The Special Tax Treatment Control Law of Korea extended the benefit of the Flat Tax to 20 years from the present five years. The flat tax rate with the local income tax is 20.9%. of the foreign employee’s earned income.
Additionally, the National Tax Services of Korea and the Ministry of Economy & Finance of Korea agreed to deem the starting date for employment to be January 1, 2014, even if the foreigner worked in Korea prior to 2014. Thus, foreigners shall be able to claim the flat tax until December 31, 2033, even if they were employed in Korea prior to 2014. This is great news for long-term residents of Korea.
Additionally, if the foreigner leaves Korea and commences working in Korea again, the limitation period shall commence on the day of reemployment in Korea and not when first employed in Korea.
This amendment to the Special Tax Treatment Control Law of Korea is welcomed by investors in Korea and shall do its part in encouraging more investment in Korea. We have great hope that the present administration shall be much more friendly to investors in Korea. This development and the further development of free trade zones is a great step in the right direction.
For a consultation with an attorney or our in-house CPA, schedule a call with IPG Legal. Please note, that we have an affiliated tax accountant and CPA that files taxes for foreign businesses, foreign employees, and entrepreneurs. Please note your specific need when scheduling a call and we shall get the right person on the line for your call with us.
- Korean Flat-Tax Rate for Foreign Workers in Korea
- Korean Corporate Tax Rate
- Korean Securities Transaction Taxes
- Korean National Tax Service Tax Law News Release to Foreign Corporate Taxpayers: Korean Tax Law Updates
- The Korean Tax Law Reform Proposal of 2022
- 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
- File Your U.S. Taxes in Korea: Earned Income Tax Exclusion/FBAR
- Korean Tax Law Amendment Press Release by Korean Government
- Company Car Expense Deductions in Korea: Korean Tax Law Updates