▲ National Tax Service
Driven by an increase in overseas stocks, reported overseas financial accounts exceeding 500 million won have surpassed 100 trillion won once again.
Including overseas trust reports, total overseas assets reached 111 trillion won.
According to the National Tax Service today (Sept. 2), this year's reported overseas financial accounts stood at 107.1 trillion won, up 13.3% from last year.
The number of reporters increased by 9.1% to 7,484.
In terms of reported amounts, it is the first time in three years that the figure has exceeded 100 trillion won, following 186.4 trillion won in 2023, 64.9 trillion won in 2024, and 94.5 trillion won last year.
Stocks accounted for 57.2% of the total at 61.3 trillion won (held by 2,434 people), surging 13.2 trillion won from the previous year.
The National Tax Service analyzed that this was mainly due to the increase in stock listings and evaluation values stemming from the expansion of domestic companies into overseas markets, with the overseas stock amount reaching an all-time high.
Looking at the holdings of individual reporters by age group, the proportion of reporters was highest among those in their 50s (29.8%), followed by those in their 40s (26.7%) and those aged 60 and older (24.4%).
In terms of value, those aged 60 and older ranked first at 32.6%, followed by those in their 50s (23.3%) and 40s (22.0%).
The average reported amount per person was led by those aged 60 and older (5.48 billion won), followed by those in their 30s (4.89 billion won), and those aged 20 and under (3.83 billion won).
By country (excluding virtual asset accounts), the United States had the highest number of people and amount at 29.7 trillion won (3,372 people).
India emerged as the runner-up in terms of reported value.
Although account holders accounted for just 1.5% of the total at 113 people, the reported amount surged 7.2 trillion won from the previous year to 28.9 trillion won (27% of the total).
For virtual assets, reported values dropped by 600 billion won to 10.5 trillion won due to price declines.
The number of virtual asset reporters rose by 42 to 2,362.
A total of 2,380 individuals with no prior reporting history (31.8% of the total) newly reported 6.4 trillion won.
By asset type, stocks were the highest at 2.8 trillion won, while by country, the U.S. accounted for the largest share at 2.3 trillion won.
Residents or domestic corporations must report if the total balance of their overseas financial accounts exceeds 500 million won on any single day at the end of each month during the previous year.
For overseas trusts, 1,286 people reported 3.8 trillion won.
This year marks the first time overseas trusts have been subject to reporting.
While 97.6% of the reporters were individuals, corporations accounted for 81% of the reported amount.
This is attributed to corporations, such as asset management and shipping companies, holding large-scale funds like bonds and funds in the form of trusts.
For individuals, insurance policies accounted for 75.3% of all reported cases.
The average holding period for overseas trusts was about 5 years.
The proportion of assets held for 5 years or longer stood at 42.2%.
Among the 1,591 cases of overseas trusts, those located in Hong Kong were the most common at 758 cases (48%).
In terms of value, the U.S. took up the largest share at 80% (3 trillion won) of the total reported amount.
The National Tax Service evaluated that despite it being the first reporting year, the success was driven by briefing sessions and preliminary notices, enabling the formalization of trust assets that previously evaded the tax net.
The National Tax Service plans to thoroughly verify individuals suspected of failing to report or under-reporting by utilizing inter-governmental information exchanges, impose fines equal to 10% of the problematic amounts, and collect related taxes.
However, even if the statutory reporting deadline has passed, taxpayers can receive up to a 90% reduction in penalties if they faithfully submit amended reports.
From 2011 to the end of last year, the National Tax Service caught 969 people who failed to report overseas financial accounts and imposed 287.8 billion won in penalties.
Last year alone, the figures stood at 148 people and 24.5 billion won.
Starting next year, the National Tax Service plans to implement the Automatic Exchange of Information on Crypto-Asset Transactions between Countries to utilize virtual asset transaction data received from other nations for verification.
An official from the National Tax Service urged, "As this year's tax law revision proposal includes raising penalties for failing to report overseas trusts from 100 million won to 1 billion won and establishing a reward system for reporting them, those who have omitted overseas assets should report them as soon as possible."
(Photo provided by National Tax Service, Yonhap News)
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