Korean Tax Blog

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

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

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

Enrolling in the National Pension offers a significant tax-saving benefit. This benefit applies to both employees and self-employed...

As an expat in Korea or living abroad, understanding the Korean tax system can be a daunting task. This guide aims to simplify the...