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If you earned more than 1 million won by investing directly in overseas stocks such as Tesla through the’Seohak Ant Movement’ last year, you cannot receive personal deduction for dependents (basic deduction). If you apply for the basic deduction incorrectly, you may be charged an underreporting penalty (10%) in addition to the tax, so caution is required.
According to the National Tax Service on the 17th, in order for the dependents of workers to receive the basic deduction, the total annual’income amount’ must be less than 1 million won. The amount of income is the remaining value from the total amount of income, excluding necessary expenses, etc., and money earned from stock trading is also included in the amount of capital gains. Accordingly, if the money earned on overseas stocks such as Tesla or Apple, minus fees and transaction tax, exceeds KRW 1 million, you cannot receive basic deductions.
However, even if you earn a large amount with domestic stocks, you can still receive basic deductions. This is because, unlike overseas stocks, which are included in unlisted stocks under the tax law, domestic listed stocks are not subject to capital gains tax. An official from the National Tax Service explained, “If it is revealed that you have received personal deductions as dependents even though you have a foreign stock transfer income of more than 1 million won through a year-end settlement computer inspection, you must pay additional tax along with the untaxed amount.”
If you made money from overseas stocks, you must report and pay the stock transfer income tax in May. At the end of April every year, the National Tax Service receives transaction data from securities companies and informs them of the report to those subject to capital gains tax, such as foreign stock investors.
Kim Il-hwan, a tax expert at NH Nonghyup Bank, said, “If a full-time housewife or student who received basic deductions invested in overseas stocks last year and earned more than 1 million won in 2020, be sure to inform the family at the end of this year and exclude them from the basic deductions. “You have to report it,” he advised. “If you put it in the basic deduction target and report it as it is, the underreporting penalty (10%) will be added and tax will be added.”
Reporter Seong Soo-young [email protected]
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