Korean Tax Blog

What Tax Documents Should Foreigners Keep Before the End of the Year? “Tax season is still months away. Do I need to prepare anything now?” If you are a foreign employee working in Korea, it is a good idea to start keeping track of your tax-related documents before the year ends. Preparing your documents in advance can make the Korean year-end tax settlement process easier and help you avoid missing important deductions or tax credits. What Documents Should You Keep? Dependin

What Business Expenses Can Foreigners Deduct in Korea? “I run a business in Korea. Which expenses can I deduct from my business income?” For foreign business owners, understanding deductible business expenses can be an important part of managing Korean taxes. In general, expenses that are directly related to earning business income may be recognized as necessary business expenses when calculating taxable income. What Are Deductible Business Expenses? For an individual busines

How Do Foreigners File Income Tax in Korea as a Business Owner? “I’m a foreigner running a business in Korea. How do I file and pay income tax?” If you operate a business in Korea as an individual business owner, you may have to file a Global Income Tax Return (종합소득세 신고) in Korea. Being a foreigner does not automatically exempt you from Korean income tax. When Do Foreign Business Owners File Income Tax? Korea generally requires individuals with business income to file their a

Do Foreigners Working Remotely in Korea Have to Pay Korean Tax? “I work for a foreign company, but I live and work remotely from Korea. Do I have to pay Korean tax?” This is becoming an increasingly common question among foreigners living in Korea. The answer depends on factors such as your tax residency, where you perform your work, and the nature of your employment and income. Working for a Foreign Company Doesn't Automatically Mean No Korean Tax Some people assume that if

Do Foreigners Pay Tax When Buying a Property in Korea? “I’m a foreigner living in Korea. If I buy a house or apartment in Korea, do I have to pay taxes?” Yes. Foreigners who purchase real estate in Korea can be subject to the same major property-related taxes as Korean buyers. However, the exact taxes and amounts can depend on the type of property, purchase price, and individual circumstances. What Taxes Do You Pay When Buying Property? The main tax you should be aware of whe

Korea’s Exit Tax: What Foreigners Leaving Korea Need to Know “I’m planning to leave Korea and move abroad. Will I have to pay tax on the stocks I own?” If you are a foreigner living and working in Korea and planning to move abroad, it is important to understand Korea’s Exit Tax before you leave. What Is Korea’s Exit Tax? Korea’s Exit Tax may apply to unrealized gains on certain stocks and other assets when a person who meets specific requirements leaves Korea. In simple terms

Korea Crypto Tax: What Will Change in 2027? “If I sell my cryptocurrency for a profit, will I have to pay tax in Korea?” This is an important question for foreigners living and investing in Korea. Korea’s taxation system for income from virtual assets is scheduled to take effect on January 1, 2027. The implementation has been postponed several times, including another two-year postponement through tax legislation enacted in December 2024. Under the current rules, income from

Working as a Freelancer in Korea? What Taxes Should Foreigners Know About? “I’m working as a freelancer in Korea. Do I need to pay Korean taxes?” This is a common question among foreigners who work independently, provide services, or earn income outside of a regular employment contract. The answer depends on the type of work you do and how your income is classified for Korean tax purposes. 1. Freelancer Income Can Be Taxable If you independently provide services in Korea and

Do Foreigners Have to Pay Gift Tax in Korea? “My parents want to send me money from overseas. Do I have to pay tax in Korea?” This is an important question for foreigners living in Korea, especially when receiving money or property from family members. The answer depends largely on your Korean tax residency status and where the gifted property is located. 1. Does Korea Have a Gift Tax? Yes. Korea imposes gift tax (증여세) when property or economic value is transferred to another

Korean Year-End Tax Settlement: What Foreign Employees Should Know If you work for a company in Korea, you may have heard the term “Year-End Tax Settlement” (연말정산). But what exactly is it, and do foreign employees have to do it? What Is Year-End Tax Settlement? Year-end tax settlement is the process of calculating your final income tax for the year based on your salary, deductions, and tax credits. Your employer withholds income tax from your monthly salary throughout the yea