The "Individual Income Tax and Benefit Guide for Foreigners 2024" by Korea's National Tax Service (NTS) is an invaluable resource for foreign residents to understand and meet their tax obligations for 2023.

This comprehensive 263-page guide, available in both English and Korean, covers income tax filing, updates to tax laws, detailed filing instructions, and answers to common questions, making it a vital tool for foreign taxpayers in Korea.

Global income tax aggregates various incomes earned through economic activities. Foreign residents with income attributable to 2023 must file and pay global income tax, just like domestic residents. The filing period is from May 1 to May 31 of the following year, with an extension until June 30 for those submitting a compliant filing document. The guide explains who should file, what documents are necessary, where and how to file, and the penalties for late or incorrect filing.

The guide includes updates to tax laws for 2023, such as:

  • The non-taxable meal expense limit has been increased from 100,000 won to 200,000 won per month
  • The income deduction ceiling for housing lease loans has been raised from 3 million won to 4 million won per year.
  • Adjustments have been made to the income tax base brackets and tax credit ceilings, ensuring fair taxation.
  • Pension account benefits have been expanded, with increased deposit ceilings for tax credits and rationalized eligibility standards.
  • The eligibility age for child tax credit has been increased from 7 to 8 years old
  • The education expense tax credit now includes university application fees and college entrance exam fees.

Practical examples for filing tax returns are included, such as cases for individuals with multiple income sources, helping taxpayers understand the process and ensure accurate filings. The guide also features a comprehensive FAQ section addressing common issues and concerns, such as tax liability for foreign English teachers, reporting income generated overseas, and handling different types of income, including wages, salaries, business income, and pension income.

Various methods are available for filing and paying taxes, including HomeTax e-filing, mobile e-filing, in-person filing, and assistance from tax agents. The guide provides detailed instructions on using these platforms and the required documentation for filing. Proper bookkeeping and compliance with documentation requirements are emphasized, detailing penalties for non-filing, incorrect filing, late payment, and non-compliance with documentation standards.

This guide is essential for foreign residents and workers, business owners, tax professionals, and researchers. It helps individuals understand their tax obligations and the filing process, avoid potential penalties, and take advantage of available tax benefits.

For detailed information and to access the full "Individual Income Tax and Benefit Guide for Foreigners 2024," you can download the guide from the following link: http://tiny.cc/TaxGuide2024