Residency rulesPayroll considerationsTaxable incomeAdditional 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.
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Payroll considerations
Are there special payroll considerations for short-term assignments?
Not applicable.
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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.
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Additional considerations
Are there any additional considerations that should be considered before initiating a short-term assignment in Korea?
Not applicable.