On the Futu account interface, click “My Tax Documents,” and you will see two files:

One is the annual statement (annual statement.xlsx)

One is automatic exchange of financial account information (CRS information—see the second file)

This CRS file is reported by Hong Kong financial institutions to the Hong Kong Tax Department, and then exchanged by the Hong Kong Tax Department with the State Taxation Administration. Currently, we can only see the data for the 2025 tax year.

What data does CRS actually exchange?

CRS generally reports five numbers (gross receipts basis; it does not involve cost deductions):

The ending balance or net value of a financial account

Dividends (pure dividend income)

Interest (pure interest income)

Estimated amount (i.e., the total gross proceeds from selling or redeeming financial assets)

Other income

Important reminder:

Dividends and interest are pure income; you can file your individual income tax using these figures directly (involving foreign withholding tax, which may be creditable).

The estimated amount is not net profit; it is the total amount you sold (or redeemed) financial assets. It covers all financial assets, including stocks, money market funds, and more.

A real example of stock trading (the easiest place to get confused)

Assume you did the following:

Bought stock for 1 million

Sold stock for 3 million

The data exchanged back by CRS is:

Only shows the total sale amount of 3 million (inflow data)

It will not show your actual net gain (a net gain of 2 million is not exchanged)

It also does not show your purchase cost.

Reason: CRS only handles the exchange of original capital flow data (original capital exchange data). It does not perform financial calculations or determine your actual profit/loss. After receiving the data, the tax authority cannot directly tell how much you earned from buying and selling your stocks.

Especially if you frequently do short-term trades within the year, the total sale amount shown by CRS can be very large—but this is not net profit; it is only the annual total sale amount.

What should you pay attention to when filing your taxes?

CRS data only reports the annual totals, not transaction details.

For income involving overseas stock, funds, etc. transactions, you need to organize the materials yourself, calculate the actual profit/loss, and then file.

The tax authority does not know how much you actually earned. You must calculate your costs and gains yourself.

“Proceeds from sale” includes sale/redemption activities for all financial assets, not just stocks.

Final reminder

Today is around June 24, and there is less than a month left until the individual income tax filing deadline. After seeing the CRS data, it is recommended that you verify and prepare your filing materials as soon as possible.

Summary:

CRS exchanges your Hong Kong account closing balance + dividends + interest + total sale amount to the mainland tax authority, but it does not tell you how much you actually earned. You need to calculate the net gain yourself for filing.

#CRS #taxcompliance #overseasassets #individualincometaxfiling