Foreign workers should file tax returns now.
Foreign workers earning income in Korea should file a tax settlement for 2017 by February 28.
The year-end tax settlement is required for all foreign workers regardless of their term of stay and income generated here. If the amount of tax withheld is larger than the year-end tax, the difference will be refunded -- and vice versa.
Foreign employees should submit related documents certifying deductions and returns to employers from Jan. 20 to Feb. 28. Employers then issue the tax settlement withholding receipts to the employees during the period. The employers should then complete submissions to the National Tax Service by March 12.
Although foreign workers are covered by the same rules as Korean workers, they benefit from the 19 percent flat income tax rate. Some foreign engineers, who are working under a technology transfer contract, or researchers in foreign-invested firms, are entitled to a 50 percent deduction in tax for income made over the previous two years.
Foreign native teachers from countries that enjoy tax benefits may receive exemptions for taxes for income from lectures and research for an average of two years. However, they are excluded from deductions for the housing fund, housing purchase savings and monthly rent.
For further information, call the NTS hotline 1588-0650 or log in to www.nts.go.kr/eng for automatic calculation. Last year, about 563,000 foreign residents, a fourth of the 2.049 million total, filed settlements.
Here are a couple of tips on tricky cases.
(Question) Would a company get deductions for Olympic tickets given to employees?
(Answer) Yes, it would be calculated as deductible expenses.
(Q) Would a retainer fee for lawyers be deductible?
(A) Yes, if it is limited to fees without the right of return.
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|Publication:||The Korea Times News (Seoul, Korea)|
|Date:||Jan 10, 2018|
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