Most Americans/American permanent residents living abroad are required to file a U.S. Income Tax Return in order to avail themselves of the Foreign Earned Income Tax Exclusion. The Exclusion allows a taxpayer not to pay U.S. taxes on all of one’s earning under a specific threshold. You may lose the Exclusion if you do not file the return. You can file your U.S. taxes from within Korea.
The Earn Income Tax Exclusion may be filed via IRS Forms 2555 or 2555-EZ. Additionally, Americans/American permanent residents must report certain assets above a specific reporting monetary threshold. Additional information may be found at: IRS
Additionally, if a United States person (defined as citizen; resident; entity including but not limited to, corporations, partnerships, or limited liability) has a financial interest in/ signature authority over a foreign financial account then the electronic filing of the Report of Foreign Bank and Financial Accounts (FBAR) is required if the aggregate value of the foreign accounts exceed $10,000 at any time during the calendar year.
The FBAR must be received by the Department of Treasury on or before June 30th of the year immediately following the calendar year being reported.
For more information on FBAR please see: FBAR Reporting.
- Filing your U.S. Taxes as an Expat in Korea: Foreign Earned Income Tax Exclusion
- U.S. Taxation of American Citizens/Permanent Residents Living Abroad
- Foreign Account Tax Compliance Act (FACTA) in Korea
- Korean National Tax Service Tax Law News Release to Foreign Corporate Taxpayers: Korean Tax Law Updates
- Korean Tax Law Amendment Press Release by Korean Government
- Can a Foreign Company be Deemed a Domestic Company for Tax Purposes and Taxed on Worldwide Income?
- Korean Real Estate Acquisition Taxes for Purchase of Real Estate in Korea
- Tax Liability of Controlling Shareholders in a Korean Company: Tax Law Updates
- Korean Tax Laws on Entertainment Companies in Korea: Overseas Tax Deductions
- Korean Tax Risk of Foreign Corporation Deemed “Actual Business Management Locale” within Korea: Korea Tax Law Basics