Introduction to Income Tax in Korea Income tax is a crucial aspect of the Korean tax system, and understanding its intricacies is essential for individuals and businesses operating in Korea. This blog post aims to provide a comprehensive overview of income tax regulations in Korea, covering taxable income, non-taxable income, and tax-exempt income. Taxable Income 1. Types of income subject to gl..

Non-Taxable Income In the Korean tax system, non-taxable income refers to the income for which the tax authority waives its taxing rights. This means that such income is excluded from taxation, and taxpayers do not need to apply for non-taxation status. Various types of income fall under this category, providing certain exemptions for individuals and businesses. Non-Taxable Income Examples 1. In..

Non-global income We will explore the concept of "retirement income" in the context of income tax in Korea. Retirement income refers to a lump-sum payment made by an employer to an employee upon their retirement after a considerable period of service. We'll discuss what is included in retirement income and how it is treated for tax purposes. What is Included in Retirement Income? Retirement inco..

[Income Tax in Korea] Housing rental income we will discuss the key aspects of reporting housing rental income and the associated income tax regulations in Korea. Persons Subject to Reporting Housing Rental Income Individuals who own residential properties meeting any of the following criteria are required to report their housing rental income: Persons owning housing over 900 million won in stan..

Religious person’s income Definition of Religious Person's Income Religious person's income, as defined in Article 21 (1) 26 of the Income Tax Act, refers to the income received by a religion-related worker, also known as a "religious worker," from the religious organization he/she belongs to. This income is related to the execution of a religious rite or any other activity performed as part of ..

Double Entry Bookkeeping and Simplified Bookkeeping Under the Income Tax Act, business operators in Korea are required to maintain proper record-keeping and bookkeeping. This involves keeping necessary documents to calculate their income and recording business transactions using the double-entry system to ensure objective identification of all financial activities. However, there are exceptions ..

Understanding the Standard & Simplified Expense Rate System we will delve into the Standard & Simplified Expense Rate System for income tax in Korea. Whether you're a business operator or a taxpayer subject to this system, understanding the principles and calculations can significantly impact your tax return. The Standard Expense Rate Calculation All business operators are required to file their..

Understanding Taxation for Residents and Non-Residents Taxation in Korea is based on the classification of taxpayers into residents and non-residents. A resident is someone who is obligated to pay tax on their worldwide income in Korea, while a non-resident only pays tax on their domestic-source income. I. Taxpayer 1. Resident A resident is generally an individual who has either their domicile o..

Frequently Asked Questions 1. Global Income Tax Filing by a Foreigner Planning to Depart Korea Q: I am a foreigner, and I have been running my own business in Korea for a few years. I am planning to return to my home country in April this year. Should I file my global income tax return for 2022 in May this year? Also, how should I file a tax return on income earned in 2023? A: If you are a forei..

Understanding Penalty Taxes in the Tax System penalties are imposed to ensure compliance with tax regulations and discourage tax evasion. Understanding penalty taxes is crucial for individuals and businesses to avoid legal consequences and maintain financial stability. Penalty Tax on Non-filing or Incorrect Filing Taxpayers who fail to submit their tax returns on time or inaccurately report thei..

Filing and Paying Taxes for Foreign Workers in Korea we will discuss the process of filing and paying global income tax in Korea for foreign workers. We will cover the locations for filing tax returns, payment methods, penalties for late filing, tax refunds, and reporting overseas income. Let's dive into the details. Where and How to File and Pay Taxes? Where to File Your Return You can file you..

A Guide to Filing Your Global Income Tax we'll discuss the essential aspects of filing global income tax, providing valuable insights and guidance to help you navigate through the process effectively. 1. Who Should File a Return? If you are a foreign resident with global income in the relevant year, you must file a tax return to the head of the competent district tax office, just like a Korean r..

Understanding Global Income Tax for Individuals Introduction we will delve into the concept of global income tax, a crucial aspect of taxation for individuals with income earned through economic activities in a foreign country. We will explore the filing period, necessary forms, and required documents for tax returns. What is Global Income Tax? Global income tax refers to a tax levied on the tot..