Our friends at the Korean Tax Blog drafted a post on Korean Start-up Business Tax Incentives. We, at IPG Legal, have written other articles on other incentives, grants, and Korean free trade zones that can be found with a search of this blog, however, we have regrettably neglected many tax incentives. With the increasing cost of doing business in Korea, the Korean government is stepping up and offering incentives for some startup businesses., mature businesses and also businesses wishing to establish regional offices in Korea. The post
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Top 100 Korean Lawyers & Legal Consultants in Korea
Sean Hayes, an attorney for the Top Korean Dispute Resolution Law Firm of the Year was rated by LawAsia, one of the leading peer-reviewed publications in Asia, as a Top 100 Lawyer in Korea. Sean Hayes is one of the only non-Korean attorneys on this Korean Lawyer “A-list” and the only non-Korean that was on the list each year the list was published. Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first
Continue readingKorean Corporate Tax Rate
The Korean Corporate Income Tax law was amended to lower Korean corporate income taxes for 2023. The amendment is applicable for the year 2023 or until amended. For an article on the reduction in Korean Stock Transaction Taxes please see: Korean Stock Transaction Taxes. Tax Basis 2022 (Local Income Tax) 2023 (Local Income Tax) Less than KRW 200 million 10% (11%) 9% (9.9%) KRW 200 million to KRW 20 billion 20% (22%) 19% (20.9%) KRW 20 to KRW 300 billion 22% (24.2%) 21% (23.1%) More than KRW
Continue readingKorean National Pension Contributions and Tax Deductions for Freelancers and Expats Residing in Korea
Can freelance workers apply for Korean National Pension Deductions when Calculating their income tax? Yes, freelance workers in Korea can apply for Korean National Pension deductions when calculating their income tax. The National Pension System of Korea is designed to provide retirement, disability, and survivor benefits to eligible individuals, including freelancers. Thus, the system applies notwithstanding if you are self-employed or employed by a company directly in Korea. When filing Korean income tax returns, freelance workers can include their Korean National Pension contributions as deductible expenses. These
Continue readingKorean Flat-Tax Rate for Foreign Workers in Korea
The Special Tax Treatment Control Law of Korea extended the benefit of the Flat Tax from five years to 20 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 employment start date as January 1, 2014, even if the foreign national worked in Korea prior to 2014. Thus, foreigners shall be able to claim the flat tax until
Continue readingKorean Securities Transaction Taxes
Article 5 of the Presidential Decree of the Securities Transaction Tax Law of Korea was amended to lower taxes on stock transactions. The amendment came into effect on January 1, 2023. KOSPI2022: 0.23%2023/2024: 0.2% 2025: 0.15%* agriculture and fishery tax of 0.15% KOSDAQ2022: 0.23%2023/2024: 0.20% 2025: 0.15% KONEX/OTC 2022: 0.43%2023: 0.35% 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.
Continue readingThe Korean Tax Law Reform Proposal of 2022
The Korean Ministry of Economy and Finance plans to submit the following Korean Tax reform proposal to theNational Assembly and seeks approval before the 2nd of September 2022. The Korean Tax Reform Plan consists of changes with an emphasis on three goals of the new administration: Tax Incentives for foreign professionals working in KoreaThe Korean Government intends to extend a 50% cut to income taxes for highly skilled foreign engineers to 10 years from the current criteria of 5 years. This is to attract a more talented
Continue readingTop Law Firms in Korea for English-Speaking Clients According to 10 Magazine
We are proud to note that 10 Magazine listed us in an article titled 10 Lawyers in Seoul for English-Speaking Expats in Korea. IPG is listed under the title Large/International Law Firms. Thanks for the mention 10 Magazine. We love your work. IPG Legal and many of our lawyers were listed as top attorneys by numerous legal rating services and magazines. Sean Hayes was, also, rated a top 100 Attorney. To learn more about IPG Legal please check out our website at: IPG Legal. The article by 10
Continue readingWhat is a Social Security Totalization Agreement?
The Social Security Totalization Agreement (“Agreement”) works by assigning social security coverage and, in turn, tax liability, to only one country, as determined by the rules of the particular agreement. Thus, these agreements allow you, in short, to avoid double taxation on the same earnings. The United States and South Korea executed a Totalization Agreement. Specific details of the Agreement may be found at: Social Security Totalization Agreement Between the U.S. & South Korea. Rules vary substantially, between agreement to agreement, but all agreements share certain common features,
Continue readingKorean Tax Law Amendments for Individuals for 2021
The Korean National Assembly passed a proposal by the Ministry of Economy & Finance and the Ministry of Interior & Safety related to Taxation of Businesses and Individuals in December of 2020. The Amendments shall take effect in 2021. The following is a summary of the major amendments to Korea’s Tax Code and regulations related to individuals in 2021. For an article on Taxation for Corporations please see: Korean Corporate Tax Law Amendments for 2021. 1. Amendment to Administrative Fines under the International Tax Coordination Law of
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