Does China Tax Overseas Stock Gains?

On June 17, 2024, a screenshot began circulating online, purportedly showing a "friendly reminder" from the Chinese tax authorities regarding the declaration of overseas stock income.

After sharing this information on Xiaohongshu, we received a flood of inquiries from followers about how overseas stock income is taxed. Many argued that the Individual Income Tax Law of the People's Republic of China and related regulations do not explicitly address overseas stock gains, leaving room for debate. Some even claimed that China does not tax overseas stock income at all.

To clarify whether China taxes overseas stock income, this article reviews the evolution of China's Individual Income Tax Law and related regulations concerning stock income. We will also explore the controversies surrounding this issue and provide our perspective.