If you’ve lived in Korea for over a year, prepare to report your overseas bank accounts to the Ministry of Finance from next year:
Foreigners staying in Korea for over one year will have to report any bank accounts they hold outside Korea to local authorities beginning next year, according to the Ministry of Strategy and Finance yesterday.
Businesses based overseas that operate in Korea may be required to do the same, the ministry said.
In its 2010 policy guide submitted to President Lee Myung-bak, the ministry said overseas bank accounts would have to be reported for every resident in Korea. The local tax law defines a resident as anyone who lives in Korea for more than one year, regardless of nationality.
The ministry regards the measure as a means to prevent high-income earners from evading taxes by using overseas bank accounts.
(HT to reader)
{ 40 comments… read them below or add one }
Ha ha. And how exactly are they going to enforce this?
“Do you have a bank account overseas?”
“No.”
“Prove it!”
“Okay, here’s the empty space in my wallet where my bank card isn’t.”
The IRS is currently enforcing it pretty well in regard to the analogous U.S. law.
I’m sure this law is aimed at gyopos who live and do business here. I can’t see them caring about E-visa holders.
Wonder if that will affect SOFA holders. I’m not sure if the agreement mentions privacy in regards to financial records since SOFA personnel aren’t normally responsible for any Korean taxes. Might end up being a required formality without any further effect? Thoughts?
I think it will be fairly easy for them to enforce – that is if you’ve ever sent money home. If all you’ve ever done is exchange it for cash and carry it with you when you leave the country then they’ll have a hard time. But all the banks that send money for you keep detailed records.
What’s next? Are they going to tell me I have too many foreign bank accounts (5 at last count), because I am a foreigner, much like I can have an ATM card issued from a Korean bank that says ‘International’ on it but can’t actually use it overseas for the sole reason that I am a foreigner?
Steviebee,
That was pretty damn funny.
My guess is that they don’t care how many you have but how much you have in them all together, which is what the IRS does, right?
Also, does anyone know why foreigners are getting dragged into something presented as “part of enhanced monitoring of taxation of Korean citizens’ overseas income”?
tmc1233-
Go to Woori Bank. You can get an international debit card that you can use to withdraw money anywhere. If you let them know before your travel to a foreign country, they’ll set it up so you can use it with vendors during your period there too.
The FM will have great difficulties making this work. It is not very plausible or desirable for me, as a non-Korean and I don’t see any reason to comply.
‘The FM will have great difficulties making this work. It is not very plausible or desirable for me, as a non-Korean and I don’t see any reason to comply.’
above the law, huh? think because you’re canadian, you can do what you want, huh? it’s their country. you live there. you follow their laws.
seems easy to understand.
Koreans don’t follow the laws. Why should anyone else?
Besides, I’m guessing this new law is designed to 1) catch Koreans hiding money from thier own government and 2) hassle foreign CEOs in the event they manage to make any money here. Everyone else is just collateral damage. So, why would anyone want to comply?
‘Koreans don’t follow the laws.’
yes, they do. that’s why the place works. your argument is racist. you will comply. just like hiv test.
You’ve really never been to Korea, have ya?
look, don’t give me your bullshit about traffic laws. korea ain’t no lawless society and none of this really matters, does it? you’re law-abidding westerners. we shouldn’t even be talking about which laws you’re gonna follow.
the expat and his arrogance are simply astounding.
I think you can all thank Uncle Sam for this new tax law.
Earlier this year, the IRS decided to enforce FBAR (Reporting of Foreign Bank and Financial Account). Records of Americans with accounts in UBS were seized by the Feds to show that they meant Serious Business. Why? Because the US government is going broke.
I wouldn’t be surprised if this new requirement might have something to do with FBAR, either directly or indirectly.
@13
No, they don’t. And I don’t think Korea works all that well. People have little regard for the law, and that results in a lot of quality of life issues. Is it better than some places? Sure. But that doesn’t mean much, does it?
When was the last time you were here?
Just before I drive my motorcycle down the sidewalk to the brothel behind the police station, you know the one beside that building that fell over, let me ask you a question: Do you win most of your arguements because the other person gives up?
yes, they do. that’s why the place works. your argument is racist. you will comply. just like hiv test.
No, they don’t. No, it doesn’t. No, it isn’t. No, I won’t. Never did it.
‘No, they don’t. And I don’t think Korea works all that well.’
yeah, they do. and korea works just fine. you’re a known korea-basher along with seouldout. get past your hate, ok?
in any event, YOU will be following the law, won’t you, western guy?
see what happens when you don’t hate?
‘(These are just off the top of my head without any deep though so I may get some flack… It won’t hurt my feelings if you make a good case that I am mistaken.)
An efficient airport staffed with friendly and helpful workers with excellent public transportation to and from all population centers across the nation.
A society where all members, regardless of class or regional affiliation, hope for the success of their country and are willing to make personal sacrifices if necessary.
An easy and efficient recycling program that is supported by the vast majority of the population.
A government that encourages national unity rather than one which demonizes patriotism, discourages unifying nationalism and attempts to divide the population so as to play groups off against each other for short-term political gain.
A society that doesn’t glamorize ghetto and thug cultures and doesn’t continuously try to rationalize how they are valuable contributions to “diversity”.’ chickenhead
I don’t mind giving them my bank account info, I have nothing to hide and it will only be a small one-time hassle. But whoopity-shit… they know that I have bank accounts in the USA. So what? What could they use that information for? They can’t check my balance, can they? Maybe with the right legal permissions they could, but how can they determine the source of cash deposits? I guess I’m not sure what good the info will do them.
Pawi, were those off the top of your head, or were they recycled from a commenter from another blog about what Obama should take notice of when he’s in Korea?
Come to Korea and check it out someday P-dog. I’ll buy you a beer.
pawikirogii: You lost me on the last point, but what I thought you were getting at was:
We know there are a hell of a lot of un-paid taxes from E1/E2/E7/ F2/F5 Visa holders and we are gonna start getting ours back, since many get 30% tax free to begin with.
My ten year meter just expired when the wife got the Greencard in Oct., so have have with it!
why is there such a gulf between chickenhead and folks like jd? hint: one thinks he’s big shit only to discover he’s a little shit in korea.
as for my being in korea, won’t answer. won’t play tht game. think what you like. ask me all you want. this will be the last time i address that issue.
So does that mean no more full-of-shit comments about Korea from you because you don’t know what you’re talking about? Stick to what you know, you know, like your own country.
‘Stick to what you know, you know, like your own country.’
arrogant, nasty, expat. oh, the irony.
btw, are you in your country?
The reason pawi won’t address the issue, is because he’s one of several Koreans on this board who get all of their knowledge and ideas about Korea from the internet rather than real-life experience. Listen to him long enough, and it becomes quite clear that he’s never spent any significant time there, and that the ETs he spends all his time attacking are far more knowledgeable about the place than he ever will be. Netizen Kim also falls in this category.
The idealized Korea they both dream of is clearly nothing like the reality.
Ignore this buffoon. As usual, he’s projecting again.
Troll.
‘rather than real-life experience’
bullshit. just more cock and balls from you.
‘The idealized Korea they both dream of is clearly nothing like the reality.’
really, why do i tell people not to go there? you don’t know what your talking about. in fact, just the other day, i told a filipino chick not to go to korea even though she told me it was her fantasy to go. when i told her why, she said she would still go. i told her she’ll be disappointed.
yeah, i think korea is a fantasy land.
imagine some scumbag white guy is going to tell me he knows more about my people than i do. no, you don’t.
ps don’t associate me with nk, ok?
@29/30. Whatever you think of his avatar and penchant for private part metaphors, IHBB consistently “gets it”. 8675309, not so much. pawi, not at all.
Yeah, that wouldn’t be fair. I think I like you pawi. I disagree with you most of the time, but you aren’t all that bad. And you have good avatars. But that NK, he’s nothing short of despicable.
i like you too, cmm. i just wish you met me before going to korea. i would have told you not to go. the place is difficult but you know, you don’t choose your people. koreans are not well liked and they won’t be for the forseeable future. i’ve come to terms with this reality. even so, i still like being korean and i like korean things, and i don’t think they’re as bad as people say they are. in times of crisis, you can’t have a better friend than a korean one. here’s my slogan for non-koreans:
enjoy the koreans without the koreans. that’s the best way.
“enjoy the koreans without the koreans. that’s the best way.”
Maybe, but I’d better check with my wife first . . .
Jeffery Hodges
* * *
Anyone that is a resident of Korea should be paying tax on their global income – not just on income made in Korea (as far as I understand the tax laws). So foreign residents should already be declaring any income they have overseas, such as interest income from bank accounts, by making an annual tax statement. I wonder how many foreigners in Korea do this though – probably very few as they think they won’t get caught.
“Listen to him long enough, …”
But why would you?
imagine some scumbag white guy is going to tell me he knows more about my people than i do.
Actually, racialist thinking like yours is the hallmark of the scumbag.
“My international debit card doesn’t work abroad because I’m a foreigner”…
Mmm, did you know that you need to use your Maestro card as if it’s a credit card on ATMs located abroad? Works every time for me.
“Anyone that is a resident of Korea should be paying tax on their global income – not just on income made in Korea (as far as I understand the tax laws).”
Right, so I should pay taxes to the Korean government on the contents of the one Canadian account I haven’t closed before moving to Korea, which is about 20 years-worth of birthday and Christmas gifts from my grandmothers?
It’s just as stupid as fining Koreans who lose money gambling in Las Vegas.
So, what are they going to do about their slush funds? Yes, politicians are hypocrites.
“Le Marquis Du Sato”?
C’est “de”, pas “du”, mon petit cul.
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