Recently, many friends who have invested overseas have received calls urging them to pay back taxes, ranging from a few thousand to over a million. Even Cat Brother received a call. To be honest, unless it's a large amount, it's really better to trade domestically.

If you have opened an overseas account to invest in foreign stock markets, according to the "Announcement on Individual Income Tax Policies Related to Overseas Income," you do indeed have to pay a 20% capital gains tax, and this part is not combined with domestic income, it is paid separately.

What does this mean? For example, if I open an overseas account in Hong Kong and I make a profit, I need to pay 20% individual income tax on the profit. If there are dividends, I also have to pay 20%. In short, as long as there is profit, I have to pay.

Just yesterday, I was talking to a friend about something very interesting. A friend had 1 million, lost 500,000 this year, and did not need to pay taxes. Next year, if it doubles back to 1 million, then he has to pay 500,000 * 20% = 100,000. Over two years, he neither lost nor earned in the stock market, but he paid 100,000 in taxes.

For small to medium-sized capital, it is still recommended to trade domestically. The Hong Kong Stock Connect and ETFs can meet the needs of most people. Previously, many people did not pay taxes just because the checks were not stringent. It is not difficult to find out who has overseas accounts.

$Ping An Insurance (SH601318)$