Shinhan Financial Investment Publishes 2nd Edition of 'Financial Investment Income Tax Guide'

[Asia Economy Reporter Lee Jung-yoon] Shinhan Financial Investment announced on the 4th that it has published the 2nd edition of the industry’s first “Easy-to-Understand 2023 Financial Investment Income Tax” guidebook to help customers understand the newly implemented financial investment income tax system starting in 2023.

The financial investment income tax is a tax imposed on residents under the Income Tax Act who earn income from financial investment products such as domestic and foreign stocks and bonds, Exchange-Traded Funds (ETF), and funds starting in 2023. This new tax system includes gains from domestic stock trading, which were previously untaxed. Almost all income generated from financial investment products is subject to taxation, and the guide includes information on the new tax system such as loss offsetting and the five-year carryforward deduction of deficits.

In February, Shinhan Financial Investment proactively published the Easy-to-Understand 2023 Financial Investment Income Tax guidebook. It is composed of six sections: taxes related to financial investment products, the withholding tax system for financial investment income tax, preliminary and final tax returns, managing financial investment income, Q&A, and more. Additionally, it provides a separate guide on how to use the financial investment income tax simple calculator embedded in the Shinhan Alpha application, which Shinhan Financial Investment was the first in the industry to launch.

The newly published 2nd edition reflects the revised enforcement decree and enforcement rules and partially modifies the existing content. The calculation of income from derivative products is separately explained, and the newly established application procedure for the combined taxation of financial investment income for tax-preferred products under the Restriction of Special Taxation Act is also introduced. The Q&A section has been supplemented with more diverse content, and an appendix has been added to introduce major legal forms related to financial investment income tax. The revised Easy-to-Understand 2023 Financial Investment Income Tax guidebook is available at Shinhan Financial Investment branches.

Jung Kyu-ho, head of the Financial Investment Income Team at Shinhan Financial Investment and the author, stated, “As the implementation of the financial investment income tax system approaches, we reflected the amended laws and regulations as quickly as possible. We hurried to publish the 2nd edition to serve as a reference for tax practitioners and a wise investment assistant for investors.”

This content was produced with the assistance of AI translation services.