NH Investment & Securities announced on 24th that it launched the industry’s first "capital gains tax reduction strategy customer choice" service.
"Capital gains tax reduction strategy customer choice" is a service that allows customers to choose the method for calculating capital gains tax on overseas stocks, launched to support investors in making strategic investment decisions.
In the case of NH Investment & Securities, they previously only provided the first in, first out method. The first in, first out method calculates taxes by assuming that the shares purchased first are sold first.
In contrast, the moving average method calculates the average cost of shares regardless of the purchase timing and applies it equally to all sales. While each method may reflect specific trading records differently, the final capital gains are ultimately the same in cases of similar transactions, thus avoiding issues such as tax evasion.
This service can be used through NH Investment & Securities’ mobile trading system (MTS) and home trading system (HTS) and will apply from last year’s earnings. However, if changing from the first in, first out method to the moving average method, it will apply from last year’s earnings, and reverting back to the first in, first out method is not allowed.
Lee Jae-kyung, head of the retail business division, noted, "We plan to continuously develop customer-tailored tax strategies in line with market changes and provide high convenience to customers through a series of processes, including capital gains tax filing services."