BlockBeats news, on August 4, the Financial Times published an article stating that recently, some taxpayers have received notifications from the tax authorities, informing them that they need to declare overseas income and pay the corresponding taxes in accordance with the law. According to our country's individual income tax law, income from individual stock trading belongs to property transfer income and should be taxed at a rate of 20% on a per-instance basis.
Among them, individuals' income from stock trading in the domestic secondary market is temporarily exempt from individual income tax; there are no tax exemption regulations for income from stock trading conducted directly overseas, which needs to be declared and taxed in the year following the income acquisition.
Zhang Wei, Dean of the School of Taxation at Jilin University of Finance and Economics, explained that in order to collect taxes more reasonably, our tax authorities allow taxpayers to offset profits and losses within the tax year during tax management, but do not allow cross-year offsetting.
Paying taxes according to the law is an obligation that every citizen should fulfill. If an individual fails to declare or truthfully declare overseas income, in addition to being required by the tax authorities to pay back taxes, they will also incur late fees, and in severe cases, they may be subject to investigation by the audit department and face tax penalties. Taxpayers who find that they have previously underreported or failed to report overseas income in their individual income tax declaration should promptly correct it.