Korean Tax Blog

Do Foreign Business Owners Need to Withhold Tax When Paying Employees or Freelancers in Korea? “I run a business in Korea and pay employees or freelancers. Do I need to deduct tax before paying them?” In many cases, yes. If you operate a business in Korea and make payments that are subject to Korean withholding tax, you may be responsible for deducting the appropriate tax from the payment and reporting it to the Korean tax authorities. Being a foreign business owner does not

Will Korea Delay Crypto Tax Again? The 2027 Start Date Still Stands “Korea’s crypto tax has already been delayed several times. Could it be postponed again?” A new proposal has recently been introduced to delay Korea’s virtual asset taxation once again. However, this does not mean another postponement has been confirmed. Under the law currently in effect, income from the transfer or lending of virtual assets is still scheduled to become taxable from January 1, 2027. Why Is An

What Happens If a Foreigner Misses a Korean Tax Filing Deadline? “I was supposed to file a Korean tax return, but I missed the deadline. What should I do?” Missing a Korean tax filing deadline does not necessarily mean that nothing can be done. Foreign taxpayers may still have options to correct the situation, but it is generally better to deal with a missed filing as soon as possible. What Happens If You Did Not File at All? If you were required to file a Korean tax return b

Do Foreign Residents Need to Report Overseas Trusts in Korea? “I live in Korea but have a family trust or other trust arrangement overseas. Do I need to report it?” Starting in 2026, Korea introduced a new reporting requirement for certain overseas trusts. This rule may also apply to foreign residents living in Korea. However, the reporting obligation depends on individual circumstances, including Korean tax residency and the nature of the overseas trust. What Is the New Over

Starting a Restaurant or Beauty Business in Korea Just Got Easier “Are you a foreigner planning to open a restaurant or beauty salon in Korea?” Starting a business in Korea involves several administrative procedures. However, recent changes have made business registration more convenient for certain entrepreneurs. Since August 31, 2026, Korea has introduced a one-stop application service that allows eligible business owners to apply for both business operation notification an

Do Foreign Homeowners Need to Pay Property Tax in Korea by September 30? "I own an apartment in Korea. Do I need to pay property tax even if I'm a foreigner?" If you own residential property in Korea, you may be required to pay Korean Property Tax (재산세) regardless of your nationality. With the September payment deadline approaching, foreign homeowners should check whether they have any outstanding property tax obligations. Who Needs to Pay Property Tax? In Korea, property tax

Korea to Begin Taxing Crypto in 2027: Who Pays and How Much? Korea’s taxation of virtual assets is scheduled to begin on January 1, 2027, after being postponed three times. From that date, income earned from transferring or lending virtual assets will generally be subject to Korean income tax. How Will Crypto Tax Be Calculated? Tax will not be imposed on the entire amount received from selling crypto. Instead, taxable income will generally be calculated based on the actual pr

Do Foreign Employees Have to Pay Tax on Side Jobs or Freelance Income in Korea? “I have a full-time job in Korea, but I also earn money from freelance work. Do I need to pay additional tax?” Possibly. If you are a foreign employee working in Korea and earn additional income from freelancing, consulting, teaching, content creation, or another side job, that income may have separate Korean tax implications. Completing your company’s year-end tax settlement does not always mean

Do Foreign Business Owners Have to Pay Income Tax in Advance in November? “I run a business in Korea. Why am I being asked to pay income tax in November?” If you are a foreign individual business owner in Korea, you may need to check whether Korean Income Tax Interim Prepayment applies to you. This is separate from the regular Comprehensive Income Tax filing that generally takes place in May. What Is Income Tax Interim Prepayment? Korea operates an interim prepayment system f

Can Foreign Employees Claim Tax Deductions for Family Members Living Overseas? “My spouse, parents, or children live outside Korea. Can I still claim them during my Korean year-end tax settlement?” In some cases, yes. Foreign employees who are Korean tax residents may be able to claim certain deductions for qualifying family members even when those family members live overseas. Living outside Korea does not automatically prevent a family member from qualifying for a deduction