China's taxation policy on overseas stock trading has highlighted regulatory intensity and institutional logic through typical cases in recent years. In 2025, tax authorities in Hubei, Shandong, and other regions pursued tax collection from taxpayers who failed to declare overseas income. In Shandong, Mr. Zhang was still required to pay 1.2638 million yuan in taxes and late fees due to overseas investment losses, reflecting the taxation rule of 'annual accounting without retrospective across years'. In this case, although Mr. Zhang incurred an overall loss, there were profitable transactions in certain years, and the tax authorities calculated taxes based on single-year earnings, revealing the practical principle of 'annual profit and loss offsetting'.

The CRS information exchange mechanism has become a regulatory tool. Cases in 2025 involving Mr. Chen in Shanghai and Mr. Chen in Zhejiang showed that tax authorities accurately pursued taxes after obtaining overseas account data through CRS, with amounts involved ranging from 120,000 to 1.41 million yuan. A U.S. stock investor with an account balance of only 200,000 USD was still summoned for questioning, confirming that regulation does not set a monetary threshold and focuses on the trading behavior itself.

The execution of policies has exposed cognitive biases among investors. Some investors mistakenly extended the A-share tax exemption policy to overseas investments or concealed earnings through offshore structures. For example, an investor holding U.S. stocks through an overseas company was pursued for taxes due to failing to declare tens of millions of dollars in earnings. Meanwhile, Hong Kong Stock Connect investors benefited from a tax exemption policy before 2027, leading to a doubling of mainland investments through Hong Kong Stock Connect in the first half of 2025, demonstrating the policy's effect in guiding capital backflow.

These cases confirm that China is reconstructing the cross-border tax order through 'technological penetration + international cooperation'. After the Golden Tax Phase IV system connected with CRS data, tax cases in 2025 covered areas with concentrated high-net-worth populations such as Beijing and Shanghai, with single cases reaching a maximum of 1.41 million yuan in tax recovery. In the future, as digital currencies are included in the CRS exchange scope, the space for concealing overseas assets will be further compressed.