If dividends land straight in an overseas brokerage account, or you earn interest at a foreign bank, you may need to file a comprehensive income tax return in May even for small amounts. The interest and dividends that Income Tax Act Article 14(3)6 keeps out of comprehensive income are those whose total is 20 million won or less and that were withheld under Article 127. Because both conditions are joined, foreign interest and dividends not withheld in Korea read as being added even below 20 million won. Article 70(1) requires residents with comprehensive income to file between 1 and 31 May of the following year. Enter the two amounts to see what is added and whether you need to file.
1. Withheld interest and dividends totalling 20 million won or less: withholding is final (Art. 14(3)6).
2. Foreign interest and dividends not withheld in Korea are added even under 20 million won — file 1–31 May next year (Art. 70(1)).
3. Over 20 million won, everything is added; foreign tax paid is credited within the Art. 57 limit.
Checker
Updates as you type. Interest and dividends stay out of comprehensive income only if their total is 20 million won or less and they were withheld under Art. 127 (Art. 14(3)6). So anything not withheld in Korea is added even below 20 million won, and returns are due 1–31 May of the next year (Art. 70(1)). Leave out income taxed separately under items 3 to 5 (our example: ISA). This checks financial income only; other income may need a return on its own.
The provisions
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Income Tax Act Art. 14(3)6 | Interest and dividends outside items 3–5 (excluding silent-partner dividends) whose total is 20 million won (the threshold) or less and that were withheld under Art. 127 are not added in computing the comprehensive tax base | The two conditions are joined |
| Income Tax Act Art. 14(3)3–5 | Interest and dividends withheld at the Art. 129(2) rates, those of certain non-distributing groups, and income taxed separately under the Restriction of Special Taxation Act are also not added | Leave these out of the checker |
| Income Tax Act Art. 70(1) | A resident with comprehensive income for the year must report the tax base from 1 May to 31 May of the following year to the head of the local tax office | — |
| Income Tax Act Art. 57(1) | Foreign income tax paid on foreign-source income may be credited against the tax computed within the limit (tax computed × foreign-source income ÷ comprehensive income) | Keeps you from paying twice |
| Income Tax Act Art. 17(1)6 | Profits or surplus distributed by foreign companies are dividend income | Dividends on foreign shares are dividend income |
The key word is “withheld”. When you get foreign dividends through a Korean broker, the Korean institution withholds 14% minus the foreign tax under Art. 129(4). But if the foreign tax was 14% or more and nothing was withheld in Korea, the articles do not say directly whether that counts as “withheld income”. If you have such dividends, check the withholding details on your broker’s statement and ask the tax office (ours).
Three sums — our example
| Case (our example) | Amount added | Worth noting (ours) |
|---|---|---|
| 5 million won of Korean deposit interest (withheld) + 3 million won of dividends paid straight to an overseas account | 3 million won · file in May | The total of 8 million is under 20 million, but the unwithheld 3 million is added |
| 15 million won Korean + 6 million won foreign direct | 21 million won, all of it | Over 20 million, so even the withheld part is added |
| 10 million won Korean + nothing foreign | Nil | No return needed for this financial income |
All three are our examples. How much tax the added 3 million won attracts depends on your other income and deductions, so the checker does not compute it. The foreign tax credit limit is worked out in foreign dividend tax credit calculator.
What to gather before filing — our list
- The overseas account’s yearly dividend and interest record (dates, amounts, foreign tax)
- Your Korean institutions’ income statements (withheld interest and dividends)
- A foreign tax credit application if you are claiming the credit (Decree Art. 117(3))
- How foreign-currency amounts are converted to won — we did not read that provision, so follow the tax office’s guidance
Checklist
- ☐ Any interest or dividends paid straight to an overseas account?
- ☐ Total the withheld and unwithheld amounts separately
- ☐ Is the total over 20 million won?
- ☐ File between 1 and 31 May next year
- ☐ Credit foreign tax within the Art. 57 limit
Questions that remain
Even for a tiny amount?
The exclusion in Art. 14(3)6 does not state any minimum amount. We did not read what penalty applies for not filing.
Do gains from selling foreign shares go here?
No. Gains on selling foreign shares are capital gains, not interest or dividends, and are reported separately — see overseas stock capital gains calculator.
Sources
- Korean law database (law.go.kr) — Income Tax Act Arts. 14, 17, 57, 70 — source (current text, effective 1 July 2026, Act No. 21221; checked 26 October 2026). Art. 14(3)3–6 (separately taxed items; withheld interest and dividends up to 20 million won), Art. 17(1)6 (foreign company dividends), Art. 57(1) (foreign tax credit limit), Art. 70(1) (1–31 May return), Art. 129(4) (withholding less foreign tax).
- Korean law database — Income Tax Act Enforcement Decree Art. 117 — source (current text, effective 1 October 2026, Presidential Decree No. 36737; checked 26 October 2026). Filing the foreign tax credit application.
- Not read. The non-filing penalty provision, currency conversion rules, interpretations on dividends withheld at nil.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Your local tax office and the NTS income tax filing guide — how to report foreign financial income.
- Your overseas broker or bank’s annual statement — amounts paid and foreign tax.
Written on 26 October 2026. The content is from the source; the glosses are ours.
