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

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 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

Do Foreign Property Owners Have to Pay Comprehensive Real Estate Tax in Korea? “I own property in Korea. Could I be subject to Korea’s Comprehensive Real Estate Holding Tax?” If you are a foreigner who owns residential property in Korea, Comprehensive Real Estate Holding Tax may be something you need to check. Being a foreign national does not automatically exempt you from this tax. Under Korean law, liability is generally connected to ownership of taxable property in Korea a

Do Foreigners Have to Pay Inheritance Tax in Korea? “I inherited property or money connected to Korea. Do I have to pay inheritance tax?” Foreigners can also become involved in Korean inheritance tax when they inherit money, real estate, stocks, or other assets connected to Korea. Whether Korean inheritance tax applies is not determined simply by nationality. The deceased person’s tax residency and the location of the inherited property are important factors. When Can Korean

Can Foreign Employees Get Tax Benefits for Rent and Mortgage Interest in Korea? “I work in Korea and pay rent or mortgage interest. Can I get a tax benefit?” If you are a foreign employee working in Korea, you may be eligible for certain housing-related tax benefits when filing your year-end tax settlement. Two important benefits are monthly rent tax credits and mortgage interest income deductions. Monthly Rent Tax Credit Foreign employees who meet the requirements may be eli

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