Under the Article 59-5 of Korean Income Tax Act, one of the following salary income is subject to tax exemption. Application of the tax exemption needs careful calculation, thus you may need to seek for tax advice on this.
- Wage & salary that a foreigner dispatched to Korea under an inter-governmental agreement
- Income earned from overseas navigation of ships or aircraft operated by a resident who is not a national of the Republic of Korea, provided that the principle of reciprocity applies to income exemption
- A foreign engineer’s wages & salary income under Article 18 of the Restriction of Special Taxation Act : Income tax exempted by 50% for wage & salary income generated from the first day of providing service in Korea (applicable through December 31, 2018) until the month to which the day on which two (2) years elapse from such day belongs.