Korean Job Discussion Forums

[wylies99]

Expatriates also entitled to annual tax deduction
http://joongangdaily.joins.com/article/view.asp?aid=2898439
December 11, 2008
Foreigners who are categorized as residents are subject to income tax on all income derived from sources both within and outside the country and can receive a tax deduction.

Eligible expatriates are those that have an occupation requiring them to reside here for one year or longer or those who have a family in Korea and are likely to live here for one year or more in view of their occupation or assets held in this country. According to the National Tax Service, a nonresident is not entitled to the basic deduction.

If a person gains earnings from employment both in Korea and another country, he must report all of the income for that tax year for a year-end tax settlement. He is entitled to foreign tax credits for the taxes already paid in another country.

Because the official Web site for year-end tax settlements run by the tax agency is only in Korean, the person should submit the documents required for deductions to prove expenses to the withholding agent at his employer. The documents include: an alien registration card as well as copies of receipts for insurance payments, medical expenses, educational spending and donations and credit card use details from credit card issuers. For further information, call the Foreign Taxpayer hotline at (02) 397-1440 or visit www.nts.go.kr/eng.


By Seo Ji-eun Staff Reporter [[email protected]]

[Donald Frost]

Thanks for the information!

[yeoja]

Kudos to you!

[jadarite]

Finally, something concrete I can use to tell the IRS. Thank you very much for this post.

[wylies99]

Can anyone fully explain what this means?

[yeoja]

[sojusucks]

..."and hope for the best.." Yeah, I missed out on the tax rebate that was offered because my previous school didn't file the tax paperwork. Great huh. You might have to go to NTS to make sure the paperwork was filed even after you filed out the paperwork.