Many friends are asking: if you make money, you have to pay taxes, but if you lose money, is there any subsidy? In Europe and the US, investment losses can be used to offset future profits, so it’s kind of like a subsidy. However, China’s tax authorities currently follow these four principles for overseas taxation: 1. Losses within China cannot offset overseas income This means that if you make money trading crypto but lose money buying A-shares domestically, you still have to pay taxes. 2. Losses from the current year can be deducted, but not carried forward to the next year This is the rule currently applied to U.S. investors: if you lose money this year, you won’t be taxed, but when you make a profit, you’ll pay taxes for that specific year. 3. Double taxation If you choose to comply with regulations and are an overseas tax resident but hold a Chinese passport, sorry—you’ll have to pay both Chinese taxes and overseas taxes. 4. Applicable tax rate: Lastly, some people are asking about the tax rate. For individual transactions, according to the "Individual Income Tax Law," property transfer income (such as selling houses, stocks, or virtual currencies) is uniformly subject to a 20% proportional tax rate. Some people also ask: if I invest through an overseas company, does that mean I’m in the clear? Well, overseas companies owned by Chinese citizens are still considered Chinese resident enterprises, and global income will be taxed at 25% by China. Lastly, the U.S. hasn’t joined CARF yet, so it won’t submit data to China. For U.S.-based ByteDance employees, data is submitted at the company level. So Coinbase is still safe～ Finally, wishing everyone a Happy Valentine’s Day! ❤️