NH Investment & Securities Launches Customer Choice Option for Overseas Stock Capital Gains Tax Saving Strategies

NH Investment & Securities announced on the 24th that it will launch the industry's first 'Overseas Stock Capital Gains Tax Saving Strategy Customer Choice' service.

The Overseas Stock Capital Gains Tax Saving Strategy Customer Choice service allows customers to select the method for calculating capital gains tax on overseas stocks, launched to support investors' strategic investment decisions.

NH Investment & Securities previously only offered the First-In, First-Out (FIFO) method, but through this innovative approach, it will provide investors with greater flexibility in capital gains tax calculation. The FIFO method calculates taxes based on the principle that "the first stocks bought are the first sold," considering the earliest purchased stocks as sold first. In contrast, the Moving Average method calculates the average purchase price of stocks regardless of the purchase timing and applies this average uniformly to all sales. Each method reflects stock trading records differently at specific points in time, but since the final capital gains are the same for identical transactions, issues such as tax evasion do not arise.

The service is available through NH Investment & Securities' Mobile Trading System (MTS) and Home Trading System (HTS) and will be applied starting from the 2024 tax year. However, if switching from the existing FIFO method to the Moving Average method, the change will apply from the 2024 tax year, and reverting back to the FIFO method will not be allowed.

Through the launch of the overseas stock capital gains tax customer choice service, NH Investment & Securities expects strategic tax management for its customers and plans to continue providing various services for customer convenience. Lee Jae-kyung, Head of the Retail Business Division, stated, "This service is designed to support tax optimization according to individual customers' investment strategies," adding, "We plan to continuously develop customized tax strategies in line with market changes and provide high convenience to customers through a series of processes including capital gains tax filing agency services."

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