Capital Gains Tax on Overseas Stocks Must Be Filed by June 1... National Tax Service Notifies 220,000 Taxpayers

Installment Payments Allowed for Tax Liabilities Exceeding 10 Million Won

Taxpayers who sold real estate, stocks, or other assets last year but did not file a preliminary return, or who made more than two transfers and failed to aggregate and report their total capital gains, must file and pay their final capital gains tax by June 1. For domestic stocks, only major shareholders or holders of unlisted shares are obligated to report, but for overseas stocks, anyone who has realized capital gains must file a final return.

The National Tax Service announced that starting May 4, it will send notification messages via mobile to approximately 220,000 taxpayers who are required to file a final return. Specifically, this includes 10,000 for real estate, 16,000 for domestic stocks, 182,000 for overseas stocks, and 11,000 for derivatives.

Taxpayers can file and pay electronically using Hometax (PC) or Sontax (mobile), or they can prepare a paper return and submit it to the tax office in charge of their place of residence.

Taxes to be paid voluntarily can be remitted to a virtual account after filing, or paid using a credit card, simple payment methods, etc. It is also possible to print a payment slip and pay at a financial institution. The service fee for credit card payment (0.7% of the tax amount, or 0.4% for debit cards) must be borne by the taxpayer.

Installment payments are also possible. If the capital gains tax owed is 20 million won or less, any amount exceeding 10 million won can be paid in installments by August 3. If the amount exceeds 20 million won, up to 50% of the total tax liability can be paid in installments by August 3.

The National Tax Service provides filing assistance services. If the taxpayer has already submitted a preliminary return, a pre-filled data service will be provided to ensure nothing is missed in the final filing.

In particular, from this year, if the tax rate can be determined with the entered information such as the type of asset, acquisition and transfer dates, it will be automatically filled in. If the tax rate cannot be determined, an interactive Q&A system will help taxpayers identify and enter the correct tax rate.

Supporting documents for the return can be easily submitted via Sontax by taking a photo with a smartphone camera, or by fax using a virtual fax number assigned to the taxpayer.

An official from the National Tax Service stated, "If eligible taxpayers fail to file by the deadline (June 1), a penalty of 20% of the unpaid tax amount will be imposed for failure to file, and a late payment penalty of 0.022% per day will be charged on any unpaid tax. If a taxpayer intentionally files false information or attempts to evade taxes through irregular transactions, a rigorous tax audit will be conducted to thoroughly verify the facts."

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