Shanghai Securities News China Securities Network (Reporter Wang Youruo) Recently, rumors have been circulating online about "starting to collect taxes on speculation in US stocks this year, and starting at the latest next year" and "domestic taxpayers who obtain overseas income must declare it.". Shanghai Securities News reporter noticed that some industry insiders have clarified this on social media platforms.
Xu Li, Vice President of Futu Holdings, stated that there were obvious logical loopholes in some market discussions regarding overseas income tax declaration. Xu Li said, "Firstly, Futu has confirmed with regulatory authorities that there is no special work to tax customers' overseas investments, nor is there any targeting of Futu's customers." "The basic requirement is that customer information does not leave the country, and Futu does not, nor does it need to, violate relevant laws and regulations by providing any customer information and fund details to third parties."
Secondly, Xu Li stated that the financial institutions with the clearest income data are banks, not securities firms. "The asset changes of securities firms are complex, including various corporate actions such as deposit and withdrawal, stock transfer, investment profits and losses, dividend payouts, etc. Each securities firm has different calculation methods and rules, and reviewing through securities firms' channels is not feasible."
Once again, the Common Reporting Standard (CRS) is an information exchange agreement between countries and regions, which is independent of the nature of the enterprise. Xu Li said, "The same rules and consistent regulatory principles apply to all securities firms engaged in business, so they will not target Futu's customers."