Comprehensive Income Tax Reporting for Foreign Residents in Korea

The National Tax Service of Korea has announced that foreign residents with comprehensive income are required to file their comprehensive income tax returns this month, similarly to Korean residents. The deadline for submitting these returns to the tax office responsible for their place of residence (address) is the 31st of this month.

Comprehensive income includes various types of earnings such as interest, dividends, business income (including real estate rental), wage income, pension income, and other income sources.

Furthermore, even non-residents who operate a business in Korea or have real estate income must file a final comprehensive income tax return for any income sourced in Korea. A resident is defined as an individual who has an address in Korea or has stayed in Korea for 183 days or more, while those who do not meet this criteria are considered non-residents.

For foreigners who qualify as residents in Korea, it is mandatory to report all income earned globally. However, if the sum of periods they have had an address or residence in Korea since ten years prior to the end of the tax period is less than five years, they are only required to report income that is paid in or remitted to Korea.

The National Tax Service also clarified that non-residents who have only wage income must perform year-end tax settlements just like residents. However, if they cannot complete this, they must declare it during this comprehensive income tax finalization.

The comprehensive income tax reporting process can be complex and challenging for foreigners residing in Korea. Consider utilizing our tax office services, where we manage the reporting process on behalf of foreign residents, ensuring compliance and simplification of the taxation process.

For more details, please feel free to reach out at jz@taxjz.com or If you would like a consultation with an English-speaking Consultant/Accountant in Korea, please schedule a call at: Schedule a Call with Jz