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,
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The 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.
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
Continue readingCan a Foreign Company be Deemed a Domestic Company for Tax Purposes and Taxed on Worldwide Income?
If Korea deems a foreign-incorporated company a Domestic Corporation, the company shall be taxed on its worldwide income. The relevant law, this determination is made under, is the Corporate Tax Act of Korea (“CTA”). In the typical case, the National Tax Service of Korea designates the foreign-incorporated company as a Domestic Corporation and requests details on overseas earnings in order to impose taxes on overseas earnings. Of course this leads, invariable, to your Korean tax lawyer challenging the determination to
Continue readingTax Breaks for Korean Landlords: Real Estate Taxation Basics
Proposed by the Chairman of the Strategy and Finance Committee of the Republic of Korea on September 20, 2018, the Amendment to the Korean Restriction of Special Taxation Act came into force on January 1, 2019. The amendment has decreased the taxation burden of some landlords. The Act was amended in favor of Korean landlords who renew long-term rentals with tenants by charging a lower increase of rent by a percentage lower than a percentage set by Presidential Decree. This
Continue readingCompany Car Expense Deductions in Korea: Korean Tax Law Updates
Companies, in Korea, sometimes provide senior employees of the company a company car. A tax issue arises concerning the deduction of car expenses and the refunding of VAT. In practice “company cars” are, often, used for the company as well as private use. Thus, Korea has excluded the deduction of expenses and the exclusion of VAT for some automobiles. Corporate Tax Law formalities require Korean companies and Foreign Capital-Invested Companies, in Korea, to have detailed operation records or sufficient evidence
Continue readingKorean National Tax Service Tax Law News Release to Foreign Corporate Taxpayers: Korean Tax Law Updates
The following Korean Tax Law News is a publicly released Korean tax notification that is intended for foreigner companies in Korea. The notification was not translated or drafted by this law firm. For any questions on this notification please Contact Us. Korean Tax Law News 【January 2018】 ☞ The following Korean tax information is translated from Korean for foreign-invested companies, and is not legally binding. ※ Year-end tax settlement by foreign workers in Korea □ With the increase in foreigners
Continue readingKorean Tax Law Amendment Press Release by Korean Government
The following is a Press Release by the Korean Government on recent Korean Tax Law enforcement decrees. We shall update the reader when more is known. The following press release was not proofread or translated by this firm. The Press Release was published by the Ministry of Strategy & Finance in the English language and copied, in its entirety, below. Decree Focuses on Boosting Investment and Broadening Tax Base The government announced a revision to a total of 17 tax
Continue readingKorean Real Estate Acquisition Taxes for Purchase of Real Estate in Korea
The following are the Korean real estate acquisition taxes for the purchase of real estate in Korea. These acquisition taxes are applicable to the purchase of an apartment, land, or commercial property. Taxes in Korea change, often, when new administrations come into office. Thus, these taxes may change, thus, please consult with your real estate agent and/or accountant. Foreigners may purchase property in Korea, certain restrictions do apply to the purchase of property by foreigners. Basic Taxes Related to the
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