Frequently asked questions for Individual tax in Korea

Welcome :)

I'm trying to explain about the tax reporting system in Korea. 

Check up the following information.

1. Who needs to report?

 

 A resident who has domicile in Korea or a place of residence for 1 year or more in Korea has a duty to report to NTS.

 

 A taxpayer who falls within the following cases is deemed to have a domiclie in Korea

 

- Who has an occupation which require to redide in Korea for 1 year or more

 

- Who has his/her family in Korea and is likely to reside in korea for 1 year or more based on his/her occupation or assets held in Korea

 

-> if you're not sure about Korea resident or not, just give me an email including your information.

 

2. When do I have to report?

 

It may be different depends on if you are an employee or an Individual.

 

Principally every taxpayer(execpt Corporation) reports their income next year May 1- May 31. But if you only have an income as a employee, your duty might be closed as 'Year-end Tax Settlement' usually done by the person who gives you the payment.

 

3. Where do I report and pay?

 

You should report to your district tax office(based on domicile). As well as reporting, payment must be done by May 31.

 

4. Do I have to report all of the income?

 

Yes, If you are a resident you need to add up all of the income including from foreign.

When you report such foreign income on your return, you can take either a deduction or a credit for income taxes imposed on the income by a foreign country. Tax treaties with other countries may affect whether you are eligible for this credit.

 

5. What happens if tax losses happen?

 

You may get refund limit to as you payed before, meaning withholding tax.

Normally the process for the returns takes at least 4 weeks.

 

6. What happens after the report?

 

When you report your income with the information, NTS will review about it with the information they have. Sometimes NTS might ask you for documents to verify the deductions or credits you claimed.

So you should keep your receipts and things for at least 5 years.

 

7. I've got incomes from several place, How can I report it?

 

If you're a resident in Korea, you need add-up all your income and report it by May 31. Also If you are withholding by 3.3% it means that you're not an employee but individual. Then you might need to also report Financial statements.

 

 

There are so many cases on foreign report. So I can't just inform as A or B.

For more information, don't hesitate to ask me :) 

Kakao ID: taxmate

Email: jayjang@gmail.com