Korea - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives

Related content

Residency rules

Payroll considerations

Taxable income

Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

Short-term assignees that stay in Korea for less than one year are considered non-residents.In general, a foreigner working in Korea is subject to Korean tax regardless of the duration of his/her assignment. However, if he/she will stay in Korea for six months or less, he/she may be exempt from Korean tax under the double taxation treaty signed between Korea and his/her home country. Typically the double taxation treaties require the following conditions to be met:

  • the assignee stays in Korea for 183 days or less
  • his/her salary is not paid by a Korean entity
  • the cost of his/her salary is not borne by a Korean entity.

 

Payroll considerations

Are there special payroll considerations for short-term assignments?

Not applicable.

Taxable income

What income will be taxed during short-term assignments?

As a non-resident, the assignee will be subject to Korean tax only on his/her Korean-source income.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Korea?

Not applicable.

© 2016 Samjong Accounting Corp, a Korea Limited Liability Corporation and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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