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The Definition of the Overseas Financial Account Balance
(Korea)
1. Report of Overseas Financial Accounts
The Overseas Financial Account information is required to be reported to National Tax Service in Korea for Residents or Domestic Corporations holding an overseas financial account opened at an overseas financial company if the aggregate balance exceeds KRW One Billion for any last day of a month of the relevant year. Taxpayers subject to reporting should file the “Report of Foreign Financial Accounts” to the competent tax office during the period June 1 ~ June 30 of the following year.
2. Determination of Balance; exceeding KRW One Billion
The remaining balance of the account as of the last day of each month is to be computed by summing the amounts calculated as to the assets of each overseas financial account (including all accounts held during the entire period of the relevant year, including those with no transaction history or those closed during the relevant year) held by the person liable to report after converting them respectively at the exchange rates (referring to a daily basic or arbitrated exchange rate under the Foreign Currency Exchange Transactions Act) of the relevant nominal currencies:
3. Report Value and Basic Date
When a sum of balances of the owned account converted into KRW as of the last day of each month reached the highest value during the relevant year, the reporting should be filed based on this date (fill the column ⑦, ‘as of date' in the Report Form with this date). This means that the date with highest value in aggregated amount of balances should be considered as a basic date for reporting, not the each date with highest value for each accounts. Also the official exchange rate at the end of the attributable date should be used to convert to KRW, not the annual average exchange rate.
4. Conclusion
The balance of the account should be reported in the aggregated amount of the value of the assets on the last day of each relevant month (fill the column ⑧, ‘the highest value (KRW)' in the Report Form with this value)
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