Foreign stock capital gains tax in 2026 is due when your annual profits exceed $1,850 (₩2.5 million), taxed at 22%. You can now easily file this yourself through Hometax using your brokerage's PDF statements, saving on agent fees if your profit is below this threshold.
How to File Foreign Stock Capital Gains Tax in 2026 via Hometax
Filing your foreign stock capital gains tax directly is straightforward using South Korea's National Tax Service Hometax platform. Navigate to 'Tax Filing' > 'Capital Gains Tax Filing' > 'Regular Filing' > 'General Filing'. Select 'Finalization' for the filing type, 'Foreign' for asset classification, and 'Foreign Stocks' for the asset type. Ensure you choose the correct tax year. I found that even when using multiple brokerages, consolidating the filing process here was efficient. When entering your capital gains details, specify 'US/United States' for the country and 'US Stocks Combined' for the asset description. Accurately input the sale date, number of shares, acquisition cost, necessary expenses, and sale price, all based on your brokerage statements. Remember, the tax is calculated on profits exceeding $1,850 (₩2.5 million) annually, with a 22% tax rate applied to the remainder. If your total profit is below this amount, your taxable income is $0, meaning no tax is owed.
Submitting Brokerage PDF Statements for Foreign Stock Tax Filing
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In the 'Attachments' section of the filing process, you'll upload PDF documents provided by your brokerages. If you use multiple brokers like Kiwoom Securities or Korea Investment & Securities, gather and submit the statements from each. Ensure any password-protected PDFs are unlocked before uploading. I personally submitted three separate PDF files, one for each brokerage I used, as my annual foreign stock profits were under the $1,850 (₩2.5 million) threshold. Since I owed no tax, attaching the brokerage PDFs was sufficient proof of my transactions. However, if your annual profits exceed $1,850 (₩2.5 million) and you owe taxes, using the Excel upload feature is highly recommended. This function acts like a detailed ledger within the Hometax system, ensuring all your trading activities are properly recorded for tax purposes.
Foreign Stock Capital Gains Tax Filing: Direct Filing vs. Tax Agent Services
You have two main options for filing your foreign stock capital gains tax: doing it yourself or hiring a tax professional. Based on my experience, many brokerages won't offer their tax agent services if your annual profits are below $1,850 (₩2.5 million), which led me to file directly. If your profits exceed this amount, using a tax agent service is significantly more convenient. They handle everything up to the tax bill issuance, leaving you only to make the payment. Last year, I strategically sold some losing stocks and immediately repurchased them to offset gains and reduce my tax liability. This year, my profits are around $2,200 (₩3 million), so I'm utilizing a free brokerage tax agent service. This is not financial advice. Consult a licensed financial advisor before making investment decisions.
