I have US stocks, but the sum of the losses and gains is negative… It’s sad.
Next month, May, is the month to file the global income tax return. If your interest income is more than 20 million won, you must file a global income tax return.
There are many people who are working and investing.
Even if you sell domestic stocks and make a profit, you do not have to declare it because there is no separate tax.
Foreign stocks are subject to income tax reporting on the profits obtained from the sale. From 2023, domestic stocks will also be subject to capital gains tax.
Are you worried about how to file capital gains tax?
You can easily file a report because the brokerage company that trades stocks makes the report for you.
How to file a foreign stock transfer income tax return
Capital gains tax calculation formula 해외주식 양도소득세 신고 방법
Capital gains tax base = Capital gains amount (transfer profit) – Basic deduction on capital gains
Calculation of capital gains tax = capital gains tax base x 20% (10% of local income tax and transfer tax excluded)
In principle, you can deduct 2.5 million won per year for foreign stock capital gains tax.
If the total amount of loss + profit during the year is less than KRW 2.5 million, it is subject to capital gains tax exemption.
If the amount exceeds the basic deduction amount of KRW 2.5 million, a tax of 22% (tax base on capital gains + 10% of local income tax transfer tax excluded) is accrued on the excess.
“Period for filing capital gains tax”
For sales made between January 1 and December 31 of each year, capital gains tax must be reported and paid within the reporting period of the following year (May 1 to 31).
If you do not report/pay within the reporting period, penalty tax will be charged.
Penalty tax: Penalty tax for negligence in reporting (10% for under-reporting, 20% for non-reporting), penalty for negligence in payment (10.95% per year)
Final returns are made once a year, and you must voluntarily report and pay during the month of May, in which the transfer date belongs. If you do not report within the deadline, you will be charged a penalty of 20% for non-reporting and a penalty of 0.025% per day for negligence in payment. It is best to report on time
”Three tax-saving tips on overseas stock taxes”
1) Sell lossy stocks in the same year as winning stocks!
The transfer tax is calculated by adding up the gains and losses of overseas stocks in one year. (However, profits and losses between foreign stocks and domestic stocks are not added up.)
2) Reduce capital gains tax by selling in installments using the basic deduction amount!
Capital gains tax can be reduced by dividing and transferring the stocks that have accrued profit within the annual capital gains of 2.5 million won and receiving the basic capital deduction.
Don’t worry too much because the brokerage company handles foreign stock capital gains tax returns.
I would like to explain based on the ‘Samsung Securities’ I am using. (Of course, I have nothing to report because I am negative.)
”Samsung Securities Overseas Stock Transfer Tax Reporting Service”
You can use the Samsung Securities app or visit the Samsung Securities website on your PC.
PC Samsung Securities homepage is basic. 부자되는 습관
For detailed information on applying for overseas stock transfer tax return, please visit Trading > Overseas Stocks > Overseas Stock Tax Information > Transfer Tax Inquiry.
In principle, if you are subject to the previous year’s report, you should voluntarily report and pay by the end of May of this year.
When applying for this service, report to the National Tax Service for overseas stock transfer tax through an affiliated tax corporation with Samsung Securities.
Trading > Overseas Stocks > Application for Tax Transfer of Overseas Stocks
01. Confirmation of reportability and transfer gains and losses
If the tax base for capital gains from the previous year exceeds KRW 2.5 million, it is subject to voluntary reporting and payment.
02. Consent to provide personal information and financial transaction information
I agree to provide essential personal information and financial transaction information to tax firms, etc. for reporting purposes.
03. Enter customer information and tax payment receipt method
Enter the tax jurisdiction (certified copy) address and contact information, and select the method of receiving the tax notice.
04. Confirmation of receipt and application
When the transfer tax return application is completed, we will inform you of the expected future schedule.
After confirming the transfer profit or loss, go to the next step, check the input fields and information, and then move on to the next step ^^
Because I am not applicable…. I want to pay some tax next year haha
The reporting agency schedule for Samsung Securities is until April 22.
If you make a profit after selling overseas stocks, you must report/pay capital gains tax in May of the following year.
Gains and losses on foreign stock transfers in the same year can be combined (however, gains/losses on domestic stock transfers cannot be combined).
You can apply the basic capital deduction of 250,000 won. The capital gains tax rate is 20% (10% of local income tax and transfer tax excluded).
If you prepare the expected capital gains tax (approximately 22% of the profit) at the end of the year when the capital gains are confirmed, you can pay the tax return/payment in May of the following year with plenty of time.
Foreign stock dividend income is taxed just like domestic dividend income!
As with domestic dividends, dividend income from overseas stocks is subject to withholding tax.