South Korea's National Tax Service: Starting next year, overseas financial accounts with a balance of more than 500 million won, including virtual assets, must be reported

According to the National Tax Service of South Korea on the 16th, in order to prevent foreign virtual assets from becoming a means of tax evasion, holders will have reporting obligations starting next year.

Therefore, starting next year, domestic residents or domestic companies whose total balance of overseas financial accounts (including virtual assets in overseas exchanges) exceeds 500 million won on the last day of each year must report to the competent tax authorities in June of the following year. Violations of the obligation to report overseas financial accounts will be subject to a fine of up to 20% of the unreported amount. If the unreported amount exceeds 5 billion won, it will be subject to criminal prosecution and list disclosure review. It is reported that South Korea will tax income from virtual assets from next year, but some people are worried that overseas exchanges will become a blind spot for taxation.