Resident and Non-resident Taxpayers    

Whether one classified a resident or non-resident will determine whether one pays taxes in Korea on only the income earned domestically or on one's worldwide income.

Resident Classification:
- having an occupation which requires residing in Korea for one (1) year or more (even if one has not yet resided in Korea for the full year)
- having family residing in Korea for one (1) year or more due to one's occupation or assets
- having a job overseas for more than one (1) year but who has family or property in Korea
        
Non-resident Classification:
- being a resident of another country and not a resident of Korea
- having worked in Korea for a period of less than one (1) year on a 'project' deemed to be of short duration (less than one year).

Implication of Each Classification:
A person deemed to be a resident of Korea is subject to taxation on her/his worldwide income, while a non-resident will pay taxes on only the income earned from employment in Korea.
Exception: A foreign resident whose combined period of domicile/residence in Korea for the ten (10) years preceding the tax year is less than five (5) years.

Global Taxation:
Under global taxation, Real Estate Rental Income, Business Income, Wages &
Salary Income, Pension Income, and Other Income are aggregated and taxed
progressively. Interest and dividend are also taxed globally with some exceptions.
Retirement Income, Capital Gains are items subject to separate taxation and thus
taxed separately at varying rates.


K4E Note: The above is based on information on the National Tax Service website. It is intended as general information only. For more details, readers should visit the NTS website.
Amendments to the tax laws/rules are often adopted in January of the year in which they will take effect. We do our best at K4E to ensure that the information we provide is accurate and up-to-date.  Should you note any errors or ommissions, please let us know at info@korea4expats.com.