Mar 10, 2014

Foreign Tax Incentives to be Cut: 17% Flat Tax Law Revised

Special Income Tax Regime for Foreign Workers under Article 18-2 of the Special Tax Treatment Control Act has been amended.  Now the 17% flat tax will, only, apply to:
  1. Employees that are not related parties to their employers.  An exception applies to companies that are authorized to receive tax incentives; and
  2. Employees for, only, a 5-year period. 
Not happy news for many foreigners in Korea. 
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Sean Hayes may be contacted at: SeanHayes@ipglegal.com.

Sean Hayes is co-chair of the Korea Practice Team at IPG Legal.  He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. He has, recently, been ranked as one of only two non-Korean attorneys as a Top Attorney working in Korea by AsiaLaw.