Financial Times: Strengthen regulation of personal overseas income, income from buying and selling stocks abroad must also be taxed

ChainCatcher news, according to a report by Jinshi citing the Financial Times, it has been learned that recently some taxpayers have received notifications from the tax authorities, informing them that they need to declare their overseas income and pay the corresponding taxes in accordance with the law. "According to our personal income tax law, income from individual stock trading is classified as income from property transfer, and should be taxed at a rate of 20% on a per-instance basis.

Among them, income from stock trading in the domestic secondary market is temporarily exempt from personal income tax; however, there are no tax exemption provisions for income from stock trading conducted overseas, which must be declared and taxed in the year following the income acquisition," explained Zhang Wei, Dean of the School of Taxation at Jilin University of Finance and Economics. To ensure more reasonable tax collection, our tax authorities allow taxpayers to offset gains and losses within the tax year, but do not permit cross-year offsets. Paying taxes according to the law is an obligation that every citizen should fulfill.

If individuals fail to declare or truthfully report their overseas income, in addition to being required by the tax authorities to pay back taxes, they will also incur late fees. In serious cases, they may be subject to investigation by the auditing department and face tax penalties. Taxpayers who discover that they have underreported or failed to report overseas income in their previous personal income tax declarations should promptly correct it.