South Korea

EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY
Tax rate Progressive tax rate: 6% – 42%
Tax period Calendar year.
Tax residency / Domicile according to domestic law ‘- The term “resident” means any individual who has his/her domicile or place of residence in the Republic of Korea for at least 183 days.
– In any of the following cases, a natural person who resides in the Republic of Korea shall be deemed to have his/her domicile in the Republic of Korea:
1. Where the person has an occupation which usually requires him/her to continually reside in the Republic of Korea for at least 183 days
2. Where the person has a family member who makes a living together with him/her in the Republic of Korea and is deemed to continually reside in the Republic of Korea for at least 183 days in view of his/her occupation or property status.
Tax registration Not required.
Employment income definition A salary, pay, remuneration, annual allowance, wages, bonus, allowance, and other benefits in the nature similar thereto, received by offering labor etc.
Examples of tax exemption Reimbursements of properly documented business expenses (including business trip expenses, per diems, etc.) are not taxable.
Specific expatriate concession
Income of board members Where a corporation pays bonuses to its executives in excess of the amount to be paid under the salary payment standards determined by the articles of incorporation or by resolution at the general meeting of stockholders, the general meeting of employees, or the board of directors, such excess shall not be included in deductible expenses on calculating the Corporate Income Tax.
Tax returns Any resident (including a resident with no tax base for global income or any loss) with the amount of global income shall file a return with the head of a tax office having jurisdiction over the place for tax payment, from May 1 to May 31 in the year following such taxable period.
However, a resident with only wage and salary income may choose not to file a final return on the tax base of the relevant income by May 31.
Tax payments –  When a withholding agent pays monthly wage and salary income, he/she shall withhold income tax according to the simplified tax withholding table for wage and salary income.
– Year-End Tax Settlement of Amount of Wage and Salary Income Tax)
When a withholding agent pays wage and salary income for February of the year following the relevant taxable period or for the month in which a retiree retires, he/she shall withhold income tax as calculated in global income tax amount by applying the basic tax rate to the global income tax base.
TAX TREATIES
Employment income / income from board members Art 15/16 Model OECD Tax treaties
INTERNATIONAL SOCIAL SECURITY
Cross border employments N/A
Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
N/A
Social Security Cost as % from gross salary and absolute amounts In Korea, there are 4 major social insurance schemes : workers’ compensation insurance (“WCI”) against work-related accidents; health insurance (“HI”) (or disability insurance (“DI”)) against diseases and injuries; pension insurance (“PI”) against serious disability, death, old age, etc.; and finally, employment (“EI”) against unemployment.
The contributions are shared between employer and employee
1. PI -9% of monthy salary(Employer 50%, Employee 50%)
2. HI=(a)+(b) (Employer 50%, Employee 50%)
(a) 6.24%of monthly salary
(b) (a)*7.38%
3. EI -1.3% of monthly salary (Employer 50%, Employee 50%)
4. WCI -Depending on company’s industry
Also the contributions are assessed using various ceilings.
IMMIGRATION
Work permit Nationals of another country need a work permit need to obtain a work permit.
Visa Nationals of another contry may apply for the residence permit, if they have at least five years of residence in South Korea.
Residency permits / registration certificate It is not possible to drive in Korea with a foreign issued license only. However, people with a valid foreign driver’s license granted by the responsible government authority can request for an exchange of their driver’s license.
Driving license
STOCK OPTION PLAN
ARTICLE 15 OF THE OECD MODEL
183 days
Notion of employer
Existence of a permanent establishment

Seon Yeong Kim
S.Senior 2
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Address:711, Eonju-ro, Gangnam-gu, 2nd fl(Nonhyun-dong) Seoul 06050, Korea
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