Yicai: Investors in multiple regions required by tax authorities to pay back taxes on overseas investment income, taxable income mainly from 2022 and 2023

According to Foresight News, citing Yicai, informed sources in Beijing, Shanghai, Hangzhou, and other regions who were notified to pay back personal income tax on overseas investment income said they recently received notices from tax authorities requiring them to pay back taxes on overseas investment income. The taxable income for back taxes is mainly from 2022 and 2023. Previous reports indicated that the back tax collection period spans the past three years. Recently, Chinese tax authorities have required individual residents to pay back taxes on overseas investment income earned between 2022 and 2024. Taxable income types include capital gains, dividend income, and interest income from investments such as overseas stocks, funds, and bonds. Capital gains and dividend income are typically taxed at a rate of 20%. Losses incurred during the year can offset other capital gains, but individuals must declare them and provide transaction records. In certain scenarios, such as U.S. stock dividends, foreign tax credits may apply, but proof of tax payment must be provided. Previously, some individual investors shared on social media their experiences of voluntarily declaring and paying back taxes of nearly RMB 600,000 due to investments in U.S. bonds and stocks.