according to the Financial Times, taxpayers have recently received notifications from the tax authorities informing them that they need to declare and pay taxes on overseas income in accordance with the law. "According to China's personal income tax law, income from individual stock trading is considered income from property transfer and should be subject to a 20% tax rate. Income from stock trading on the domestic secondary market is temporarily exempt from individual income tax; there is no tax exemption for income from direct stock trading overseas, and it needs to be declared and taxed the following year after obtaining the income," explained Zhang Wei, Dean of the Taxation College of Jilin University of Finance and Economics. In order to collect taxes more reasonably, the Chinese tax authorities allow taxpayers to offset profits and losses by tax year, but do not allow offsetting across years. Paying taxes according to the law is the duty of every citizen. Individuals who fail to declare or truthfully declare overseas income may not only be required to pay additional taxes by the tax authorities, but may also be subject to late payment penalties. In serious cases, they may also be subject to inspection by the auditing department and face tax penalties. If taxpayers discover that they have underreported or omitted reporting overseas income when filing their personal income tax returns, they should make corrections promptly.