Korea - US Agreement on Automatic Exchange of Tax Information
The Ministry of Strategy and Finance announced that Korea has signed a treaty agreeing to exchange tax related information with the US Department of Commerce starting in 2015. Key elements of the agreement are as follows:
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UStoKorea |
KoreatoUS |
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Accounts information of individuals |
▪ US bank accountsheld by Koreans accruing more than US$10 in annual interest ▪ Other bank accountsrelated to US sourceincome |
▪ Financial accounts containing over US$50,000 (Savings worth more than US$250,000 deposited in insurance companies) |
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Accounts information ofcorporations |
▪ US source income related financial accounts |
▪ Financial accounts containing over US$250,000 (no limits for new accounts opened after enforcement of the agreement) |
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Other information to be exchanged |
▪Interests, dividends, and other income |
▪Interests, dividends, other income, and account balances |
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Financial institutions to participate |
▪Banks, investment banks, insurance companies, etc. ▪ Government entities, central banks, international organizations, and public pension funds are excluded.
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Method of exchange |
▪ Tobedetermined between tax authorities. |
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When to exchange |
▪ Previous year information will be exchanged by September 30 of the following year (beginning in 2015). |
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Identification of account holder |
▪ To be identified by using information on nationality, address, place of birth, telephone numbers, etc. |
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The foregoing agreement will be effective after the agreement is formally signed by both countries and ratified by the national assembly.