Archived article: This page was originally published in 2018. Korean payroll, social insurance and employment requirements have changed since then, so the former rates and summaries have been retired.
Current Guidance for Hiring Employees in Korea
Foreign companies should review employee classification, employment terms, payroll withholding, social insurance, working-time rules, annual leave and statutory severance using current information and the employee’s actual circumstances.
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Employee and independent-contractor classifications should be determined from the substance of the working relationship rather than the contract title alone. Obtain professional advice before applying a withholding rate or excluding an individual from employee protections or social insurance.
Hello,
I would like to have some clarification with respect to Independent service contract (business income) (비고용관계).
I am a foreign resident who has lived in in Korea for a number of years. On occasion, I am contacted by an agent to teach students. I do not receive payment from the clients directly. Rather, I receive payment from the agent who also takes a sizable percentage of what the clients pay for the services.
My question is as follows, am I taxed the 3.3% withholding tax or does the agent pay based on payments received directly from the clients.
Thank you for your assistance,
David Randolph
David,
Can you please email us: siyoon@theclacc.com
Thank you