"Major Shareholders Must File and Pay Capital Gains Tax on Domestic Shares by March 3"

NTS Launches "Pre-filled Stock Capital Gains Tax Service"
New "Non-taxation Self-diagnosis" Service Introduced This Year

Major shareholders and others who transferred domestic shares subject to capital gains tax in the second half of 2025 (July to December) must pay capital gains tax by March 3 next year. Most investors who trade domestic listed shares on the on-exchange market are small shareholders and are not required to file stock capital gains tax returns.

The National Tax Service announced on the 3rd that, starting from the 4th, it will sequentially send guidance notices for "preliminary filing of stock capital gains tax" via mobile alerts (such as KakaoTalk). For those who do not receive mobile alerts due to refusal of messages and for taxpayers aged 60 or older, additional guidance will be sent by mail on the 10th. Those required to file are: (i) major shareholders who transferred listed shares, (ii) small shareholders who traded listed shares over-the-counter, and (iii) shareholders who transferred unlisted shares.

National Tax Service building. The Asia Business Daily DB

A person qualifies as a major shareholder if, as of the last day of the fiscal year immediately preceding the fiscal year that includes the transfer date, their shareholding ratio (1% or more for KOSPI, 2% or more for KOSDAQ, or 4% or more for KONEX) or market capitalization meets the major shareholder threshold (500 million won or more), or if they meet the shareholding ratio requirement through share acquisitions made after the end of the preceding fiscal year.

To support taxpayers in making accurate filings, the National Tax Service is using data collected from securities companies to provide those subject to preliminary filing of stock capital gains tax with information on whether they are required to file and how to file.

Through Hometax, the National Tax Service provides a pre-filled stock capital gains tax service so that taxpayers can file their capital gains tax on their own. This year, an automatic aggregation function for transfer amounts of the same stock on the same date has been added to the Hometax filing screen. In addition, a new "non-taxation self-diagnosis" service has been introduced, enabling taxpayers to check, before filing, whether their stock capital gains qualify for non-taxation under the special tax treatment for contributions to start-ups and similar entities.

An official from the National Tax Service said, "After filing, we will conduct post-verification for those suspected of inaccurate filing by thoroughly analyzing the reported details," adding, "We ask taxpayers to recognize that faithful filing is the best way to minimize tax burdens and to file their taxes faithfully."

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