Last Year's Overseas Stock Income Must Be Reported for Capital Gains Tax Final Filing by the End of This Month

National Tax Service Provides Final Tax Return Guidance to 95,000 People

If you sold real estate or stocks last year and did not file a preliminary report, or if you incurred capital gains from overseas stock and derivative transactions, you must file and pay the capital gains tax final return by the end of this month.

The National Tax Service announced on the 4th that it plans to notify 95,000 people via mobile about the final return. The deadline for filing and paying the 2022 capital gains tax final return is May 31.

If you sold real estate, stocks, or other assets in 2022 and did not file a preliminary report, or if you transferred real estate, rights related to real estate, other assets, listed stocks (limited to major shareholder transfers), or unlisted stocks two or more times and did not report the combined income amount, you must file a final return. Additionally, taxpayers who incurred capital gains from overseas stock and derivative transactions, which are not subject to preliminary reporting obligations, must also report and pay capital gains tax. Losses incurred from overseas stock transfers can be deducted from gains on domestic stock transfers when filing.

The number of people subject to final return notifications this year is a total of 95,000, including 10,000 for real estate, 3,000 for domestic stocks, 72,000 for overseas stocks, and 10,000 for derivatives.

The final return notification will be sent as a mobile notice, and for taxpayers who cannot receive mobile notifications, individual postal notices will be sent. Those subject to final returns can file electronically via Hometax or Sontax, or submit a paper report to the tax office with jurisdiction over their address.

When using electronic filing, the system pre-fills the reporting items to easily verify preliminary report details, and for derivatives, a full-fill service is provided from transfer amount to tax payable. Taxes to be voluntarily paid can be paid electronically through Hometax or mobile, using credit cards or simple payment methods.

Taxpayers who have difficulty filing or paying by the deadline due to damages from recent wildfires or other illnesses may apply for an extension. The extension period is up to 3 months, but if the reason persists, an additional extension of up to 9 months (including the previously extended period) is possible.

If the final return is not filed by the deadline (May 31), a 20% non-filing penalty will be imposed, and if the report is fraudulent, a 40% penalty will be applied. Late payments will incur additional late payment penalties.