Group 1 - The recent notifications from tax authorities regarding the need for individuals to declare overseas income and pay corresponding taxes have raised significant attention among investors trading foreign stocks [1] - According to the current tax law, profits from stock trading are classified as capital gains and are subject to individual income tax, regardless of whether the income is derived from domestic or foreign sources [1] - The applicable tax rate for various income types, including capital gains, is set at 20% under the current tax regulations [1] Group 2 - In practice, losses can offset gains within the same tax year for overseas income, allowing for net income taxation on the same trading account [2] - Only stock transfers through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are exempt from taxes, while other foreign stock transfers do not enjoy tax benefits [2] - Taxpayers are advised to comply with tax authority notifications and promptly declare any undeclared or underreported income to avoid penalties, including late fees and potential investigations [2]