21,822 Required to File Preliminary Capital Gains Tax Returns on Share Transfers for First Half of This Year by End of Month

Preliminary Reporting Required for Major Shareholders Who Transferred Listed Stocks
Overseas Shares Must Be Reported and Paid in May Next Year

Major shareholders who transferred domestic listed shares in the first half of this year are required to file and pay a preliminary report by the end of this month.

The National Tax Service announced on August 5 that it is providing preliminary reporting guidance services—including information on reporting obligations and methods—to 21,822 individuals subject to preliminary capital gains tax reporting on share transfers. The number of people receiving preliminary reporting guidance increased by 6,171 (39.4%) compared to February this year (15,651 people).

The reporting subjects are: (1) major shareholders who transferred listed shares between January and June 2026, (2) minority shareholders who conducted over-the-counter transactions in listed shares, and (3) shareholders who transferred unlisted shares. For listed shares, a major shareholder refers to someone whose ownership percentage or market capitalization met the major shareholder criteria as of the end of the previous business year, or someone who acquired additional shares after the end of the previous business year to satisfy such criteria.

There is no obligation for preliminary reporting for overseas stocks, so taxpayers who realized capital gains from the transfer of overseas stocks during the first half of this year must report and pay their taxes during the final reporting period in May 2027 instead of this preliminary filing period. However, even if losses were incurred from overseas share transactions, final reporting is necessary if there are capital gains from transfers of domestic stocks subject to capital gains tax, as loss offsets are permitted within the same period.

Those subject to preliminary capital gains tax reporting for share transfers in the first half of 2026 must file electronically (through Hometax or SONTAX) or submit a written report to the tax office responsible for their registered address by August 31.

Starting this filing cycle, the National Tax Service has introduced a notification window on the Hometax reporting page regarding deferred taxation for share transfers, to help taxpayers avoid errors in the acquisition cost when transferring shares received as gifts from spouses or direct ancestors/descendants over the short term. Additional support services include pre-populated forms with share information, transfer details, and capital gains amounts, as well as inquiry services for share transaction histories and reporting assistants for share transfer filings.

An official from the National Tax Service stated, "After returns are filed, the National Tax Service conducts in-depth analyses to verify the accuracy of filings, and cases of additional capital gains tax assessments on share transfers are being continually identified. We will intensify our verification of cases by type in which tax evasion is persistently detected, so we urge taxpayers to recognize that 'faithful reporting is the best way to minimize taxes' and to file their returns correctly."

This content was produced with the assistance of AI translation services.