Income from personal overseas stock trading must be declared with a 20% individual income tax, and profits and losses can be offset within the year.

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 personal stock trading is considered income from the transfer of property and should be taxed at a rate of 20% on a per-transaction basis.

Among them, individuals are temporarily exempt from personal income tax on stock trading income in the domestic secondary market; there are no tax exemptions for stock trading income conducted directly overseas, and tax must be declared in the year following the income acquisition.

Zhang Wei, the dean of the School of Taxation at Jilin University of Finance and Economics, explained that in order to collect taxes more reasonably, our country's tax authorities allow taxpayers to offset profits and losses within the same tax year during tax administration, but do not permit cross-year offsets.

Paying taxes in accordance with 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. In severe cases, they may be subject to an investigation by the auditing department and face tax penalties. If taxpayers discover that they have underreported or failed to report overseas income in their previous income tax declarations, they should promptly correct it.