I have an overseas stock account and a virtual asset account, do they fall under the overseas financial account reporting target under international taxation?

Under the Adjustment of International Taxes Act, if you are a resident and the monthly balance total of accounts opened at overseas financial institutions, including overseas securities accounts and virtual asset accounts, exceeded 500 million won on any day during the year, an obligation to report overseas financial accounts arises.

The relevant financial account information can be submitted to the head of the tax office in your tax jurisdiction from June 1 to 30 of the following year, or reported using Hometax or Sontax (mobile).

In particular, what to note in international taxation practice is that virtual asset accounts are also clearly subject to reporting, and even if multiple accounts are held in dispersion, judgment is made on a combined basis.

In the case of joint-name accounts, in principle, all joint name holders are subject to reporting obligations, and in the case of nominee accounts, both the actual owner and the nominee may bear reporting obligations.

If you fail to report or under-report, a fine of 10% of the unreported amount may be imposed, and if the amount is large, it can lead to disclosure of the list or even criminal punishment, so the international taxation risks are considerable.

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

We recommend preventing unnecessary tax and criminal risks through prior review with a tax specialist attorney.