AsianFin -- Chinese tax authorities are stepping up oversight of individuals’ overseas income, with recent notices sent to taxpayers reminding them to declare and pay taxes on income from foreign stock trading, according to local media reports.

Under China’s Individual Income Tax Law, capital gains from stock transactions are classified as “property transfer income” and are subject to a 20% tax rate on a per-transaction basis.

While gains from trading shares on China’s domestic secondary market are currently exempt from personal income tax, no such exemption applies to income derived from trading stocks overseas, which must be declared and taxed in the following fiscal year.