Hello~ If you are interested in financial technology, you can easily find people who are investing in US stocks.
Those of you who are reading this article must have clicked because they were investing directly in overseas stocks or had to pay taxes.
But did you know that if you made a profit by selling foreign stocks last year, you have to file a tax return yourself?
So, today, I would like to tell you about the method, deadline, and documents for filing foreign stock capital gains tax, which will be helpful to those who directly buy and sell overseas stocks.
I’ll also give you some tips on how to save on transfer tax every year.
Subjects to foreign stock capital gains tax
Capital gains tax on foreign stocks is a tax on the difference in market value (investment income) generated by buying and selling foreign stocks. If you have earned more than KRW 2.5 million in stocks or ETFs in one year, you will be subject to capital gains tax.
The standard of 2.5 million won is not a valuation loss standard, but a [confirmed realization amount standard]. Capital gains tax is not levied if the income is over 2.5 million won, and 22% is taxed if the profit is over 2.5 million won.
ex) 5 million won – 2.5 million won (deductible amount) = 5 million won in US stocks for 1 year
22% capital gains tax of 2.5 million won = 550,000 won paid. 해외주식 양도소득세 신고 방법
In my case, I have to pay capital gains tax this year too.
Deadline for capital gains tax on foreign stocks
The deadline for filing foreign stock capital gains tax is [May 1 to May 31].
If you do not file your income tax return within this period, you will be subject to a penalty of up to 20% for failure to report.
How to report foreign stock capital gains tax
These days, most of them conveniently leave it to the brokerage firm. using multiple brokerage.
If you were unable to apply for the reporting service in April due to unavoidable circumstances, it is better to do it yourself.
To report overseas stock capital gains tax, you can file an electronic return through [National Tax Service Home Tax].
After logging in to Hometex, click [Transfer income tax] in the center.
Click here for the transfer income tax e-filing.
Confirmation Report – Click Regular Report.
And after entering the
Most importantly, you need to create an Excel file. (The Excel file form can be downloaded from Hometax)
You have to write down each transaction in this way.
The transaction details of overseas stock transfer tax go to the HTS of each securities company (there is almost no MTS)
You can download it from the overseas stocks -> transfer tax screen. 부자되는 습관
It may be different for each securities company (I remember that Samsung Securities was printed on the website)
Usually, you can check the capital gains tax on the overseas stock menu or the online branch menu.
After the inquiry is completed in this way, you can print it out or download it to Excel.
But here you can find that Eugene Investment & Securities does not have a mother.
Yes, it is output by holding the reference point vertically in this way, but the data to be input in Hometax
The standard is set horizontally. Therefore, it is impossible to paste and you have to enter them one by one.
And why can’t the transfer date/acquisition date be printed?
All you have to do is fill in the yellow area at the top.
*In the name of the stock, the name of the stock in English or Korean,
*Enter the number 2 for domestic/foreign division
*The number of transferred shares is the number of shares traded.
*Input 61 for tax rate classification
*Enter 10 for the type of transfer item
*Enter 01 for the acquisition type (you know that these are all in the Excel form…?)
*In the transfer date, enter the date the stock was sold
It is not necessary to write the transfer price per share.
*In the transfer price, enter the stock sales amount
You can enter it all the way, and there is a part that says *International Securities Identification Number (ISIN) code.
It is good to input here. And * in the foreign asset code
In the case of the United States, enter the US, and in the case of China, enter the CN, etc.
And when uploading to Hometax after filling out the form
There are cases when it suddenly says that the upload cannot be done because the maximum number of rows and columns has been exceeded.
In this case, upload the file to Google Spreadsheet once, delete all the horizontal rows (?), and then
If you download it again, the upload will be successful.
Here’s how to fill out the form above.
Next, let’s see how to report. You must file two returns for capital gains tax and local tax.
First, go to the [Report History Inquiry] screen in Hometax,
Click on Transfer Tax Payment Form from the list above.
Then, a list of virtual accounts will appear, and you can transfer the amount to be paid to the account.
Please note that transfers cannot be made after 11pm. Those who cannot pay to the account
Click on the National Tax Service Hometax -> my Hometax -> Capital gains tax
Click to pay national tax ->
If you click [Pay] here, you can easily pay by credit card, account transfer, etc. through Internet Giro.
Next, go to pay local taxes…
Click the button to go to local income tax return in the transfer income tax return history menu.
Scroll down and press the [Immediate Payment] button.
All overseas stock capital gains tax self-report is now complete!
And if I give you a tip about the tax on overseas stocks, if you donate the stocks you are earning to your wife or children within the gift limit, there will be no transfer tax.
If you run a stock account in the name of several people, such as a family member, the basic deduction is 2.5 million won per person.
If you roll 4 people, you can get a deduction of up to 10 million won! 550,000 won is deducted every year for each stock account in the family name.
If you do it this way, it’s annoying to have to do it multiple times each time you report it, but it’s still a lot of money at 550,000 won…
So, here’s how to pay capital gains tax.
Please make sure to proceed with the application and payment within the deadline.
thank you!