Under the Income Tax Act Article 165-2 (Duty to Submit Documents about Overseas Investment or Real Estate), a Korean tax resident is required to report and submit certain documents to the Korean tax authority on a yearly basis – by end of May every year.
Types of documents to submit to the Korean tax authority for overseas investment or property are as followings, and failure to submit the documents may result in penalties.
- A statement of overseas direct investments;
- Financial statements of the investing corporation;
- A statement of overseas real estate, etc.
However, the recent amendment in Income Tax Act eased this requirement for foreigners in Korea. From January 1, 2018, for short-term foreign residents in Korea, the submission and report of the foreign investment or real estate is exempted.
Short-term foreign residents are those who had a domicile or place of residence for less than five (5) years in total from the recent ten (10) years before the end of the taxable period.
Korea has various favorable tax treatments to foreign residents and foreigners’ investment in Korea. For any questions, please contact us at firstname.lastname@example.org