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..

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..