Enhance personal overseas income supervision, overseas stock trading income should also be taxed.

date
04/08/2025
According to the Financial Times, 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 our countrys personal income tax law, income from individual stock trading is considered as capital gains and should be taxed at a rate of 20% per transaction. Specifically, income from stock trading on the domestic secondary market is temporarily exempt from personal income tax; however, there is no tax exemption for income from stock trading conducted directly overseas, and it should be reported and taxed the following year, explained Zhang Wei, Dean of the Taxation College of Jilin University of Finance and Economics. In order to ensure a more reasonable collection of taxes, the Chinese tax authorities allow taxpayers to offset their gains and losses within the tax year, but do not allow offsetting across different tax years. Paying taxes in accordance with the law is the duty of every citizen. Individuals who fail to declare or inaccurately declare their overseas income may not only be required to pay additional taxes by the tax authorities, but may also face penalty fees and potential investigations by the audit department. Taxpayers who discover they have underreported or omitted their overseas income when filing their personal taxes should correct this mistake promptly.