Financial Times: Income from buying and selling stocks overseas must also be taxed, strengthening the regulation of personal overseas income.

On August 4, the Financial Times published an article stating that recently some taxpayers have received notifications from the tax authorities informing them of the need to declare 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 categorized as capital gains and is subject to a 20% tax rate on a per-transaction 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 earned from direct stock trading abroad, which must be declared in the year following the income acquisition," explained Zhang Wei, Dean of the Taxation School at Jilin University of Finance and Economics. To collect taxes more reasonably, our tax authorities allow taxpayers to offset gains and losses within the same 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 inaccurately declare their overseas income, in addition to being required by the tax authorities to pay back taxes, they will also incur late fees, and in serious cases, may be investigated by the inspection department, facing tax penalties. If taxpayers find that they have underreported or omitted overseas income in their previous income tax declarations, they should make timely corrections. (Jin10)