For those of you who are interested in stocks, the recent stock market may have given you a headache. The stock market atmosphere is not good enough to say that it is at an all-time low. If you look at my stock account right now, it’s negative, but if you made a profit from overseas stocks in 2021, there is one thing you need to do within this month.
That’s right, foreign stock capital gains tax report!
Those who are investing in overseas stocks whose capital gains amount exceeds 2.5 million won last year must file and pay capital gains tax by May 31, 2022. According to data from the National Tax Service, 33,000 foreign stock investors are targeted.
You should not expect a securities company to help you file a foreign stock transfer tax return. 해외주식 양도소득세 신고 방법 The overseas stock transfer tax agency service has already ended, and you must file a report in May with the help of a nearby tax office or self-file at the National Tax Service Hometex.
Still, it is not possible to recommend using the tax service by paying a fee to those who are burdened with paying the transfer tax on overseas stock transactions in a situation where the overseas stock market is not good.
Note that the time required to transfer overseas stocks varies depending on the number of transfers. In my case, it took about an hour to organize and report about 10 sales records. If you have a lot of stock selling history, you can use the Excel upload method, but the unfamiliar Excel upload process can lead to more time and effort.Self-report of overseas stock transfer tax 부자되는 습관
National Tax Service Hometex
Here is a ‘follow’ method of self-reporting foreign stock capital gains tax using Hometex of the National Tax Service.
The first thing you need to do is connect to the National Tax Service Hometex. Although it is possible to report transfer tax through the mobile app ‘Sontex’, it is recommended to use the PC version of Hometex. An unfamiliar tax filing task can feel more difficult and complicated when viewed on the small screen of a smartphone.
Unlike in the past, Hometex of the National Tax Service also provides a simple authentication service, and users can log in with simple authentication services such as Naver and KakaoTalk without an (old) public certificate.
May is the global income tax filing period every year, and when accessing the National Tax Service Hometex, menus related to global income tax account for most of the website. Foreign stock transfer tax is separate from the taxation tax by selecting ‘Report/Payment – Capital Gains Tax’ from the main menu of the National Tax Service Hometex.
On the capital gains tax return screen, select ‘Fixed return – Periodic return’.
Capital gains tax is a tax on the amount of income generated during the transfer of assets. Foreign stock transfer tax is just one of the capital gains tax, and there are various capital gains tax reports such as house transfer tax. Thanks to this (?), you can check the guidance on filing capital gains tax related to housing in the process of filing overseas stock transfer tax.
After reading the transfer income tax return guide, check ‘Confirmed’ and close it.
The overseas stock transfer tax reporting process is largely divided into ‘basic information’ input and ‘tax amount calculation and confirmation’. When using the National Tax Service Hometex, the first screen, ‘basic information’, can be thought of as information about the tax payer.
Select the transfer asset type ‘foreign – foreign stock’, set the transfer year to ‘2021’, and click ‘Search’. This article is based on a single report on foreign stock capital gains.
The logged-in personal information is loaded into the reporting person (transferr) section. Enter basic essential information such as phone number and e-mail information, save and click Next.
You can proceed without entering information on the transferee (the counterparty) of the overseas stock transfer tax return.
It is a painful input screen and at the same time the most important input screen, the ‘Statement of Calculation of Capital Gains such as Stocks’ screen. The amount of transfer tax is determined through the information entered on this screen and the amount of tax to be paid is generated.
The information for entering foreign stock transfer tax is as follows.
Stock name, domestic/foreign classification, international securities identification number (ISIN code), foreign asset country, type code, transfer type, acquisition type, transfer date, transfer price, acquisition date, acquisition price, necessary expenses
Among them, the part marked in red is different depending on the stock item, and the other parts are information that is repeatedly input in the same way.
If you have a lot of capital gains tax input information, you can use the Excel upload file. For the convenience of input, Excel file upload is provided. If the form is not correct during the Excel upload process, you have to repeatedly correct the error, which is not an easy task.It is recommended that you download the Hometex transfer tax-related Excel file, fill out the transaction details of the stock brokerage company in the form, and then enter them individually while watching.
If you have prepared only the input data in advance, it is sufficient to enter foreign stock trading information in 2-3 minutes per stock. If you enter only the required fields, it will be registered normally. However, since the transfer price per share is not a required input, an error occurs in calculating the transfer price, but it can be ignored.
The transfer price is determined by the number of shares transferred x transfer price per share, and it is a calculation error that occurs by inserting only the transfer price (total amount) without the transfer price per share.
Be sure to report overseas stock transfer tax on your own! please! What you need to take care of is to enter the ‘basic capital gains deduction’ of 2.5 million won at the final stage. After calculating the amount of capital gains, the final tax amount is determined.
It is unfortunate that there is no guide for entering the basic deduction amount for capital gains tax. If you do not enter the basic deduction amount when self-reporting the National Tax Service Hometax, you may make the mistake of paying a larger tax.
Foreign stock transfer tax is divided into national tax and local tax. When filling out the declaration form, the part about the national tax (20%) is confirmed, and the local tax is determined at the amount of 10% of the national tax. In other words, after filing the national tax, go to the Witex website through the ‘Local Income Tax – Reportable’ menu to check, report, and pay local tax.
When the realized profit or loss is determined through ‘selling’ in overseas stock trading, the additional income of the basic deduction of 2.5 million won per year becomes the amount subject to transfer tax. For example, if you sold your Apple stock in 2022 and the profit was 3 million won at the time of sale… 22% transfer tax (20% national tax + 2% local tax) on the profit of 500,000 won excluding the basic deduction of 2.5 million won Payment is due by May 2023.
Foreign stock transfer tax reporting service is provided by stock and securities companies at the beginning of every year, so it is recommended that those who find it difficult to self-report Hometex and apply for transfer tax reporting agency related to overseas stock transaction this year after checking the event information of securities companies between January and March 2023.