1.Taxpayer (Income tax law Article 1 of 1)

▶Resident
A person who has a domicile or has resided or worked in Korea for 183 days or longer during two consecutive years is subject to income tax on all income derived from sources both within and outside of Korea.

2. Taxable Income (Income tax law Article 2 of 20)

▶ Class B
Wages and salaries received from a foreigner or foreign corporation outside of Korea.
(Excluding the Korean branch office and Korean business office of a foreign corporation: In this case, income tax is 'Class A' )

3. Taxpayers Association (Article 149, 150-3)

'Class B' wage and income earners may organize taxpayer association through which they may pay taxes. If taxpayer pays taxes through taxpayers association, the taxpayer would get the benefit of a 5% Tax Credit for payment of taxes. .

19% Flat Tax Rate only for Foreign Taxpayer

According to the Tax Incentive and Limitation Law, Foreign worker pays income tax based on 19% flat tax rate when his income tax rate is over than 19% based on Korean progressive tax rate. In this case, all Tax deduction including 5% Taxpayers Association Deduction shall not be applicable.

Immigration Control Law

According to the revision of Korean immigration control law from January, 2006 (November, 2005 in Geoje) if foreigner wants to renew his visa and alien registration card, he should submit his Certificate of Tax Full Payment.

GTA member will be given the certificate conveniently.