When you have HongKong passport but work in Korea, where do you pay tax on capital gains you have made last year from selling US stocks?
When it comes to tax, the term of ‘resident’ or ‘non-resident’ is often used rather than nationality or passport country. If you have an address in Korea and have been in Korea for a while, it is much likely that you are a resident of Korea for tax reporting.
The taxable income is computed after deducting respective service fees and transaction fees. Basic deduction of KRW 2,500,000 is applied to your taxable income. Therefore, if you have made less than KRW 2,500,000 on overseas stocks last year, then there is no tax. The taxable income is sum of gains and losses on multiple stocks from January 1, 2020 to December 31, 2020.
There are few important things to remember.
Proper tax filing and making tax payment in time is the easiest way of saving tax.