust fund can not only protect family business from being weakened by division, but also play a great role in avoiding inheritance tax, ensuring the life of family members, risk isolation, hiding family fortune and distribution mechanism.

Family trust funds are highly subjective. Usually, if the founder stipulates that the fund cannot be dissolved, even if all beneficiaries agree, it cannot be dissolved. In this case, no matter how the relationship between asset owners changes, it will not affect the development of the enterprise at all.

Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC), the following personal income shall be subject to individual income tax:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.