Tax Office Expands Scope of Financial Account Reporting

Accounts at foreign cryptocurrency exchanges will be subject to overseas financial account reporting from Jan. 1, 2022.

The National Tax Service announced on June 3 that accounts at foreign cryptocurrency exchanges would become subject to overseas financial account reporting on Jan. 1, 2022.

The mandatory reporting is applied to residents and corporate bodies in South Korea. If the total overseas account balance exceeds 500 million won on the last day of any month, the fact must be reported in June of the following year. At present, the mandatory reporting covers every financial product ranging from deposits, savings, stocks and bonds to funds, derivatives and insurance. Cryptocurrencies will be included in the scope next year.

The deadline of this year’s reporting is June 30. A violation is subject to a fine equivalent to 10 percent to 20 percent of the unreported or underreported amount. A violation exceeding five billion won is subject to criminal punishment.

The number of uncovered violations is on the increase based on financial data exchange with multiple governments. Last year, 47.4 billion won was imposed on 68 violators. A total of 2,685 reports with a total value of 59.9 trillion won were made last year.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution