Taxpayers who traded real estate, stocks or other assets must file their final capital gains tax return by June 1, South Korea’s National Tax Service said. The agency has sent filing notices to about 220,000 people and is expanding support for simplified online filing through Hometax.
The NTS said it began sending mobile notices on the 4th to about 220,000 taxpayers required to file final capital gains tax returns for 2025 income. Those include people who sold real estate, stocks or other assets last year but did not file a preliminary return; those who made two or more transactions but did not file a combined return; and traders of overseas stocks and derivatives.
Returns are due by June 1 and can be filed electronically via Hometax (PC) or Sontax (mobile), or by visiting a tax office or filing by mail. Payments can be made by bank transfer, credit card or simple payment services, and taxpayers owing more than 10 million won may pay in installments.
To make filing easier, the NTS said it strengthened Hometax assistance tools, including a “pre-fill” function that automatically loads preliminary filing data and a “tax rate selection helper” that applies rates based on entered information and provides step-by-step guidance.
The agency also provides electronic filing guides, videos, sample filings and common error examples. Supporting documents can be submitted by photographing them with a smartphone or sending them through a virtual fax service.
The NTS said it continues to find a range of tax evasion cases amid recent changes in the real estate market. Common methods include using false contract prices, inflating deductible expenses, improperly applying tax exemptions and conducting low-price transactions between related parties.
The agency said it has uncovered cases such as reporting a lower-than-actual price when reselling subscription rights for new apartments, exaggerating interior renovation costs to reduce capital gains, and claiming the one-household, one-home exemption despite effectively owning two homes.
An NTS official said the agency will work with related institutions, including the Real Estate Market Monitoring Task Force, to closely analyze real transaction data and money flows, and will “track down transactions with suspected evasion to the end and collect unpaid taxes without exception.” The official added that the NTS will “thoroughly verify” cases involving intentional misreporting or irregular transactions through intensive tax audits.
* This article has been translated by AI.
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