The Foreign Taxpayer’s Guide To Korea

PRODUCT

2013년 04월 13일 Sue J. Hur

There is a growing population of foreign workers here.

The National Tax Service, estimated that the number of non-Korean taxpayers surpassed 500,000 in 2012. (That's a significant increase from 403,000 in 2010 and 465,000 in 2011!)

Foreigners must file for their year-end tax settlements, but NTS provides a set of guidelines you can follow.

Foreign residents must submit tax forms on the same day as Korean citizens, but tax treatments differ slightly. If you are a foreigner, you are entitled to a flat taxation rate of 15% and are excluded from deductions of housing funds and home purchase savings. Medical and educational expenses deductions also do not apply. Teachers and engineers who meet certain requirements may be exempt from tax, although for a prescribed period.

Applicants must submit the final return documents to the employeer at the beginning of the year (usually 25th January - 10th February) and collect a withholding tax receipt by the end of February. The tax refund takes place at the end of March.

NTS provides special services including the English version of the Easy Guide and an automated calculation program. You can access the NTS English website here: http://www.nts.go.kr/eng.

You can alo access the simplified year-end tax settlement website here: http://www.yesone.go.kr.

Free consultation in English is also available at district tax offices. Teleconsultation service is available at 1588-0560.

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