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  • Guide for Reporting Overseas Financial Accounts
    • Date : 2021.06.17
    • Views : 639

The Office of the Foreign Investment Ombudsman would like to share with you the following information provided from the National Tax Service of Korea, concerning the reporting of overseas financial accounts.

 

 

 

                                                    Report of Overseas Financial Accounts

 

(Overview) From June 2011, residents or domestic corporations holding an overseas financial account opened at an overseas financial company, shall file information on the account if the aggregate balance exceeds KRW 500 million for any last day of a month of the relevant year. 

 

 

(Who Must Report)
○ Subjects for disclosure are residents and domestic corporations. 
    - Principally, a resident is any individual who has his/her domicile in Korea or a place of residence for 183
      days or more in Korea 

   - If the nominal owner and the actual owner of an account are different, both are subject to report. 
     If the account has joint owners, all of the owners are subject to report.

Persons and entities exempt from reporting are as follows. 
   - A foreign resident who has/had his/her domicile or place of residence in the Republic of Korea 
     for not more than five years in total from ten years before the end of the relevant year subject to report.

   - A Korean national residing abroad* in whose case the total period of having a residence in the Republic of
     Korea from one year before the end of the relevant year subject to report is not more than 183 days.

        * as defined in subparagraph 1 of Article 2 of the Act on the Immigration and Legal Status 
           of Overseas Koreans. 

   - Public organizations, financial companies, and other entities under the management and 
     supervision of the State. 

   - A person whose confirmation of information on his/her overseas financial account becomes available
     hrough a report by another person among the persons related to overseas financial accounts. 

   - A related person refers to the nominal and actual owners in cases of an account, etc. among the Overseas
     financial accounts whose nominal holder and actual owner are different, and each of respective persons
     under a joint name in cases of a joint checking account

 

 

(Objects for Disclosure)
Accounts subject to report: any bank, securities, securities derivatives or other financial instruments accounts
                                                which is opened in the name of an overseas financial company.

Assets subject to report: all assets owned in the accounts subject to report.

 

 

(Contents of Reporting)
Information on the identity of the account holder, such as name, address, etc.;
Information on the account held, such as account number, name of the financial company,
   the highest amount of the remaining balance of the account on the last day of each month.

Information on a person related to the overseas financial account

 

 

(How to Report)
Taxpayers subject to report should filed the ‘Report of Overseas Financial Accounts’ to the competent tax office in June 30.
     ■ E-filing is also available in Hometax (http://www.hometax.go.kr/)

 

 

 

* As Korea has made changes in the taxation system, in particular the amendments made in Dec. 2020, residents or domestic corporations having an account opened at an overseas virtual asset service provider is required to report virtual asset transactions. The virtual asset transactions include trading virtual assets as well as other similar assets, as described in Act on Reporting and Using Specified Financial Transaction Information. The new rule applies from Jan, 1st, 2022, with tax reporting required from June 2023.

 

 

Please visit the webpage of the National Tax Service explaining the reporting system; https://www.nts.go.kr/nts/cm/cntnts/cntntsView.do?mi=2513&cntntsId=7819 as well as the attached guide for your information.

 

 

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