Strengthened reporting requirement for overseas real estate and overseas direct investment
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Current |
Proposed Changes |
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n Domestic companies or individuals who acquired foreign real properties or have rental(lease) income are subject to reporting requirement: |
n Strengthened reporting requirements and penalty assessment standards. · Disposal of overseas real properties are newly added and the base amount threshold by transaction is newly introduced. |
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Reporting required |
Base amount threshold |
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Reporting required |
Base amount threshold |
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Acquisition |
Acquisition details |
N/A |
Acquisition |
Acquisition details |
Acquisition value of over KRW 200 million |
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Rental(lease) income |
Rental (lease) income detail |
N/A |
Rental(lease) income |
Rental (lease) income detail |
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Disposal |
Disposal details |
Disposal value of over KRW 200 million |
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n Penalties for delinquent reporting and false reporting |
n Increased penalties |
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Penalties |
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Penalties |
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For acquisition |
1% of acquisition value |
For acquisition |
10% of acquisition value |
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For rental(lease) income |
1% of acquisition value |
For rental(lease) income |
10% of rental(lease) income |
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For disposal |
10% of disposal value |
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※ Max penalty limit: KRW 50 million |
※ Max penalty limit: KRW 100 million |
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In an effort to strengthen management of offshore tax bases by the Korean tax authorities, the proposals expand the reporting requirement to include details on disposal of overseas real estate by domestic companies or individuals in the annual income tax returns. This revision will be effective from the filings for the overseas real estate for the tax year beginning on or after January 1, 2019. For the increased penalties, the revisions will be effective from the tax years beginning on or after January 1, 2020.