2. Easy Guide for Foreigner's Year-end Tax Settlement
1. Easy Guide for Foreigner's Year-end Tax Settlement
Easy Guide for Foreigner's Year-end Tax Settlement Next month, not only domestic workers but also foreign workers will have to make year-end tax adjustments for last year's earned income. According to the National Tax Service on the 3rd, foreign workers ha
i7i7.tistory.com
Previous Posting Page ▲
Calculated income tax ( - ) Tax credit and exemption
(* Income tax is calculated by applying the basic tax rate to the tax base)
1) Tax credit for wage & salary income : The ceiling is 740,000 won 660,000 won 500,000 won and 200,000 won
* Where calculated tax is not over 1,300,000 won : 55% of the calculated tax amount
* Where calxulated tax is over 1,300,000 won : 30% of the amount over 1,300,000 won
2) Taxpayer association credit : 5% of income tax withheld by a taxpayer association
3) Foreign tax credit
* Foreign income tax amount paid or payable in a foreign country
* Tax credit ceiling = Calculated income tax * (foreign source income / global income)
4) Child tax credit : 150,000 won for one child , 300,000 won for two children 300,000 won each for the third child and up subject to basic deduction (children aged 8 and up) Newborn / adopted child : 300,000 won for the first child, 500,000 won for the second child, 700,000 won each for the third child and up
5) Pension account tax credit
12% of deposit in a retirement pension account, pension savings account
* Gross wage & salary income of up to 55 mil. won : 15%, up to 7 mil. won per year
/Pension savigns : up to 4 mil. won : gross wage * salary income of over 120 mil. won: up to 3 mil.won/
6) Special tax credit
* Insurance premium (12% tax credit rate : 15% for coverage insurance for the disabled)
- Coverage insurance : e.g., automobile insurance / Up to 1 mil. won )
- Coverage insurance for the disabled : up to 1 mil. won )
* Medical expenses : 15% tax credit rate,
(expenses for infertility treatment and treatment for premature babies and babies with birth defecs: 20%
- Medical expenses exceeding 3% of gross wage & salary income / ceiling of 7 mil. won per year
- Employees, the elderly /aged 65 or older/ the disabled and infertility treatment expenses : No ceiling
- Expenses for postpaum care facilities of those with total wage & salary income of 70 million won or less : up to 2 million won for birth
- Expenses for cosmetic and plastic surgery and expenses for purchase of health supplenments
: Excluded from deduction
* Education expenses (15% tax credit rate)
- Educiton expenses paid to universities, etc. for employee ; full amount
- Eligible education expenses paid to education institutes, etc. (excluding gradute schools) for those subject to basic deduction (no age limit) exclufing lineal ascendants (ceiling of 3 mil. won per pre- school child and elementary, middle and high school student : ceiling of 9 mil. won per unicersity student)
* Donations : Tax credit and tax deduction apply up to the ceiling for each type of donation
* Designated donations to non- religious organization for relevant year & carried forward
* Monthly rent : 15-17% of rent paid by a household head with no housing and gross wage & salary income not over 70 mil. won (including household members meeting certain conditions) is deducted
Tax determined ( - ) Pre - paid tax
* Standard tax credit : if special income deduction, special tax credit (including politial fund donations)
tax crrdit for monthly rent are not claimed, tax credit of 130,000 won per year shall apply.
(= clsulated income tax - tax credit and exemption)
* Tax prepaid at principal (present) workplace + tax prepaid at secondary (previous) workplace
(= tax datermined - prepaid tax)
Determined tax > pre-paid tax = Pay
Determined tax < pre-paid tax = Refund
Summary of Deductibility of Residents and Non - residents
** Foreign employees can chooose to have the flat tax rate (19%) applied to the relevant earned income pursuant to Article 18-2 of the Restricition of special Taxation Act instead of applying income deduction and tax credit.
Services for Foreign Taxpayers
The NTS offers various tax services for foreign taxpayers to help them better handle their tax matters in korea.
1. NTS English website (www. nts.go.kr / eng > Help Desk)
> [ Q&A / FAQ ] and [Foreign taxpayer Advocate service]
The two services in the Help Desk section enable foreigners to make tax inquires online such as tax difficulties.
> English tax booklets and various forms
(e.g., Easy Guide for foreigner's year-end tax settlement and Individual Income tax and benefit guide for foreigners )
2. NTS English assistance hotline (1588-0560)
> The Hotline offers foreigners tax advice in English over the phone, and is operated by the National Tax Consultation Center of NTS.
'지원사업,정책 > Publication,News_E' 카테고리의 다른 글
| 1. Easy Guide for Foreigner's Year-end Tax Settlement (1) | 2024.01.06 |
|---|
