Foreign employees or executive officers who start to work in Korea before 31 December 2023 may elect to apply for the flat tax rate of 20.9% (including the local income tax surcharge of 1.9%) for five consecutive tax years, without deductions (non-taxation, tax deductions, tax reductions/exemptions, and tax credits are forfeited). 국세청영문. Help Line. News. 09 MAY Guide to Filing 2022 Global Income Tax Return (English, Chinese, Vietnamese) National Tax Service (NTS) of Korea holds Korea - Vietnam, Korea - Cambodia Bilateral Commissioners' Meetings 12.08.2022. Introduction. South Korea is one of the most economically developed countries in Asia. With a population of over 51 million people, it is essential to understand whether or not South Koreans pay taxes. This article aims to provide detailed information about the tax system in South Korea and how it affects the citizens. The Tax System in South Korea There are different types of taxes in South Korea: income tax, corporate tax, and value-added tax. Good to know: South Korea has signed a tax treaty with several countries to avoid double taxation. Find more information about the National Tax Service website. Income tax. Residents of the Republic of Korea pay income tax on all their worldwide income and shows a similarity to the United States tax code. Residency is defined as residing or maintaining a home in the country for at least one year. Non-residents are taxed only on Korean-source income. Currently, visitors are allowed to make payment and receive tax refunds only at CU convenience stores and other designated shops. By the first half of 2024, visitors will be able to make payment to tax withholding. Non-residents are similarly taxed on income from Korean sources. The tax rates on individual income range from 6% to 42%.When a company is incorporated in Korea, it is deemed a domestic corporation and is liable to tax from worldwide income whereas a foreign corporation is liable to tax on Korean source income. Taxes in South Korea [2023] - A Complete Guide [Clear Finances] Last updated on 7 de April de 2023. South Korea is one of the great economic powers in Asia. It is home to many large companies and one of the largest cities in the world. We analyze the most important taxes in South Korea. Content. Introduction. Taxes on Earned Income. Social Security Taxation rates in South Korea. Foreigners living and working in Korea can pay a flat income or employment tax of 19% on their gross earnings. Or, they'll pay a progressive rate of 6% to 38% on the income they earn. The maximum rate goes up to 42% on income above the Korean Won 500 million. 2bp6.