Foreign Tax Credit allows Korean residents to offset the tax paid or payable on foreign source income in a foreign country against their global income tax amount in the taxation period. This credit can also be included as necessary expenses when calculating the income amount accrued during the period, but this method is applicable only to business income. Scope of Deductibility Foreign source in..

To understand the rules for calculating income tax in Korea, we need to focus on a few key aspects. The provisions related to the computation of tax base apply to the real income, profit, property, act, or transaction, irrespective of its title or form (Article 14 of the Framework Act on National Taxes). Substance Over Form The Korean tax system emphasizes substance over form. This means that th..

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..

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..