Taxation of international executives
Are there special residency considerations for short-term assignments?
Short-term assignees that stay in Korea for less than 1 year are considered non- residents. In general, a foreigner working in Korea is subject to Korean tax regardless of the duration of their assignment. However, if they will stay in Korea for 6 months or less, they may be exempt from Korean tax under the double taxation treaty signed between Korea and their home country/jurisdiction. Typically the double taxation treaties require the following conditions to be met:
Are there special payroll considerations for short-term assignments?
What income will be taxed during short-term assignments?
As a non-resident, the assignee will be subject to Korean tax only on their Korean-source income.
Are there any additional considerations that should be considered before initiating a short-term assignment in Korea?
All information contained in this publication is summarized by Samjong Accounting Corp, the Korean member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the relevant Korean tax laws and its enforcement decrees; the Web site of the Korean Social Security administration.
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