Hello, In this post, I will tell you how to report and pay overseas stock transfer income tax on your behalf.
May of 2021, when you have to pay income (transfer) tax on the sale of overseas stocks, is fast approaching.
Securities companies such as Mirae Asset Securities, Korea Investment & Securities, Shinhan Financial Group, and Kiwoom Securities provide foreign stock transfer tax reporting on behalf of the company.
Since I am currently trading overseas stocks with Mirae Asset Securities, I will explain it as a proxy for filing foreign stock transfer income tax at Mirae Asset Securities. I know that other brokerages are not much different.
Before May, when you have to pay overseas stock transfer income tax, the brokerage company will send you a text message to inform you of the reporting agency.
Mirae Asset Securities Overseas Stock Transfer Income Tax Agency Reporting Guide
Mirae Asset Securities Overseas Stock Transfer Income Tax Agency Reporting Guide
Before discussing the filing agency procedure, let me tell you how to calculate the capital gains tax on foreign stocks.
index
1. What is foreign stock transfer income tax and how to calculate it
2. Mirae Asset Securities foreign stock transfer income tax return process
3. Mirae Asset Securities overseas stock transfer tax payment method
1. What is foreign stock transfer income tax and how to calculate it
Overseas stock capital gains tax is a tax applied at a rate of 22% (including 2% local income tax) after deducting a basic deduction of KRW 2.5 million, including fees, from transfer gains (revenues) from overseas stock trading for one year.
In 2022, when the profit and loss (sum of profit and loss) is calculated from January 1, 2021 to December 31, 2021, if the basic deduction amount exceeds 2.5 million won, it is a tax that must be paid.
However, if it is a profit, but the foreign stock is not sold, the foreign stock capital gains tax is not paid because the profit is not confirmed.
Please refer to the example below for easy understanding.
Example of how to calculate foreign stock capital gains tax
An example of how to calculate capital gains tax on foreign stocks
The important thing is that capital gains tax is calculated by adding up the gains and losses for one year last year, and is not subject to tax payment unless the gains/losses are realized through actual sales.
Foreign stock capital gains tax must be reported in May when the global income tax is filed.
Global income tax payment period: May 01 – May 31
2. Mirae Asset Securities foreign stock transfer income tax return process
Although the payment period for global income tax is in May, if you do not directly pay capital gains tax and want to make a request to the securities company you are using, you must apply for a return in April.
Although other securities companies do not know the exact application deadline date, Mirae Asset Securities and Kiwoom Securities must apply for reporting by the following date.
Mirae Asset Securities reporting agency request date: by April 08
Kiwoom Securities: Until April 13
Although the application period has already expired on the date of publication of this article, if you entrust the reporting agency, please apply in April next year. There is no need to bring it with you, as it explains in detail the relevant content in real text.
Since the securities company I am using is Mirae Asset Securities, I will explain based on the securities company standards, but I think the overall procedure for other securities companies will be similar. 해외주식 양도소득세 신고 방법
2.1 Select ‘Overseas Stock’ and ‘Transfer Tax’.
Mirae Asset Securities’ overseas stock transfer income tax return process – 'overseas stocks' and ' Capital gains tax'
Mirae Asset Securities Overseas Stock Transfer Income Tax Reporting Agent Procedure – Select ‘Overseas Stocks’ and ‘Transfer Income Tax’
In the case of Mirae Asset Securities, of course, you must apply by accessing the m.global app where you can trade overseas stocks.
2.2 Enter the ‘Transfer Tax Agency Application’ application and personal information.
Mirae Asset Securities’ overseas stock transfer income tax return procedure – 'Transfer tax proxy application' Enter application and personal information
Mirae Asset Securities’ overseas stock transfer income tax return process – Apply for ‘Transfer tax proxy application’ and enter personal information
Choose your own overseas stock account
Report year: Select 2022
Address: Enter your residence address
E-mail to receive report and payment form: Check if the e-mail previously stored in Mirae Asset Securities is correct, and if it is different, you can edit it. You must enter these fields correctly as you will need to receive your actual tax payment slip.
2.3 Confirm and agree to the application for foreign stock transfer income tax return service. 부자되는 습관
Mirae Asset Securities Overseas Stock Transfer Income Tax Reporting Agent Procedure – Confirmation and consent of the overseas stock transfer tax return service application
Mirae Asset Securities Overseas Stock Transfer Income Tax Reporting Agent Procedure – Confirmation and consent of the overseas stock transfer tax return service application
An application for reporting agency service will appear, and if you simply click OK and Agree, it will be the same as signing the application.
2.4 Sending PDF of third-party transaction aggregate report request and answer to other broker’s account transaction
Mirae Asset Securities Overseas Stock Transfer Income Tax Reporting Agent Procedure – Reporting other companies’ transactions and answering the application questions and sending PDF of account transactions with other securities
Mirae Asset Securities Overseas Stock Transfer Income Tax Reporting Agent Procedure – Reporting other companies’ transactions and answering the application questions and sending PDF of account transactions with other securities
When you apply for an agent, a screen asking if you want to report it by adding it to the account transactions of other brokerages appears.
If there is profit from overseas stock trading at another securities company, you must apply for an aggregate report and send the relevant transaction details.
If you have followed the application procedure mentioned so far, Mirae Asset Securities will send a message of completion of the proxy application to KakaoTalk as shown below.
Mirae Asset Securities Overseas Stock Transfer Income Tax Reporting Agency – Application Completed
Mirae Asset Securities Overseas Stock Transfer Income Tax Reporting Agency – Application Completed
Some of you may think that everything is over if you apply for an overseas stock transfer income tax return, but it is not yet complete.
The application so far has only applied to the reporting agency, and you have to pay the actual capital gains tax.
When I first applied for a report at Mirae Asset Securities, I thought that it would be complete by just applying, but you must actually pay income tax yourself.
It is not difficult to pay income tax, and you can send income tax to the account number written on the income tax payment slip sent to you.
3. Mirae Asset Securities overseas stock transfer tax payment method
If Mirae Asset Securities completed the application for foreign stock capital gains tax return in April, the tax return agency will send you a text message and email related to income tax payment in May.
Information on the payment of capital gains tax on overseas stocks (tax firm)
Information on the payment of capital gains tax on overseas stocks (tax firm)
There are a total of 3 PDF files in the actual mail.
Capital Gains Tax Payment
Local income tax payment form
Capital gains tax return
In addition, the content of the e-mail contains the basis for calculating the capital gains tax and local income tax that the person must pay.
In the beginning, I explained the contents of the stock transfer tax, but I think it would be good if you check it and understand it.
Mirae Asset Securities Capital Gains Tax and Local Tax Calculation Results
Mirae Asset Securities Capital Gains Tax and Local Tax Calculation Results
Although the deadlines for payment of capital gains tax and local income tax are different, it is better to pay them all at once before forgetting them.
Actual capital gains tax and local income tax When you open the PDF file, the amount to be paid and the transfer bank are displayed as shown below.
Contents of transfer tax payment form
Contents of transfer tax payment form
The account number may be suspicious, but when you actually transfer money, the name of the account is written as the national treasury (transfer income tax) and Seoul district (local tax) as shown below, so you can send and pay with confidence.
Remittance history of overseas stock capital gains tax and local income tax
Remittance history of overseas stock capital gains tax and local income tax
So far, I have explained how to report and pay overseas stock transfer income tax on behalf of an agency.
If you do not pay the tax due to overseas stock trading, data is left with the brokerage company, so if you do not pay it during the reporting period, you will have to pay additional tax as a penalty, so please pay it within the specified period.