Double Taxation Concerns Over Overseas ETF Investments
Double Taxation Concerns Over Overseas ETF Investments
The implementation of the revised tax law from 2023 has led to double taxation concerns on the dividend income from overseas ETF investments within retirement pension accounts. With the changes in foreign tax credit methods, investors must pay both foreign and domestic taxes on ETF dividend income within these accounts, potentially affecting investors negatively. Historically, taxes were paid abroad first followed by domestic tax payment, but the revised procedures result in an additional pension income tax after foreign withholding. Such double taxation issues could increase the tax burden on investors, potentially reducing the actual investment returns, consequently lowering the attractiveness of using pension accounts for overseas investments, and may trigger pension aversion. The Ministry of Strategy and Finance has initiated discussions with the financial investment industry to address and resolve these issues. To mitigate these problems, the government is considering measures like pension income tax refunds, which could have a positive impact on restoring the profitability of retirement pension returns.
Related News
서울경제2월 04
[Exclusive] Government Pursues Refund of Pension Income Tax from Dividends on Overseas Stock ETFs in Pension Accounts - Seoul Economic DailySecurities > Bond News: Recently, as a large amount of capital is flowing into overseas stock exchange-traded funds (ETFs) through pension accounts, the government is working on the dividend income generated from this ...
조선일보2월 04
Why Has the Dividend Decreased for Overseas Stock ETFs in Pension Accounts?Why has the dividend decreased for overseas stock ETFs in pension accounts? Changes in foreign tax credit method spark double taxation controversy, causing investor dissatisfaction. The King Ant Research Institute noticed that the dividend deposit alert in the pension account showed a significantly reduced amount compared to last year. What's suddenly causing this? - Mr. Kim, a company employee in his 40s, checks his pension account.
이데일리2월 04
Double Taxation on Overseas ETF Dividends from Pension Accounts Causes Confusion Amid Tax Law Reform - EDailyWith the tax law revised in 2021 taking effect this year, there has been controversy over 'double taxation' on dividend income from retirement pension accounts. Authorities are preparing follow-up measures, but as it requires legal amendments, the market is expected to experience confusion for some time. The Yeouido area in Seoul, a look at the securities market. (Photo=...
SBS Biz2월 04
Pension Account Foreign Stock ETF Dividend Double Taxation Controversy… Government Policy Discussion - SBS BizRetirement pension accounts, designed to provide tax benefits to ensure national retirement security, have become embroiled in a 'double taxation' controversy. This is due to dividend income obtained from overseas indirect investments being taxed both abroad and domestically from this year onward. This issue arises from the reform in the foreign tax credit system that the government implemented in January 2021. Recently, investors in the pension fund industry are finding that ...
연합뉴스2월 03
Controversy Over Double Taxation of Overseas Stock ETF Dividends in Pension Accounts…Government Discusses Measures - Yonhap News(Seoul=Yonhap News) Reporter Song Eun-kyung = Retirement pension accounts, designed to provide tax benefits for securing the people's retirement, have faced double taxation on dividends earned through overseas indirect investments starting this year ...