According to ChainCatcher, the Financial Times reported that recently, some taxpayers have received notifications from tax authorities requiring them to legally declare overseas income and pay the corresponding taxes. "According to our country's individual income tax law, personal stock trading income belongs to property transfer income and should be taxed at a rate of 20% per transaction.
Among these, personal stock trading income in the domestic secondary market is temporarily exempt from individual income tax; however, there are no tax exemption provisions for direct stock trading income overseas, which needs to be declared and taxed in the year following the income generation," explained Zhang Wei, Dean of the Tax Academy at Jilin University of Finance and Economics. To ensure more reasonable taxation, the tax authorities allow taxpayers to offset profits and losses within the same tax year, but do not permit cross-year offsetting. Paying taxes according to law is a duty of every citizen.
If individuals fail to declare or do not truthfully declare overseas income, they will not only be required by tax authorities to make up for unpaid taxes but will also be charged late fees. In severe cases, they may face investigation by the tax inspection department and potential tax penalties. Taxpayers who discover they have previously under-reported or omitted overseas income in their tax declarations should promptly make corrections. (Jin Shi)
