加强个人境外收入监管！央行主管媒体发声

Core Viewpoint - The recent regulatory changes in China regarding taxation on overseas income, particularly from stock trading, are aimed at enhancing compliance and monitoring of high-net-worth individuals and their cross-border financial activities [1][4]. Taxation on Overseas Stock Trading - Income from overseas stock trading is classified as property transfer income and is subject to a 20% tax rate [1]. - Taxpayers are allowed to offset gains and losses from overseas stock trading within the same tax year, but cross-year loss offsetting is prohibited [2]. Regulatory Mechanisms - China has joined the OECD's Common Reporting Standard (CRS), enabling automatic exchange of financial account information with over 150 jurisdictions [3][7]. - The tax authorities can access detailed information on residents' overseas financial accounts and cross-reference it with income tax declarations [7]. Monitoring and Compliance - High-net-worth individuals are now a focus for tax authorities, with increased scrutiny on their overseas income and financial activities [6]. - The monitoring includes income from selling overseas financial assets, overseas equity investments, and other related income sources [6]. Policy Background - The new regulations align with international practices, as major economies like the US and Germany also tax overseas stock trading income [4]. - The implementation of the Golden Tax Phase IV system by the end of 2024 will further enhance the monitoring of cross-border capital flows [7]. Impact on Market Behavior - The stricter regulations are expected to increase compliance costs for high-net-worth individuals, particularly celebrities and major shareholders [10]. - There is a growing demand for compliant investment channels, with investors shifting towards legal investment tools to optimize tax burdens [10]. - The number of investors using compliant channels for cross-border asset allocation is projected to increase by 37% year-on-year by 2025 [11].