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:
▪ US bank accountsheld by
Koreans accruing more than
US$10 in annual interest
▪ Other bank accountsrelated to US
▪ Financial accounts containing
over US$50,000 (Savings
worth more than US$250,000
deposited in insurance companies)
▪ US source income related
over US$250,000 (no limits for
new accounts opened after
enforcement of the agreement)
to be exchanged
▪Interests, dividends, and other
▪Interests, dividends, other
income, and account balances
▪Banks, investment banks, insurance companies, etc.
▪ Government entities, central banks, international organizations, and public
pension funds are excluded.
Method of exchange
▪ Tobedetermined between tax authorities.
When to exchange
▪ Previous year information will be exchanged by September 30
of the following year (beginning in 2015).
▪ To be identified by using information on nationality, address, place of birth,
telephone numbers, etc.
The foregoing agreement will be effective after the agreement is formally signed by both countries and ratified by the national assembly.