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  • Service: Tax, International Executive Services
  • Type: Regulatory update, Survey report
  • Date: 2/26/2014

Special considerations for short-term assignments 

Taxation of international executives
Residency rules
Payroll considerations
Taxable income
Additional 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.



© 2014 Samjong Accounting Corp, a Korea Limited Liability Corporation and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

 

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Taxation of international executives