Article 156-7 (1) of the Income Tax Act, Article 207-10 (1) of the Enforcement Decree of the Act
□In order to tighten control on the tax source from foreign dispatched workers, the following revisions will be made:
○Expansion of scope of withholding agents:
-Current: A domestic company whose total payment in return for labor provided paid to a foreign company exceeds 3 billion won per year
-Revised: A domestic company whose total payment in return for labor provided paid to a foreign company exceeds 2 billion won per year
○ Expansion of scope of businesses subject to withholding
– Current: Air transportation, construction and professional, science and technology services
– Revised: Vessel construction and finance businesses added to the list
○ Increase in withholding rate: 17% (current) → 19% (revised)
(Reason for revision) To strengthen management of tax source from foreign employees dispatched to Korea
(Application) Applied to payment for labor provided paid on or after Jul. 1, 2018
