Financial Times: Overseas stock trading income also subject to taxation, strengthening supervision of individual overseas income

According to a report by FX678, the Financial Times published an article stating that recently some taxpayers have received notices from the tax authorities informing them that they need to declare and pay taxes on their overseas income in accordance with the law. According to China's personal income tax law, income from individual stock trading is considered as income from property transfer and should be subject to a 20% tax rate. Income from stock trading on the domestic secondary market is temporarily exempt from personal income tax, while income from stock trading conducted directly overseas is not exempt and should be declared and taxed in the following year. Zhang Wei, dean of the School of Taxation at Jilin University of Finance and Economics, explained that in order to collect taxes more reasonably, the tax authorities allow taxpayers to offset profits and losses within the tax year, but do not allow offsetting across years. It is the duty of every citizen to pay taxes in accordance with the law. Individuals who fail to declare or truthfully declare their overseas income may not only be required to pay back taxes by the tax authorities, but may also be subject to late payment penalties. In serious cases, they may also be investigated by the inspection department and face tax penalties. Taxpayers who discover that they have underreported or omitted their overseas income when filing their taxes should correct it promptly.

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