I have an overseas stock account and a virtual asset account. Under international taxation, are they subject to overseas financial account reporting?

Under the Adjustment of International Taxes Act, if you qualify as a resident and the total month-end balance of accounts opened at overseas financial companies, such as overseas securities accounts and virtual asset accounts, exceeded 500 million won on any single day during the year, the obligation to report overseas financial accounts arises.

You may submit the relevant financial account information to the head of the tax office having jurisdiction over the place of tax payment from June 1 to 30 of the following year, or report it using Hometax or Sontax (mobile).

In particular, the point to note in international taxation practice is that virtual asset accounts are also clearly subject to reporting, and even if you hold multiple accounts separately, the determination is made on an aggregate basis.

In the case of a jointly owned account, in principle all joint owners are persons obligated to report, and in the case of a borrowed-name account, both the actual owner and the nominal holder may bear the reporting obligation.

If you omit a report or under-report, an administrative fine equivalent to 10% of the unreported amount may be imposed, and if the amount is large, it may even lead to public disclosure of the list of offenders or criminal punishment, so the international taxation risk is considerable.

Therefore, it is necessary to accurately review the structure of the accounts held and the actual ownership relationships, and then determine whether a lawful overseas financial account report is required.

We recommend that you prevent unnecessary tax and criminal risks through a prior review with an attorney specializing in taxation.