Financial Times: Strengthen the supervision of individual overseas income, and taxes are required for overseas purchase and sale of stocks

According to Foresight News, the Financial Times published an article saying that it is understood that recently a taxpayer has received a notice from the tax department informing them that they need to apply for overseas income declaration and pay the corresponding taxes in accordance with the law. Individuals who fail to declare or fail to truthfully declare overseas income will not only be required by the tax authorities to pay the tax, but will also be charged a late payment fee. In serious cases, they may also be investigated by the inspection department and will face tax penalties. If a taxpayer finds that he underreported or underreported overseas income when he declared his personal income tax, he should make timely corrections.

China has participated in the automatic exchange of tax-related information in international financial accounts, namely CRS. This is the global automatic exchange of tax information developed by the Organization for Economic Cooperation and Development (OECD). Using CRS, you can obtain relevant data on residents' personal overseas financial accounts. By comparing with personal income tax declaration data, the tax department can accurately discover whether residents have underreported overseas income. The reporter noticed that at the end of March this year, taxation departments in Hubei, Shandong, Shanghai, Zhejiang and other places released cases of risk response to taxpayers who have obtained overseas income but have not declared personal income tax in accordance with the law.

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