Important Notice for taxpayers from National Tax Service, South Korea
Recently, the National Tax Service in South Korea released an important notice via Naver Blog informing taxpayers to declare the tax for income obtained through the sale of properties. The date of the declaration is crucial and taxpayers must ensure it’s done by the 2nd of June, 2025.
The increased personal overseas stock transactions have significantly increased the number of people notified for final tax returns on foreign stocks each year.
Final Tax Returns
The National Tax Service started mobile delivery of the instructions among the 140k eligible taxpayers for the final tax returns of income tax in 2024. To make the process easier for all taxpayers above 60 years of age who had transferred real estate, the service has also dispatched postal notifications.
Digitized Support System
To enhance taxpayers’ convenience, the National Tax Service provides a digitized support service to declare capital gains tax through various final tax return services accessible through HomeTax and SonTax.
Taxpayers can access multiple help resources, such as case studies on final tax return forms, and examples of error cases on HomeTax. Further, taxpayers can verify their provisional return information and update their final returns without missing any crucial information via the ‘pre-filled provisional return information’ service.
The service has also simplified the evidence submission process by enabling taxpayers to capture images of their documents using a mobile camera and submitting it through SonTax. Alternatively, they can fax the documents using a virtual fax number from HomeTax.
Final Tax Returns – Scope and Deadline
The taxpayers eligible for final tax returns are those who have transferred assets such as real estate or stocks in 2024 without prior declaration of their taxes. This includes taxpayers who’ve had more than two transfers and have not reported their income, and those who’ve dealt with foreign stocks or derivative products and have made income in 2024. The final tax declaration must be filed before June 2, 2025.
Taxpayers can submit their final tax returns either electronically using HomeTax (PC) or SonTax (Mobile), or they can manually fill up the tax return form and submit to the tax office in their local jurisdiction.
The tax can be paid electronically via HomeTax, mobile, or by using a credit card. For amounts exceeding KRW 10 million, taxpayers can split their payments into two parts, to be paid by June 2 and August 4.
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Even if taxpayers have not received instructions for final tax returns, those who have dealt with foreign stocks and have income applicable for reporting, must make the declaration. Violators will be dealt with severely, with a 20% non-declaration additional tax levied on their unpaid tax amount and late payment of non-declaration tax levied at 0.022% per day.
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Disclaimer : This content is a translation of material originally published in Korean by the National Tax Service of the Republic of Korea. While efforts have been made to ensure accuracy, this translation is provided for informational purposes only and does not carry legal weight. In the event of any discrepancy, the original Korean version shall prevail. Users should consult the official Korean documents for precise interpretation. This translation does not constitute legal advice. The translators and publishers shall not be held liable for any loss arising from reliance on this translation.