According to the Individual Income Tax Law, the stock exchange is the income from the transfer of property, so there is no need to pay taxes.

According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Several Policy Issues concerning Individual Income Tax, the income from stock transfer of listed companies in China is not subject to individual income tax (it needs to be paid overseas).

To sum up, so if you are trading in the domestic stock market, the income is exempt from personal income tax.

The Individual Income Tax Law of the People's Republic of China is a national legal document of China approved by the NPC Standing Committee, China.

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Article 1 Individuals who have domicile in China or have no domicile but have resided in China for a total of 183 days in a tax year are individual residents. Individual income tax shall be paid in accordance with the provisions of this Law on income obtained by individual residents from inside and outside China.

Individuals who have neither domicile nor residence in China, or who have lived in China for less than 183 days in a tax year, are non-resident individuals. Income obtained by non-resident individuals from China shall be subject to individual income tax in accordance with the provisions of this Law.

The tax year begins on January 1st and ends on December 31st of the Gregorian calendar.

Article 2 Individual income tax shall be paid on the following personal income:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual income tax shall be calculated on a consolidated basis according to the tax year when individual residents obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income); Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly basis or by sub-item. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.

Article 3 The tax rate of individual income tax:

(1) For comprehensive income, an excess progressive tax rate of 3% to 45% shall apply (the tax rate table is attached);

(2) For operating income, an excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached);

(3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to a proportional tax rate of 20%.

Article 4 Individual income from the following items shall be exempted from individual income tax:

(1) Bonuses in science, education, technology, culture, health, sports, environmental protection, etc. awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the army level, and foreign organizations and international organizations;

(2) Interest on national debt and financial bonds issued by the state;

(3) Subsidies and allowances issued in accordance with the unified provisions of the state;

(four) welfare funds, pensions and relief funds;

(5) Insurance indemnity;

(six) demobilized soldiers, demobilization fees, pension;

(seven) in accordance with the unified provisions of the state to cadres and workers, resettlement fees, resignation fees, basic pension or retirement fees, retirement fees, retirement living allowance;

(8) Income from diplomatic representatives, consular officers and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws;

(9) Income exempted from tax as stipulated in international conventions and agreements signed by the China government;

(ten) other tax-free income stipulated by the State Council.

The tenth tax exemption provisions in the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.

Article 5 Individual income tax may be reduced under any of the following circumstances. The specific scope and time limit shall be stipulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government and reported to the Standing Committee of the people's congress at the same level for the record:

(a) the income of the disabled, the elderly and the martyrs;

(2) Having suffered heavy losses due to natural disasters.

The State Council can stipulate other tax reductions and report them to the NPC Standing Committee for the record.

Article 6 Calculation of taxable income:

(1) For the comprehensive income of individual residents, the taxable income shall be the balance after deducting expenses of 60,000 yuan from the income in each tax year and special deductions, special additional deductions and other deductions determined according to law.

(2) For the income from wages and salaries of non-resident individuals, the taxable income shall be the balance after deducting expenses of 5,000 yuan from the monthly income; Income from remuneration for labor services, remuneration for manuscripts and royalties shall be taxable.

(3) For operating income, the taxable income shall be the balance after deducting costs, expenses and losses from the total income in each tax year.

(4) If the income from property leasing does not exceed 4,000 yuan each time, the expenses shall be reduced by 800 yuan; If it is more than 4,000 yuan, 20% of the expenses shall be deducted, and the balance shall be taxable income.

(5) For the income from the transfer of property, the taxable income shall be the balance after deducting the original value of the property and reasonable expenses from the income from the transfer of property.

(six) interest, dividends, bonus income and accidental income, with the amount of income for each taxable income.

Income from remuneration for labor services, remuneration for manuscripts and royalties shall be the balance of income after deducting 20% of expenses. The amount of income from remuneration shall be reduced by 70%.

Individuals donate their income to public welfare charities such as education, poverty alleviation and poverty alleviation, and the part of the donation that does not exceed 30% of the taxable income declared by taxpayers can be deducted from their taxable income; If the State Council stipulates that donations to charitable causes shall be deducted in full before tax, such provisions shall prevail.

The special deduction specified in item 1 of the first paragraph of this article includes social insurance premiums such as basic old-age insurance, basic medical insurance, unemployment insurance and housing accumulation fund paid by individual residents in accordance with the scope and standards prescribed by the state; Special additional deductions, including children's education, continuing education, serious illness medical care, housing loan interest or housing rent, support for the elderly and other expenses, the specific scope, standards and implementation steps are determined by the State Council, and reported to the NPC Standing Committee for the record.

Article 7 Individual income tax paid abroad may be deducted from the taxable amount of income obtained by individual residents from outside China, but the amount of credit shall not exceed the taxable amount of the taxpayer's overseas income calculated in accordance with the provisions of this Law.

Article 8 Under any of the following circumstances, the tax authorities have the right to make tax adjustments in a reasonable way:

(1) The business dealings between individuals and their related parties do not conform to the principle of independent transactions, and the tax payable of individuals or their related parties is reduced without justifiable reasons;

(2) Enterprises controlled by individual residents, or established in countries (regions) where the actual tax burden is obviously low under the control of individual residents, have no reasonable business needs, and do not distribute or reduce the distribution of profits belonging to individual residents;

(3) Individuals obtain improper tax benefits by implementing other arrangements that have no reasonable commercial purpose.

If the tax authorities make tax adjustments in accordance with the provisions of the preceding paragraph and need to make up the tax, they shall make up the tax and charge interest according to law.

Article 9 Individual income tax shall be paid by the taxpayer, and the unit or individual who pays the income shall be the withholding agent.

If the taxpayer has a China citizenship number, the China citizenship number shall be the taxpayer identification number; If a taxpayer does not have a China citizenship number, the tax authorities shall give it a taxpayer identification number. When a withholding agent withholds tax, the taxpayer shall provide the withholding agent with the taxpayer identification number.

Article 10 Under any of the following circumstances, taxpayers shall file tax returns according to law:

(a) to obtain comprehensive income needs to be settled;

(2) There is no withholding agent for obtaining taxable income;

(3) Taxable income is obtained, and the withholding agent fails to withhold the tax;

(4) Obtaining overseas income;

(5) Cancellation of China household registration due to emigration;

(6) Non-resident individuals obtain wages and salaries from more than two places in China;

(seven) other circumstances stipulated by the State Council.

Withholding agents shall, in accordance with the provisions of the state, handle the declaration of full withholding of all employees, and provide taxpayers with information such as their personal income and tax withheld.

Eleventh individual residents to obtain comprehensive income, the annual calculation of personal income tax; If there is a withholding agent, the withholding agent shall withhold the advance tax on a monthly basis or every time; If it is necessary to settle accounts, it shall be settled within March 1st to June 30th of the following year. The withholding and prepayment measures shall be formulated by the competent tax authorities of the State Council.

Where individual residents provide special additional deduction information to withholding agents, withholding agents shall deduct the withholding tax in accordance with the provisions when withholding it monthly, and shall not refuse.

If a non-resident individual has a withholding agent for income from wages and salaries, income from remuneration for labor services, income from remuneration for manuscripts and royalties, the withholding agent shall withhold and pay taxes on a monthly basis or every time without making final settlement.

Article 12 Taxpayers shall calculate individual income tax on an annual basis after obtaining business income. Taxpayers shall submit tax returns to the tax authorities within 15 days after the end of each month or quarter, and pay taxes in advance. Settle the income before March 31st of the following year.

Taxpayers' income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be calculated on a monthly or quarterly basis. If there is a withholding agent, the withholding agent shall withhold and pay taxes on a monthly or quarterly basis.

Article 13 If a taxpayer obtains taxable income without a withholding agent, it shall submit a tax return to the tax authorities within 15 days of the next month after obtaining the income and pay the tax.

If the taxpayer obtains taxable income and the withholding agent fails to withhold the tax, the taxpayer shall pay the tax before June 30 of the following year after obtaining the income; If the tax authorities notify the taxpayer to pay within the time limit, the taxpayer shall pay the tax within the time limit.

Individual residents who obtain income from outside China shall declare and pay taxes within March 1st to June 30th of the following year.

Non-resident individuals who obtain income from wages and salaries from more than two places in China shall declare and pay taxes within 15 days of the following month.

Taxpayers who cancel their household registration in China due to emigration shall go through tax settlement before canceling their household registration in China.

Article 14 The tax withheld or withheld by withholding agents every month or every time shall be turned over to the state treasury within 15 days of the following month, and a declaration form for withholding individual income tax shall be submitted to the tax authorities.

Where a taxpayer settles the tax refund or the withholding agent settles the tax refund for the taxpayer, the tax authorities shall, after examination, handle the tax refund in accordance with the relevant provisions on the administration of the state treasury.

Fifteenth public security, the people's Bank, financial supervision and management departments should assist the tax authorities to confirm the identity of taxpayers and financial account information. Education, health, medical security, civil affairs, human resources and social security, housing and urban construction, public security, the People's Bank of China, financial supervision and management and other relevant departments shall provide the tax authorities with special additional deduction information such as taxpayer's children's education, continuing education, serious illness medical treatment, housing loan interest, housing rent, and support for the elderly.

If an individual transfers real estate, the tax authorities shall verify the personal income tax payable according to the relevant information such as real estate registration. When the registration institution handles the transfer registration, it shall check the tax payment voucher of personal income tax related to the transfer of real estate. Where an individual transfers equity to register for change, the market entity registration authority shall examine the tax payment voucher of individual income tax related to the equity transaction.

Relevant departments shall incorporate taxpayers and withholding agents' compliance with this law into the credit information system according to law, and implement joint incentives or punishments.

Article 16 The calculation of various incomes shall be in RMB. If the income is in a currency other than RMB, it shall be converted into RMB according to the central parity of RMB exchange rate to pay taxes.

Article 17 A handling fee of 2% shall be paid to the withholding agent according to the tax withheld.

Article 18 The specific measures for levying, reducing and stopping the individual income tax on the interest income from savings deposits shall be formulated by the State Council and reported to the NPC Standing Committee for the record.

Article 19 Taxpayers, withholding agents, tax authorities and their staff who violate the provisions of this Law shall be investigated for legal responsibility in accordance with the Law of the People's Republic of China on the Administration of Tax Collection and other relevant laws and regulations.

Article 20 The collection and management of individual income tax shall be implemented in accordance with this Law and the Law of the People's Republic of China on the Administration of Tax Collection.

Article 21 the State Council shall formulate implementation regulations in accordance with this Law.

Article 22 This Law shall come into force as of the date of promulgation.

References:

Baidu Encyclopedia: Individual Income Tax Law of the People's Republic of China