Calculation of Period of Residence

You must be either tax resident or non-resident for Korean income tax purposes.

From 2015, the relevant tax law changed, the major condition to be a resident in Korea was dramatically tightened up.

Under the Enforcement Decree of the Income Tax Act (EDITA) Article 4, if the duration in which a person had a place of residence in Korea is at least 183 days during two taxable (calendar) periods, the personal shall be deemed to have had a place of residence in Korea.

Also, under the Article 2-2 of EDITA, a non-resident becomes a resident on any of the following day :

  1. The day when the non-resident acquires a domicile in Korea;
  2. The day when the non-resident acquires an occupation in Korea which requires to stay in Korea for more than 183 days;
  3. The 183th day after the non-resident acquires a place of residence in Korea.

Once you become a resident in Korea, your tax obligation shall be different. However, Korea has some favorable tax treatments only applicable to foreign tax residents.

For more information, please contact us.

Email: itos@theclacc.com

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