▷ Where the nominal account holder does not match the actual account owner, both
are obligated to file a report.
In the case of jointly-held accounts, each of the
respective joint owners of the account should file a report.
▷ Where a domestic company owns 100 percent of the shares of a foreign company,
the domestic company shall
be considered
the actual owner of the accounts held
by the foreign
company (not applicable to foreign
companies located in a country in
which a tax
treaty is in force.)
◈ Minimum balance of accounts to be reported
☞Foreign Financial Accounts with total balance exceeding KRW 1 billion on any last day of each month of the year
subject to reporting
(2016) should be reported.
◈ Accounts and assets subject to reporting
☞Foreign Financial Accounts subject to reporting
Changes
|
Matters to be reported |
| Accounts to be reported |
Any of the following accounts opened at
a foreign financial company:
① An account opened for banking services such as a savings account
② An account opened for trading securities (including overseas securities)
③ An account opened for trading derivatives (including foreign derivatives)
④ Other accounts opened for financial transactions |
| Assets to be reported |
All assets including cash, securities
(including depository receipts), bonds,
collective investment securities, insurance policies, etc. held in Foreign Financial
Accounts subject to reporting |
◈ When and how to file a report
☞Taxpayers subject to reporting should ought to file the "Report of Foreign Financal
Accounts" to the competent tax
office
or use
"e-filing" service by visiting Hometax
(http://www.hometax.go.kr). The period for submitting a report
is from June 1 through 30.
Note : Other documentary evidence such as certificate of bank balance does not need to be attached.
◈ Penalties for unreporting or under-reporting
☞ (Fine) A fine of up to 20 percent of the unreported (or underreported) amount shall
be imposed.
"e-filing" service
by visiting Hometax
(http://www.hometax.go.kr). The period for submitting a report is from June 1 through 30.
(Disclosure of personal information) Where the unreported (or underreported) amount
exceeds KRW 5 billion,
the account
owner’s
personal information can be disclosed.
(Criminal penalties) Where the unreported (or under-reported) amount exceeds KRW 5
billion, the account
owner may face
imprisonment of not more than two years and/
or a fine of up to 20 percent of the
unreported (or under-reported) amount.
◈ Return after due date and revised return
☞ In case of non-reporting or under-reporting of Foreign Financial Accounts, taxpayers must file a return after due
date or a revised
return immediately. 10 percent to 70
percent of penalties can be reduced according to the time
of filing.
◈ Reward for report
☞A reward of up to KRW 2 billion won is paid to a person who provided important iformation (e.g., account
number, account balance)
that helped uncover an unreported (or under-reported) overseas
financial account.
* The reward is paid even if the recipient is also eligible for a reward for reporting tax evasion or tax
defaulters‘
hidden assets.
