Group 1 - The core viewpoint of the article highlights the recent increase in notifications for Chinese residents regarding the need to pay individual income tax on cross-border investment income, particularly for those investing in Hong Kong and US stocks [1][2][5] - The notifications have expanded from first-tier cities to economically active regions such as the Yangtze River Delta and the Pearl River Delta, indicating a broader enforcement of tax compliance [1][5] - The tax obligations for cross-border investments are based on existing laws that require Chinese residents to declare and pay taxes on global income, including overseas investment earnings [2][3] Group 2 - The rise in the number of individuals being prompted to pay taxes is attributed to the implementation of the Common Reporting Standard (CRS), which facilitates automatic exchange of financial account information between countries [5][6] - The CRS allows Chinese tax authorities to access data on residents' overseas financial accounts, enhancing their ability to identify unreported foreign income [5][6] - Taxpayers are required to self-assess their income from overseas investments and report it to the tax authorities, as the CRS does not provide information on whether accounts are profitable [6] Group 3 - The tax rate for capital gains from stock trading and dividend income for individual investors is set at 20% according to Chinese tax law [7][8] - For overseas investments, there are no exemptions from capital gains tax, meaning that individuals must pay the 20% tax on profits from foreign stock sales [7][8] - Dividend income from US stocks is subject to a 10% tax rate, which is typically withheld by brokers [8] Group 4 - Currently, there is no provision for offsetting gains against losses in the taxation of capital gains from stock trading, although some local tax authorities may allow for netting within the same tax year [9][10] - Taxpayers are advised to maintain detailed records of their transactions and seek professional assistance if their investment activities are complex [11][12] - It is recommended that investors stay informed about tax law changes and maintain good communication with tax authorities to ensure compliance [13]