국세청고객만족센터장최남익

Transcription

1 Tax Guide for Foreign Taxpayers in Korea 외국인세무상담사례집

2 국세청고객만족센터장최남익

3 To Our Readers: The National Tax Service of Korea seeks to be more responsive to foreign taxpayers question to help make their fulfillment of Korean tax obligations an easier task. For prompt answers, questions may be placed through the NTS English website (at or the NTS English Assistance Hotline (at ). The questions received through these channels cover a full spectrum of tax topics, including: year-end tax settlement on wage and salary income; correct calculation of taxable income and taxes due; tax payment procedure; treatyprescribed scope of taxable income and applicability of treaty-reduced tax rates; and application for business registration. In endeavoring to address these questions, the NTS published a revised version of Tax Guide for Foreign Taxpayers in Korea since its first version in The publication contains more comprehensive sets of frequently asked questions from foreign taxpayers and the corresponding answers provided by our most experienced field experts. Each Q&A set is offered in both English and Korean so that not only foreign workers, but Koreans to whom their services are provided (withholding agents) may fully benefit from this book. It also contains tax Forms most widely used, for your reference. The NTS hopes that this publication will serve as a useful guide in helping you better understand the Korean tax law and in providing answers to your questions. November, 2012 Choi, Nam-ik Commissioner for Customer Satisfaction Center National Tax Service

4 목차 제 1 편외국인상담사례 제1장거주자와비거주자의구분 ( ) 제2장외국인의연말정산 () 74

5 Contents Part 1 FAQ's and NTS Answers Chapter 1 Classification between Resident and Non-resident for Tax Purposes Determining Resident Status Tax Liability of Resident and Non-resident Taxation of Non-residents (Global Taxation and Separate Taxation) 23 Table 1. Individual Income Taxation of Korea 27 Table 2. Taxation on Domestic Source Income of a Non-resident 29 Table 3. Taxation on Korean-source Income of a Non-resident 31 Chapter 2 Year-end Tax Settlement of Foreigners 33 Overview of Year-end Tax Settlement for Wage & Salary Income Wage and Salary Income: Definition Wage & Salary Income earners and Year-end Tax Settlement Income Tax Filing of Wage & Salary Income earners Wage & Salary Income earners and Four Social Insurance Programs Employees who depart Korea Permanently or move to another job in the same year Calculating Taxes on Income from Employment Taxation on Foreign-source Income Taxes withheld Monthly from Salary by Employer Difference in Tax Treatment of Wages&Salaries Between Resident and Non-resident Personal Deductions Deductions for Education Expenses Deductions for Charitable Donations Registering for Cash Receipt System Deductions for Cash Receipt Usage Deductions for Rent through Cash Receipt Issuance 75

6 제3장외국인의종합소득세신고 제4장외국인에대한과세특례제도 () () 140

7 19. Simplified Year-end Tax Settlement Currency Conversion of Wage & Salary Paid in Foreign Currency Finding of the outcome of the year-end Tax Settlement The Responsibility Whether to File an Income Tax Return or not The Process of Refund Payment of the Year-end Tax Settlement Deduction for Educational Expenses of a Child Studying Overseas Category of Remuneration from Lecturing Taxation of Foreign Workers Departing Korea Before the End of Employment Contract Term Employee Who Worked for Two Different Companies in the Same Calendar Year 93 Chapter 3 Global Income Tax Return of Foreigners Who and How to File Global Income Tax Returns Tax Liability of Foreign English Teacher 99 ReferenceIncome Tax Calculation Chart for Resident ESL Teachers Due Date and Jurisdiction Income Tax Liability when leaving Korea Global Income Tax Return for Persons with Wage and Salary Income and Other Types of Income Income from Foreign Sources Foreign Tax Credit Documents to Attach to Income Tax Return Penalty on Failure to File Returns & Non-payment or Underpayment of Tax Income Tax Refund Income Tax Rate Tax on Retirement Income Taxation on Profits from Stock Option Exercise Attribution Date of Profits from Stock Option Excercise Profits from Stock Options & Taxpayer Association Credits Eligibility for Personal Deduction 133 Chapter 4 Tax Incentives for Foreigners Special Tax Incentives for Foreign Workers Exemption for Teacher (Professor) Qualification for Exemption for Teacher (Professor) 141

8 47. () 제 5 장국내원천소득원천징수 제 6 장사업자등록 민원증명 기타 ( : )

9 47. Q&A for American Teachers' Tax Exemption Income Tax Exemption for Foreign Engineer VAT Refund for Foreign Tourists VAT Refund for Foreign Business Operators Exemption for English Teacher at Private Educational Institution 161 Chapter 5 Tax Withholding for Korean Source Income Treaty-Reduced Tax Rates and Their Application Tax Withholding on a US Resident's Performance of Independent Personal Service in Korea English Teacher at Summer Camp Withholding Tax Rate for Interest Income Tax Withholding from Dividends Tax Withholding from an Athlete's Transfer Fee Treaty-Reduced Tax Rates and Their Application 177 Chapter 6 Business Registration Tax-related Certificates Other Tax Issues Taxpayers Liable to VAT Hometax : Internet Taxpayer Service Application for Business Registration Business Registration(e.g., Restaurants) Creation & Use of Business-Purpose Bank Account Certificate of Income Certificate of Residence Business type, Authentification of certificates in English Revised return and Request for correction 201

10 제 2 편서식 제1장연말정산 종합소득세신고 () ( ) ( ) ( - ) 278 제2장민원서류 (10) (2) ()(2) (, ) (, ) (, ) 302

11 Part 2 Tax Forms Chapter 1 Year-end Tax Settlement Global Income Tax Return Form 24-1 (Receipt for Wage & Salary Income Tax Withholding) Form 37 (Report of Exemption & Deduction from Income) Form 40-1 (Final Return of Tax Base and Computation of Global Income Tax) Form 40-4 (Final Return of Tax Base and Computation of Global Income Tax - Single Income - Simplified Expense Rate) 279 Chapter 2 Tax-related Documents Application for English Certificates(10types) 286 Certificate of Business Registration 287 Certificate of Tax Payment 288 Certificate of Income 289 Certificate of Business Suspension / Close of Business(2types) 290 Tax Clearance Certificate 291 Certificate of VAT Tax Base 292 Certificate of Income of a VAT-Exempt Business Entity 293 Certificate of Standard Financial Statements(Individual, Corporation)(2types) Application for Certification of Residence Certification of Residence Certificate for Non-resident's Tax Payment Application for Tax exemption on nonresidents' Korean source income provided under the Korea tax treaty(interest, Dividend, Royalties, Other) Application for Tax exemption on nonresidents' Korean source income provided under the Korea tax treaty(gains from Transfer of Securities) Application for Tax exemption on nonresidents' Korean source income provided under the Korea tax treaty(wage and Salaries) 303

12 제 3 편참고자료

13 Part 3 Appendix 1. Tax Offices in Major Cities Taxpayers Association Treaties with Foreign Countries Taxpayers Services for Foreign Taxpayers 317

14 제 1 편 외국인상담사례 제1장거주자와비거주자의구분제2장외국인의연말정산제3장외국인의종합소득세신고제4장외국인에대한과세특례제도제5장국내원천소득원천징수제6장사업자등록 민원증명 기타

15 Part 1 FAQ's and NTS Answers Chapter 1 Classification between Resident and Non-resident for Tax Purposes Chapter 2 Year-end Tax Settlement of Foreigners Chapter 3 Global Income Tax Return of Foreigners Chapter 4 Tax Incentives for Foreigners Chapter 5 Tax Withholding for Korean Source Income Chapter 6 Business Registration Tax-related Certificates Other Tax Issues

16 제 1 편외국인상담사례 제 1 장 거주자와비거주자의구분

17 Part 1 FAQ's and NTS Answers CHAPTER 1 Classification between Resident and Non-resident for Tax Purposes

18 1 거주자여부판정 가족이모두미국에거주하고있는미국영주권자가 1 년계약으로 E-2 비자를발급받아한국에어학강사로취업한경우한국의거주자에해당하는지요?., 1.,,., 1 ( : ). 관련법규 소득세법제 1 조의 2 [ 정의 ] 소득세법시행령제 2 조 [ 주소와거소의판정 ]

19 1 Determining Resident Status I am a permanent resident in the United States, currently working under a 1-year employment contract as an ESL teacher in Korea under E-2 visa. All my family members are living in the United States. Am I considered a resident in Korea? Determining the resident status is not based on his/her nationality or permanent residency. An individual who does not fall under the definition of resident is deemed a non-resident of Korea. The domicile shall be determined by looking at the overall objective facts of the individual s residential ties in Korea, including the presence of assets, family members supported by the resident, and his/her occupation. The place of residence differs from one s domicile in that place of residence is where an individual resides continuously for a lengthy period of time without forming the strong residential ties. If a person whose family member in US has a job which requires at least a year of continual residing in Korea (e.g. ESL teacher), the person is deemed a Korean resident from the day of the work. Related Laws Article 1-2 of Income Tax Act [Definition] Article 2 of Enforcement Decree of the Income Tax Act [Determining Domicile and Place of Residence]

20 2 거주자와비거주자의납세의무 미국영주권을취득한교포가한국에서사업을하려고하는경우한국에서발 생한소득에대하여만세금을납부하면되는지요?,. ( ),.,., , 관련법규 소득세법제 1 조의 2 [ 정의 ] 소득세법제 3 조 [ 과세소득의범위 ]

21 2 Tax Liability of Resident and Non-resident I am an overseas Korean wishing to start a business in Korea. As a lawful permanent resident of the US, what will my Korean tax liabilities be? Will my liabilities be limited to the income derived from sources within Korea? The Korean Income Tax Act classifies an individual as either a resident or non-resident for tax purposes mainly because the scope and method of taxation differ depending on one s resident status. A resident in Korea is subject to income tax on all income derived from sources both within and outside Korea ( worldwide income ). On the other hand, a non-resident is liable to income tax only on the income derived from sources within Korea. Accordingly, as an overseas Korean running a business in Korea, if you are classified as a resident in Korea, you will be liable to pay income tax on sources from within and outside Korea. If you are deemed a non-resident of Korea, you are liable to pay income tax on sources only from within Korea. Taxation on foreign-source income which is accrued on or after Jan 1st, 2009 of foreign residents who reside in Korea for short time is abated. In other words, a foreign source income of a resident whose total residence period in Korea stood at 5 years or less over the past 10 years before the end date of the attributable taxable year is taxed in Korea only when it is paid in Korea or remitted to Korea. Please refer to Question 34 for more information on Foreign Tax Credits. Related Laws Article 1-2 of Income Tax Act [Definition] Article 3 of Income Tax Act [Scope of Taxable Income]

22 3 비거주자에대한과세방법 ( 종합과세와분리과세 ) 비거주자의국내원천소득에대해원천징수만으로모든납세의무가종결되는지 요? (1 ) (2, 3 ). * :,..,.,.( )

23 3 Taxation of Non-residents (Global Taxation and Separate Taxation) I am a non-resident for Korean tax purposes. Will my tax liabilities be finalized by the taxes withheld from my Korean-source income? A non-resident is taxed on his/her income derived from sources within Korea pursuant to one of the following two methods of taxation: 1) Global taxation, whereby tax is imposed on the sum of all Korean-source income ( global income, refer to Table 1), or; 2) Separate taxation, whereby taxes are imposed separately on an income by income basis ( separate income, refer to Table 2 & 3). * What is global income? Under the Korean tax law, global income is the sum of all items of income a Korean resident had earned in a given tax year, with the exclusion of capital gains and retirement income. In general, a non-resident is subject to global taxation when he/she has a place of business or has income from real estate located in Korea. Where otherwise, a non-resident is subject to separate taxation. However, even if you have a place of business in Korea, you would still be taxed separately for each tax item unless your Korean-source income is effectively connected with or attributable to the Korean place of business. Tax liabilities on global income are finalized by filing an income tax return and paying taxes, and tax liabilities on separate income are finalized by tax withholding.(see next page)

24 ,, ( 4 ) 5.. 관련법규 소득세법제121조 [ 비거주자에대한과세방법 ] 소득세법제122조 [ 비거주자종합과세시과세표준과세액의계산 ] 소득세법제156조 [ 비거주자국내원천소득에대한원천징수특례 ]

25 However, if a non-resident has wage and salary income, he/she is subject to the withholding tax and year-end tax settlement. If the income is exempted from the withholding tax (refer to the Case 4 Wage and Salary Income), then the non-resident is subject to final tax return on his/her global income tax in May of the following year. In all cases, retirement income and capital gains are taxed with a different classification in the same manner as would apply to residents, irrespective of an existence of a business place in Korea or income from real estate. Related Laws Article 121 of Income Tax Act [Method of Taxation on Non-resident] Article 122 of Income Tax Act [Calculation of Tax Base and Tax Amount in Case of Global Taxation on Non-resident] Article 156 of Income Tax Act [Special Case of Collection through Withholding of Tax on Income Accruing from Domestic Source of Non-resident]

26 소득세과세체계 금융소득 이자소득배당소득사업소득근로소득연금소득기타소득퇴직소득양도소득 종합소득 소득공제 과세표준 산출세액 세율 (6~33%) 기납부세액 가산세 세액감면 공제 납부 ( 환급 ) 세액,,,,, 6~35%. 10%.

27 Individual Income Taxation of Korea Financial Income Interest Income Dividend Income Business Income Wage&Salary Income Pension Income Other Income Retirement Income Capital Gains Global Income Return Income Deduction Tax Base Tax Rate (6~35%) Tax Calculated Tax Prepaid Penalty Tax Reduction/Tax credit Tax payable (refundable) The Korean individual income tax system uses the unitary concept where incomes from all sources are aggregated and taxed at progressive rates (6~35%). Deductions and tax credits are allowed under certain conditions such as number of dependent familiy members. etc.. Inhabitant tax of 10% is added to the income tax in computing the total tax liability. Penalties may be assessed for failure of return-filing and tax payment.

28 비거주자국내원천소득과세체계 국내원천소득 국내세법상과세여부 no yes 조세조약상과세여부 no 과세불가 yes 과세가능소득 국내사업장유무 no yes 국내사업장귀속여부 no 분리과세원천징수 yes 종합과세 신고납부 국내세법상의세율적용 no 국내세율 > 제한세율 yes 제한세율적용

29 Taxation on Domestic Source Income of a Non-resident Domestic Source Income Taxable under Domestic Tax Laws? no yes Taxable under Tax Treaty? no N on-taxable yes Taxable income PE existence? no yes Attributable to PE? no Separate taxatioin, withholding Global Taxation filing and payment Domestic tax rate no Domestic tax rate > Limited tax rate yes Limited tax rate PE : Permanent Establishment(place of business)

30 비거주자국내원천소득에대한과세방법 국내원천소득국내사업장이없는경우국내사업장이있는경우소득세법제119조과세방법원천징수세율 (%) 1). 2),,,. 3).( : 1564() )

31 Taxation on Korean-source Income of a Non-resident Korean-source Income Article 119 of Income Tax Act Presence of PE in Korea Taxation Method No PE in Korea Withholding tax rate(%) 1) A non-resident who has income from real estate located in Korea is taxed in the same manner as a non-resident having a business place in Korea 2) For daily workers' wage, interest income, dividend income, and other income subject to separate taxation, a non-resident is liable for separate taxation and withholding taxes in the same manner as a resident's even if he/she has PE or real estate income. 3) If a withholding rate specified in the Income Tax Act is higher than that of the limited tax rate of a tax treaty, then the latter shall prevail. * Exceptional case: when withholding under the provision of the Article of the Income Tax Act

32 제 1 편외국인상담사례 제 2 장 외국인의연말정산

33 Part 1 FAQ's and NTS Answers CHAPTER 2 Year-end Tax Settlement of Foreigners

34 ( - ) -, -, : 20 : 1 : : 10 ( - ) ( - ) 500 : 80% 500 1,500 : % 1,500 3,000 : ,500 15% 3,000 4,500 : 1, ,000 10% 4,500 8,000 : 1, ,500 5% 8,000 1 : 1, ,000 3% 1 : 1, % :, : 1 200, , , : 50, : : 2 100, ( - ) ( - ) : (, ), - (, 100 ) - ( 100 ) : - ( 3%) -, 65,, - 7 : : 1 900

35 Overview of Year-end Tax Settlement for Wage & Salary Income Total Income from Employments ( - ) Non-taxable Income Gross Earnings Compensation of Actual Expenses - wages that are received by a worker due to natural disasters and other calamities, pays for business travel, etc. - compensation for driving one's own car, research subsidies for qualifying teachers, reporting allowances for reporters : limit is 200,000 per month Salary derived from overseas : limit is 1,000,000 per month Allowance for Night Duty received by manufacturing employees : limit is 2,400,000 per annum Meal costs of less than 100,000 per month, etc. Allowances for childbirth or upbringing of 6-year old children or under : limit is 100,000 per month ( - ) D eductio n for W age & S alary Inco m e Amount of Gross Earnings up to 5,000,000 : 5,000,000~15,000,000 : 15,000,000~30,000,000 : 30,000,000~45,000,000 : 45,000,000~80,000,000 : 80,000,000~100,000,000 : 100,000,000~ : Adjusted Wage & Salary Income Deduction Amount 80% of the amount 4,000, % of the amount exceeding 5,000,000 9,000, % of the amount exceeding 15,000,000 11,250, % of the amount exceeding 30,000,000 12,750, % of the amount exceeding 45,000,000 14,500, % of the amount exceeding 80,000,000 15,100, % of the amount exceeding 100,000,000 ( - ) Personal Deduction Basic Deduction : Taxpayer himself, Spouse and dependents with adjusted wage & salary income of less than 1,000,000 1,500,000 per capita per annum Additional Deduction: The Handicapped 2,000,000 per capita, the aged (70 or older) => 1,000,000 per capita per annum, child under 6 years old 1,000,000 per capita, Qualifying Female Taxpayer 500,000, New-born or Newly Adopted : 2,000,000 per capita Additional deduction for households with multiple children : With two eligible children 1,000,000 plus 2,000,000 per child after the first two children ( - ) Pension Premium Deduction ( - ) Special Deduction Insurance Premium : National Health Insurance, Employment Insurance Total amount, - Qualified Insurance(ex. automobile insurance) up to 1,000,000 - Insurance for the handicapped up to 1,000,000 Medical Expenses : Deductible Amount Medical Expenses-(Gross Wage & Salary Income 3%) - Taxpayer himself, the aged(65 years old or more) and the handicapped : No limit - Dependents: up to 7,000,000 Education Expenses: Taxpayer himself Total amount - Kindergarten, elementary, secondary, high school up to 3,000,000 per capita - University or College up to 9,000,000 per capita

36 : 300(+), 1,000(++) 40% 40% ( 1,000) 30 1,500 : ( - ) : ( 300 ) - ( 300 ) : 15%( 50% ) : 10%( 50% ) = + = 25% [ (++) (+++) ] 20% = 25% [ (+++) ] 25%,,, = 20% 300 : 400 ( ) (6 33%) 1,200 : 6% 1,200 ~ 4,600 : ,200 15% 4,600 ~ 8,800 : ,600 24% 8,800 : 1, ,800 33% ( - ), : : 55% - 50 : % : 10% : 30% : /110 : = ( / ) ( - )

37 Expenses for Housing : limit is 3,000,000(+), 10,000,000(++) Qualified savings for home purchase : 40% of deposit Qualified debt repayment on home rental loans : 40% of principal repaid Qualified interest payment on home mortgage loans : full amount (up to 10,000,000) up to 15,000,000 in case of home mortgage loans for 30 years or longer Qualified Donation Standard Deduction : if the total amount of Special Deduction is less than 1,000,000 annual standard deduction : 1,000,000 ( - ) Other Deduction Pension Savings Deduction : deposit amount (limit is 3,000,000 per annum) Retirement Pension Deduction - up to 3,000,000 per annum(including pension saving deduction amount) Investment Association Deduction - Investment on or after Jan. 1, 2004 : 15% of investment amount(limit is 50% of Income) - Investment on or after Jan. 1, 2007 : 10% of investment amount(limit is 50% of Income) Credit Card Usage Deduction = + = Excess amout of 25% of grss wage & salary income [ (++) (+++) ] 20% = Excess amout of 25% of grss wage & salary income [ (+++) ] 25% Credit cards usage, Cash receipt, Giro payment, Debit catds, etc usage Employee Stock Ownership Association Contribution Deduction deduction amount is the lesser of contribution amount or 4,000,000 Tax Base (Taxable Income) ( ) Tax Rate (6 33%) Up to 12,000,000 : 6% 12,000,000~46,000,000 : 720, % of the excess of 12,000,000 46,000,000~88,000,000 : 5,820, % of the excess of 46,000,000 Over 88,000,000 : 15,900, % of the excess of 88,000,000 Calculated Income Tax ( - ) Tax Credit and Exemption Tax Credit for Wage & Salary Income : limit is 500,000 - up to 500,000 : 55% of calculated income tax, over 500,000 : 275, % of over 500,000 Taxpayer Association Credit(TAC) : 10% of calculated income tax Qualified Home Mortgage Interest : 30% of interest paid Donation for political fund : credit granted by 100/110 (if the AMT is less than 100,000) Foreign Tax Credit : foreign income tax amount paid or payable in a foreign country Credit = calculated income tax (foreign source income / gross income) Final Tax Liability ( - ) Pre-paid Tax Payable/Refundable Tax

38 4 근로소득의정의 근로소득이란무엇인가요? ,. - ( ) - ( )., 관련법규 소득세법제 20 조제 1 항 [ 근로소득 ] 소득세법제 127 조 [ 원천징수의무 ]

39 4 Definition of Wage and Salary Income How is Wage and Salary Income defined in a tax context? An employee s wage and salary income refers to all types of payments received for personal services rendered as an employee in Korea. Any person who pays any of the followings to a resident or non-resident in Korea shall collect the income tax at source from such resident or non-resident. - wage, salary, remuneration, allowance, bonus, and any other allowance of a similar nature received in return for services - bonus income received through the resolution passed by the general meeting of the stockholders, partners or a similar deliberative organ of the corporation. - amount treated as bonus under the Corporation Tax Law - income, other than retirement income, received due to retirement However, the followings shall be excluded from withholding. - wages and salaries received from a foreign organization or the United Nations Forces(excluding the United States Armed Forces) stationed in Korea - wages and salaries received from a nonresident or foreign corporation located overseas (excluding its branch or business office in Korea) *In calculating the domestic source income amount accruing from (1) any place of business in Korea of a non-resident as prescribed in Article and of the Income Tax Act and (2) any place of business in Korea of a foreign corporation as prescribed in Article 94-1 and 94-2 of the Corporate Tax Act, the amount which is appropriated as necessary expenses or losses shall be excluded. Related Laws Article 20(1) of Income Tax Act [Wage and Salary Income] Article 127 of Income Tax Act [Liability for withholding]

40 5 근로소득자와연말정산 외국인근로자입니다. 매달회사에서원천징수를하고있는데, 이것으로소득세납세의무가끝나는건가요? 또, 연말정산은무엇인가요?. 2 2.( ) ().. 관련법규 소득세법제127조 [ 원천징수의무 ] 소득세법제137조 [ 근로소득세액의연말정산 ] 소득세법제143조 [ 근로소득에대한원천징수영수증의교부 ]

41 5 Wage&Salary income earners and Year-end Tax Settlement My income taxes are withheld from my monthly pay. Does this settle and finalize my Korean income tax liabilities? What is the year-end tax settlement? At each month that you are paid, your employer must withhold and pay income taxes at an amount as shown on the Simplified Tax Withholding Table ( DeskQuick Viewer ServiceMy withhholding income tax calculator) at the district tax office. The year-end tax settlement should be completed by the withholding agent by the time of your salary for February is paid. Once the year-end tax settlement is completed, the withholding agent should issue a "Receipt for Wage and Salary Income Tax Withholding" by the end of February. If you retire during the year, the year-end tax settlement should be finalized in the month that you receive your final payment while the withholding agent should issue the Receipt for Wage and Salary Income Tax Withholding in the following month of the month in which you retire. When a greater amount was withheld than what you owe (which is your final tax liability ), your employer ( withholding agent ) must refund the difference to you. Conversely, if it turns out that a lesser amount had been withheld, then additional withholding will be made to cover the difference. This whole process is "the year-end tax settlement". Please check with your employer about your tax payable/refund. Related Laws Article 127 of Income Tax Act [Liability for Withholding] Article 137 of Income Tax Act [Year-end Tax Settlement of a Tax Amount on Wage and Salary Income] Article 143 of Income Tax Act [Delivery of Receipt for Wage and Salary Income Tax Withholding ]

42 6 근로소득자의소득세신고방법 연말정산을하지못했는데소득세신고를어떻게해야하나요?.,,, 관련법규 소득세법제 73 조 [ 과세표준확정신고의예외 ]

43 6 Income Tax Filing of Wage & Salary Income earners I have missed the year-end tax settlement. How can I file my income tax return? If your income source is only from salary, you do not need to file your income tax return for your withholding agent does so. However, if you missed the year-end tax settlement, provided that your income source is only from salary, or if you missed income deduction, special deduction, or summing up of your income from two different companies in the same calendar year, then you can finalize your income tax in May of the following year by submitting documentary evidence to the competent district tax office. Related Laws Article 73 of Income Tax Act [Exception to Final Return on tax base]

44 7 근로소득자와 4 대보험 4 대보험이란말을들었는데, 근로자가직접가입하는건가요? 사업장에서가입해 주는건가요? 학원강사도보험가입대상인가요? 4. 4 (2012 ) 9.0% 4.5% 4.5% 1, 5.8% 2.9% 2.9% 1 80 () ( ) 6.55% 3.275% 3.275% 1.35%~ 0.55% % 0.25~0.85% 0.55% 1 60 ( ) -,.. : ( , 1355) : ( ) () : (1350) () : ( ) 4 (4 ) :

45 7 Wage & Salary Income Earners and Four Social Insurance Programs Should an employee himself/herself get four Social Insurance Programs or should the employer have employees insured? Is a teacher at a private educational institution also subject to the insurance programs? If you are deemed an employee by the employment contract, your employer is obliged to have you insured for Four Social Insurance Programs. Summary of Four Social Insurance Programs(Tax Year 2012) Program National Pension Health Insurance Long-term Care Insurance (Newly introduced in July 2008) Employment Insurance Industrial Accident Insurance Imposition unit Business/ individual Business Definition of Income Earned income excluding non-taxable income Total payroll amount inclusing non-taxable income Premium Rate Premium burden in case of workplace-based insurance Employer Employee 9.0% 4.5% 4.5% 5.8% 2.9% 2.9% Health insurance amount 6.55% 1.35%~ 1.95% Health insurance amount 3.275% Health insurance amount 3.275% Exception Daily workers whose working period is less than a month and workers working less than 80 hours per month 0.55% ~0.85% 0.55% Workers working less than 60 hours per week To be determined for each business type - Your income tax as well as these insurance premium above are deducted from your salary. For your information on the programs, please contact the followings; National Pension Service : Tel: , 1355 National Health Insurance Corporation : Tel: Int. 7 Ministry of Labor Call Center(Employment Insurance) : Tel: 1350 Korea Workers' Compensation & Welfare Service(Industrial Accident Insurance) : Tel: Social Insurance Information System(Four Social Insurance Programs) :

46 8 조기출국또는이중근로하는외국인근로자의연말정산 영어교사로 1 년고용계약을맺고한국에서 4 개월째살고있는외국인입니다. 입국한지 1 년이경과하기전에출국하거나연도중직장을옮기는경우연말정산은어떻게하는지요? (),..,.. 관련법규 소득세법제137조 [ 근로소득세액의연말정산 ] 소득세법제138조 [ 재취직자에대한근로소득세액의연말정산 ] 소득세법시행령제197조 [ 재취직자에대한근로소득세액의연말정산 ]

47 8 Employees who depart Korea permanently or move to another job in the same year I ve been working here as an ESL teacher for 4 months under a one-year employment contract. However, for personal reasons, I ll be departing Korea way before the end of my one-year contract period. In this case, do I still need to make tax adjustments through year-end tax settlement? In your situation, your employer ( withholding agent ) is required to make adjustments to your tax withholding through year-end tax settlement in the month that you receive your final payment. Also when shifting jobs in the middle of the tax year, Receipt for Wage and Salary Income Tax Withholding. must be delivered to you by your employer ( withholding agent ) until the last day of the month following the month that your last paycheck is issued. If you have wage and salary income only, your income tax liability will be settled through the year-end settlement by your withholding agent. However, if you obtained a new employment after retiring during the same year, you must submit a Receipt for Wage and Salary Income Tax Withholding and a copy of Record of Taxpayer s Wage and Salary Income Tax Withholding of your previous employment to the withholding agent of the new workplace. Then, your current withholding agent, in order to conduct the year-end tax settlement, must combine the wage and salary income from the former workplace with the current one. If not, you may be liable for penalty tax for double application of tax deduction. Related Laws Article 137 of Income Tax Act [Year-end Tax Settlement of a Tax Amount on Wage and Salary Income] Article 138 of Income Tax Act [Year-end Tax Settlement of a Tax Amount on Wage and Salary Income] Article 197 of Enforcement Decree of the Income Tax Act [Year-end Tax Settlement of a Tax Amount on Wage and Salary Income of Reemployed Person]

48 9 근로소득세계산절차 외국인근로자입니다. 근로소득에대한세금을계산하는절차를설명해주세요..,. 1. ( p 34 ).,,,...( )

49 9 Calculating Taxes on Income from Employment I am a foreign worker. How do I calculate my income taxes on wages and salaries? Wage and salary income is taxed the same way for both residents and non-residents, the only difference being in the availability of certain deductions and credits. Tax calculation starts by figuring your total income from employment, which is the sum of your gross earnings and non-taxable income for a given tax year. First, subtract non-taxable income from your total income from employment to derive your gross earnings. Then, subtract the amount available for deduction for wage and salary income, to derive the adjusted wage and salary income. (For more information on deduction for wage and salary income, refer to Overview of Year-end Tax Settlement for Wage and Salary Income in page 35.) Your tax base (or taxable income) is your adjusted wage and salary income less personal deductions, pension premium deduction, special deductions, and other deductions. Please note that if you are a non-resident worker, only the following deductions will be available to you: 1) Basic and additional deductions for the non-resident taxpayer him/herself, under personal deductions 2) Pension premium deduction Then take your tax base and multiply it by the applicable tax rate to compute your calculated income tax. From there, take off the amount allowable for wage and salary income tax credit and the amount of the personal income tax that has been withheld from you. The remaining amount is the taxes payable.(see next page)

50 .( 44 ) - 15%() 관련법규 소득세법제47조 [ 근로소득공제 ] 소득세법제122조 [ 비거주자종합과세시과세표준과세액의계산 ] 조세특례제한법제18조의 2 [ 외국인근로자에대한과세특례 ]

51 Foreign workers can also benefit from special tax incentives on their wage and salary income by filing an application to qualify for a 15% flat rate at the time of year-end tax settlement or global tax return filing. - Separate taxation on wage and salary income by multiplying such income by a 15% flat rate. Applicable to wage and salary income received before and until Dec (For more information on Special Tax Incentives for Foreign Workers, please refer to Question 44) Related Laws Article 47 of Income Tax Act [Deduction for Wage and Salary Income] Article 122 of Income Tax Act [Calculation of Tax Base and Tax Amount in Case of Global Taxation on Non-resident] Article 18-2 of Tax Incentive and Limitation Law [Special Cases of Taxation for Foreign Workers]

52 10 국외소득에대한납세방법 외국에있는회사에서받는월급도세금을내야하나요? 낸다면어떤방법으로 내야하나요?,.( 4 ) , 10% 관련법규 소득세법제 3 조 [ 과세소득의범위 ] 소득세법제 150 조 [ 납세조합의징수의무 ]

53 10 Taxation on Foreign-source Income Am I liable to tax on the wage I receive from my company outside of Korea? If so, what are my tax liabilities? Wages and salaries received from a foreign person or foreign corporation outside Korea are exempt from monthly withholding (Refer to Question 4 for details). If you fall under this category, you are required to fulfill your own tax obligations since the payer of your income is outside Korea. In this case, you are required to declare this income annually and pay the taxes thereon by May 31 of the year following the tax year. Alternatively, you may join a taxpayer s association which will withhold and pay your income taxes on a monthly basis to the appropriate tax authorities by the 10th day of the following month. Members of a taxpayers association are allowed a 10% tax credit. Refer to the Taxpayers Association in Appendix 3 for the contact number of your taxpayers association. Related Laws Article 3 of Income Tax Act [Scope of Taxable Income] Article 150 of Income Tax Act [Liability of Tax Association for Collection of Taxes]

54 11 매월급여상공제액 한국에온지 1 년이넘었습니다. 학원에서영어를가르치며월 2 백만원을벌고있는데매달 7% 인 14 만원을원천징수합니다. 제가알기로는매월 2%3% 정도원천징수되는것으로알고있는데정확히어떻게된건지알고싶습니다., () 3.3%( ) 5.,, () ,000,000( 1 ) ( ) 19,330.,. ( Desk->Quick Viewer Service->My withholding Income Tax Calculator),. 7. 관련법규 소득세법제129조 [ 원천징수세율 ] 소득세법제134조 [ 근로소득에대한원천징수의방법 ] 소득세법제144조 [ 사업소득에대한원천징수의방법과원천징수영수증의교부 ]

55 11 Taxes Withheld Monthly from Salary by Employer I've been in Korea for over a year. I earn 2,000,000 a month teaching English at a hakwon and am being withheld at a rate of 7%, or 140,000, from my pay each month. My understanding is that only 2-3% should be withheld from my pay. Please provide some clarification. If you teach English as an independent contractor and are not under any employment agreement with the income payer("hakwon"), then the compensation you receive for teaching is classified as business income. In this case, hakwon is required to withhold an amount equivalent to 3.3%(resident tax included) of your monthly pay from you each month, and you must make a final declaration of your income tax in May of the following year. If you have an employment contract with the hakwon, then your compensation is categorized under Wage and salary income, for which your employer (hakwon) is subject to the liability of monthly withholding at an amount based on the Simplified Tax Table. As of November 2012, the amount subject to income tax (residence surtax included) withholding on 2,000,000 in salary (1 Deductible persons including taxpayer) is 19,330. You may check this through NTS English website ( Help Desk Quick Viewer Service My withholding Income Tax Calculator) Please keep in mind premiums for National Pension and Social Insurance are also deducted from your monthly salary. Please refer to case 7 regarding National Pension and Social Insurance Premium Deduction. Related Laws Article 129 of Income Tax Act Withholding Tax Rates Article 134 of Income Tax Act [Method of Withholding on Income] Article 144 of Income Tax Act Withholding of Business Income and Delivery of Receipt for Wage and Salary Income Tax Withholding

56 12 근로소득과세상거주자와비거주자의차이 한국법인에서 3 개월째근무중인외국인근로자입니다. 최근에회사에서연말정산시세금공제를위한신청서를작성하라고합니다. 혹시외국인근로소득에대해차별적인것이있습니까?,,...( 2, 3 )., ( : ),, ( : ). 관련법규 소득세법제 121 조 [ 비거주자에대한과세방법 ] 소득세법제 122 조 [ 비거주자종합과세의과세표준과세액의계산 ]

57 12 Difference in Tax Treatment of Wages & Salaries Between Resident and Non-resident I ve been working with a Korean company for three months. Recently, the company has asked me to fill out an application for tax allowances for the year-end tax settlement. I d like to find out if there are any differences in the tax treatment of a foreign worker s income. A resident is liable to income tax on items of income derived from sources both within and outside Korea. On the other hand, a non-resident is liable to income tax only on items of income derived from sources within Korea. A non-resident is subject to either global taxation or separate taxation, depending on the existence of a domestic place of business. A non-resident without a domestic place of business will be taxed separately. (Please refer to the Table 2 and 3 for more details on the specific method of taxation.) Most of the provisions concerning the tax base and tax amount of residents shall also apply to a non-resident who has earned wage and salary income in Korea. However, deductions non-residents can apply for are only limited to basic deduction and additional deduction for the non-resident himself/herself (ex. If the non-resident is handicapped, he/she can apply for deduction for the handicapped.), and pension premium deduction. Special deductions and other deductions such as deductions for credit card usage are not applicable to non-residents. Related Laws Article 121 of Income Tax Act [Method of Taxation on Non-resident] Article 122 of Income Tax Act [Calculation of Tax Base and Tax Amount in Case of Global Taxation on Non-resident]

58 13 인적공제 회사에다니고있는외국인근로자입니다. 외국에계시는부모님도부양가족공 제를받을수있나요?. () - 1,500, ,000,000 2,000, ,000 1,000,000 2,000,000 Tax base&deduction 1,000,000 ~ ( ),.. 20, 20, ,.( )

59 13 Personal Deductions I am a foreigner working for a Korean company. My parents live back home in my home country. Can I receive tax allowance for my parents who live outside Korea? For residents, they are eligible for personal deductions as specified below. Classification Amount(won) Qualification Taxpayer - Basic Regardless of Spouse 1,500,000 Income amount of Deduction cohabitation one mil. or less Dependents Cohabitation Personal The aged 1,000,000 Refer to Tax base&deduction in The handicapped 2,000,000 Deduction Additional Qualified Female the NTS Eng. website Deduction Taxpayer 500,000 ResourcesPublicationIndivid linear descendant 1,000,000 ual Income Tax and Benefit newbornadoptee 2,000,000 Multiple children 1,000,000~ Guide for Foreigners 2010" A foreign non-resident who has a spouse or linear descendants with foreign nationality living in Korea can get a certificate of foreign registration once he/she submits an agreement of dependent family members to the Immigration Office. If his/her spouse has a Korean nationality, the spouse can submit a certificate of marriage issued by a city/district office as a documentary evidence. If the foreign non-resident has the spouse living in his/her home country, he/she can also apply for deduction for the spouse only with a documentary evidence which shows the relation and the spouse's income. Deduction for dependents includes persons supported by the taxpayer and whose annual income does not exceed 1,000,000. Such dependant may be one of the following: a lineal descendent or a brother/sister who is not older than 20 years of age; or 60 and older lineal ascendant. - In principle, family member should live together, but you can still get deduction for linear descendants and adoptees regardless of cohabitation. (See next page)

60 -,. -,,.. 관련법규 소득세법제50조 [ 기본공제 ] 소득세법제51조 [ 추가공제 ] 소득세법제51조의 2 [ 다자녀추가공제등 ] 소득세법제53조 [ 생계를같이하는부양가족의범위와그판정시기 ]

61 - Deduction for linear descendants can be applicable regardless of cohabitation if the taxpayer can prove that he/she supports the linear descendants with documentary evidences such as a proof of the family relation and remittance records of living expenses. - A person who has temporarily left the taxpayer s domicile or residence for reasons of schooling, medical treatment, work, or business may still be entitled to this deduction. The determination of eligibility shall be made based on the existing conditions at the closing date of the tax period concerned. Related Laws Article 50 of Income Tax Act [Basic Deduction] Article 51 of Income Tax Act [Additional Deduction] Article 51-2 of Income Tax Act [Additional Deduction for Persons with Many Children, etc] Article 53 of Income Tax Act [Scope of Dependents Living Together and Time of Determination Thereof]

62 14 교육비공제 혼자한국에들어와회사에서일하고있고, 가족들은전부본국에있습니다. 초등학생인아들을위하여국외의사설교육기관에지출한비용도교육비공제가가능한자요?.,,,....

63 14 Deductions for Education Expenses I'm in Korea for work and the rest of my family live in my home country. Is it possible for me to get a deduction for the fees I pay for my elementary school son's private education back home? Deductibility differs depending on your resident status. If you are a non-resident employee, special deductions, such as deductions for education expenses, are not available to you. If you are a resident employee, you are entitled to the benefits of special deductions within certain limitations. Deductible education expenses, paid to kindergartens, schools and other qualifying educational institutions within Korea, include school entrance fees, tuition, and child care fees for eligible persons for basic deduction. However, deduction will not apply for the graduate school expenses paid for the spouse or dependants. In addition, there is a deduction for education expenses paid to an educational institution outside Korea that is equivalent to a kindergarten or school in Korea which you can take for dependents engaged in certain qualifying overseas studies. In your case, education expense deduction will not be available since your son s education fees were paid to a private educational institution outside Korea.

64 < >.. 1) : ( ) 2) : 1 3 3) : 1 3 4) : 1 9 관련법규 소득세법제 52 조 [ 특별공제 ]

65 <Tax Tips> For eligible persons, they will need to submit supporting documents to their withholding agent in order to receive this deduction. There is a limited amount as to how much of such education expenses can be deducted per year. Limitation for deductible education expenses: ) Employee himself(herself) : No limitation - Tuition for graduate school and course fee for vocational training facilities are also included in the deductible educational expenses. ) Kindergarten : 3,000,000 per capita ) Elementary School, Middle & High School : 3,000,000 per capita ) University & College : 9,000,000 per capita Related Laws Article 52 of Income Tax Act [Special Deduction]

66 15 기부금공제 외국의자선단체에지급한기부금도공제가되나요?.. ( )..,.( -3633, ) ( ) ( ) -

67 15 Deductions for Charitable Donations Can I get a deduction for the donations I made to charitable organizations located in another country? If you are a non-resident, you are not entitled to receive a deduction for charitable donations. If you are a resident, you are entitled to a deduction for the amount donated to a charitable organization registered with the state/local government or a charitable organization meeting the requirements stipulated in relevant Korean laws. To receive the deduction, you will need to attach the original donation receipt issued by the charitable organization (copies are not accepted as valid) to the Statement of Charitable Donations and submit the documents to your withholding agent. Charitable organizations located outside Korea do not meet the deductibility requirements under the Korean law. Therefore, in your specific situation, a deduction is not available for the donation you have made. However, when you donate relief goods to victims of natural disasters outside Korea and receive donation receipts from a foreign relief organization, the donated amount is deductible from the income calculation. (Corp.-3633, Nov. 26, 2008) The following outlines the types of charitable donations that are deductible under the Korean law and specific limitations on each type of charitable donations. Statutory donation - Value of money and goods donated to government agencies and local governmental bodies without compensation - Contributions for national defense and war relief - Value of money and goods donated for the relief of victims of calamities - Consideration for the voluntary support served in a special disaster area under their Framework Act on the Management of Disasters and Safety - Donations to social welfare facilities under the Social Welfare Services Act(Donations made on or before June 30, 2011)

68 - ( ) 10 ( ) 기부금종류 1 정치자금기부금 ( 조특법제76조 ) 2 법정기부금 ( 소법제34조제2항 ) 3 특례기부금 ( 조특법제73조 ) 까지지출분 4우리사주조합기부금 ( 조특법제88조의4 제13항 ) 5지정기부금 ( 소법제34조제1항 ) ( 종교단체에기부한금액이있는경우 ) 6지정기부금 ( 소법제34조제1항 ) ( 종교단체에기부한금액이없는경우 ) 공제한도 근로소득금액 100% ( 근로소득금액 - 1-2) 50% ( 근로소득금액 ) 50% [ 근로소득금액 ] 10% + [( 근로소득금액 ) 의 20% 와종교단체외에지급한금액중적은금액 ] ( 근로소득금액 ) 10%

69 - Donations to organizations that support needy neighbors under Article 79-2 (2) of the Enforcement Decree of Income Tax Act (Donations made on or before June 30, 2011) - Donations made to statutory donation organizations Political fund donation - Donations to political parties (including political support groups and the National Election Commission under the Political Funds Act), under the Political Funds Act, in excess of 100, ,000 Special donation(limited to amount on donation paid until June, ) - Donations to special donation organizations Donation to the employee stock ownership association - Donations contributed to the employee stock ownership association by a person, who is not a member of the association. Designated donation - Donations to the designated donation organization Deduction limits of each charitable contrivutions are as follows. Type Deduction limit 1 Political fund donation 2 Statutory donation 3 Special donation * Applicable to donations paid on or before June 30, Donations to the employee stock ownership association 3 Designated donation * In case of donation to religious organization included 6 Designated donation * Without donation to religious organization Adjusted wage&salary income 100% (Adjusted wage&salary income - 1-2) 50% (Adjusted wage&salary income ) 50% [Adjusted wage&salary income ] 10% +Min [(Adjusted wage&salary income ) 의 20%, Amount of donation to religious organization] (Adjusted wage&salary income ) 10% 관련법규 Article 34 of Income Tax Act [Non-deductibility of Contribution as Necessary Expenses] Article 52 of Income Tax Act [Special Deduction]

70 16 현금영수증홈페이지회원가입 현금영수증사용금액소득공제를받을수있는휴대폰번호를등록하고싶습니 다. 절차가어떻게되나요?, ( ) (,, ). ( ) 1... (). 1~2...

71 16 Registering for Cash Receipt System How do I register my mobile phone number to receive the tax deduction on cash purchases? In order to receive income deduction for cash receipt-issued spendings, you must first create a member account and enter usage number(s)(cash receipt card number, cellphone number or credit card number) at the Cash Receipt website ( available in Korean language only). If a foreigner (including overseas residents) has filed or made a tax payment to the NTS, or the NTS has issued the foreigner with any certificate, then he/she can instantly make a member account. However, if you encounter a message saying, That is not a valid number. Please check and try again, it means that your foreign registration number is not registered in our taxpayer management system. When that happens, you can register as a taxpayer and obtain a cash receipt card at a tax office that has jurisdiction over your domicile by presenting your foreign registration card to the person in charge of Cash Receipts. You can create a member account at the Cash Receipt website one or two days after taxpayer registration. Then enter your Cash Receipt card number, cellphone number, or credit card number under Change Card and Phone Number to begin collecting Cash Receipts under your account. Once you are registered in the cash receipt system, your purchases with the cash receipt card or numbers you have entered are automatically accumulated in the system. Later, when you conduct the year-end tax settlement, you can apply for deductions for credit cards, etc. usage just by entering the amount which is reviewed as the "Usage Amount in the Year" in the system.

72 17 현금영수증사용금액소득공제 물건을살때신용카드나현금영수증을사용하면소득공제가된다고들었습니 다. 얼마나공제받을수있는지요?. a.,,, b., ),,, : [{ ( 25%)} (a/) 20%] + [{ ( 25%)} (b/) 25%] % Q. Steve. Steve 3, , 200? 50. * { (3,000 25%)} 1,000/1,000 20% = ( 20% 300 ) 50. 관련법규 조세특례제한법제 126 조의 2 [ 신용카드등사용금액에대한소득공제 ]

73 17 Deductions for Cash Receipt Usage I understand that I can get an income deduction for credit card usage and Cash Receipt issuance. How much of a deduction am I allowed? If you are a resident earning wages and salaries, you can receive a deduction for the amount of purchases made using a credit card or through Cash Receipt issuance. At the time of year-end tax settlement or global income reporting, you can claim a deduction at an amount that is calculated as outlined in below, up to a maximum of the amount as described in : Computing your deductible income: Sum of the expenditures by a.credit cards, Tuition through Giro, Cash receipt issuance, b.prepaid cards, Debit cards for the year Expenditure not considered as one used by credit cards under tax laws eg) Insurance Premium payable, Tuition fee, National & local taxes payable, etc. Deductible amount : [{ (gross earnings 25%)} (a/) 20%] + [{ (gross earnings 25%)} (b/) 25%] Maximum deductible amount for a given tax year: The lesser of 3,000,000 or an amount equivalent to 20% of gross earnings Example Q. Steve is a resident and a native teacher of English. His gross earnings are 30,000,000 with 8,000,000 in credit card purchases and 2,000,000 in Cash Receipt issuance for the current tax year. What is his deductibility from credit card and Cash Receipt usage? A. Steve can receive a deduction of 500,000. * {8,000, ,000,000 (30,000,000 25%)} 10,000,000/10,000,000 20% = 500,000 All of 500,000 is fully deductible, as the amount is within the maximum amount available for deduction for Steve, who is allowed a full deduction of up to 3,000,000 (which is the lesser of 20% of gross earnings or 3,000,000). Related Laws Article of Tax Incentive and Limitation Law [Income Deduction for Amounts Drawn on Credit Cards, etc.]

74 18 주택임차료 ( 월세 ) 현금영수증소득공제 서울에거주하는외국인인데요, 제가살고있는집의집세를공제받을수있 다고들었습니다. 어떻게해야공제를받을수있나요? (). ().., 1. 관련법규 조세특례제한법제 126 조의 2 [ 신용카드등사용금액에대한소득공제 ] 조세특례제한법시행령제 121 조의 2 [ 신용카드등사용금액에대한소득공제 ]

75 18 Deductions for Rent through Cash Receipt Issuance I'm a foreigner living in Seoul. I heard that I can apply for deduction for my rent. How can I get the deduction? Starting Feb. 2009, if a resident worker, who earns wage and salary income, reports a tenancy contract to the NTS, he or she can get deduction for the (monthly) rent that he or she paid to the house owner, who is not registered as Cash Receipt issuance store, and had Cash Receipt issued. You have to submit copies of tenancy contract and "Application for Confirmation of Cash Transaction" through the NTS website (Hometax) or to the competent district tax office over your address to get the deduction. To avoid the inconvenience of monthly reporting, the NTS electronically manages the contract period of tenancy contract and rent payment date and issues the Cash Receipt based on the rent payment date during the contract period. Deductions for rent are only applied for the rent payments made within one month after the report. Related Laws Article of Restriction of Special Taxation Act [Income Deduction for Amounts Spent by Credit Cards, etc.] Article of Enforcement Decree of the Restriction of Special Taxation Act [Income Deduction for Amount Spent by Credit Cards, etc.]

76 19 연말정산간소화서비스 연말정산시공제를받기위해 2011 년도분지출내역을알고싶습니다. 쉽게자료를구할수있는방법이있나요? ( ).,,. (, ). (, ),.,., ( 1).

77 19 Simplified Year-end Tax Settlement I need to obtain a record of my 2011 expenditures for year-end tax settlement deduction purposes. Is there an easy way to get this? Yes, there is a simple way of obtaining that information. Simplified Year-end Tax Settlement( in Korea only) is your one-stop channel for collecting the receipts you need for claiming your income deduction. Simplified Year-end Tax Settlement is an internet-based service that shows the allowable amount of deduction that you can take for yourself and your dependents. A print-out of the screen displaying such records is used as a valid supporting document that you can submit to your withholding agent. You would need to register your dependents at the website first in order to view their deductibility records (such as their medical and insurance fees). Simplified Year-end Tax Settlement will save you the time and trouble of going to each issuer of receipts (such as banks and hospitals) to obtain the necessary documents. To obtain above records for deductions, you need to get a Public Internet Certificate for the purpose of private information protection. The Public internet certificate for internet banking or stock transaction is issued at banks, post offices, or stock firms. You can also get a Public Internet Certificate for Hometax from any district tax office (only once).

78 20 외화급여에대한환율적용 지난해초부터한국에서근무하고있습니다. 월급을미국본사로부터매월 20 일달러로받는데소득세신고시환율은어떻게적용해야하나요?. 1) : 2) : 관련법규 소득세법제 20 조 [ 근로소득 ] 소득세법통칙 [ 외화로지급받은급여의원화환산기준 ]

79 20 Currency Conversion of Wage & Salary Paid in Foreign Currency I have been working in Korea since the beginning of last year. I receive my wage and salary in dollars from the US head office on the 20th of every month. How do I apply currency exchange rate when filing income tax? If you receive wage and salary in US dollars, convert the US dollar into KRW as follows: 1) If you are paid wage and salary before the agreed date of payment, you should apply the standard exchange rate of the actual payment date. 2) If you are paid wage and salary on or after the agreed date of payment, you should apply the standard exchange rate of the agreed date of payment. Related Laws Article 20 of Income Tax Act [Wage and Salary Income] Basic Ruling of Income Tax Act [Currency Conversion of Wage and Salary Paid in Foreign Currency]

80 21 연말정산결과확인 연말정산결과를알고싶습니다. 어떻게해야하나요?. 1) (). 2.,. 2) 3 10, 5.,.

81 21 Finding of the Outcome of the Year-end Tax Settlement How do I find the outcome of the year-end tax settlement? You can check the outcome of the year-end tax settlement as follows; 1) You can ask for a receipt for wage and salary income tax withholding from your withholding agent. The withholding agent should present a receipt for wage and salary income tax withholding by the end of February of the following year. The receipt contains information on the final tax liability including details of your income and taxes. 2) If the withholding agent submits the statement on wage and salary income payment to the NTS by the 10th day of March next year, you can check the statement on wage and salary income payment via the Hometax service starting from following May.

82 22 종합소득세신고의무여부 저는올해 8 월부터직장에들어가서급여를받고있는데요, TV 뉴스프로그램에서업무를봐주고번소득이있습니다. 연말정산과는별도로다음연도에종합소득신고를해야하나요? 1... TV (, 80% ) 2 5.

83 22 The Responsibility Whether to File an Income Tax Return or Not I have been an employee in a company and earned salary income since August this year, and, happened to earn some performance fee from a TV broadcasting company. In this case, do I have to file the final tax return next year in addition to the year-end tax settlement of the end of this year? You may be treated as a resident (taxpayer) when you have an occupation which requires you to reside in Korea one year or more. Then, you are supposed to file an income tax return for your worldwide income including your Korean source income. Therefore, when you do not have any foreign-source income, you only have to file a return on you Korean source income. If you had Wage and Salary Income only, your income tax liability would be settled through the year-end tax settlement. However, in your case, as you had an occupational income (Other income) from a television broadcasting company (80% of the amount will be deducted as necessary expenses when calculating taxable income) as well as Sage and Salary Income, you are subject to file income tax return for the two kinds of income by the end of May next year to the district tax office concerned.

84 23 연말정산환급금지급절차 연도중에퇴사한자로연말정산환급금을돌려받으려고합니다. 그런데회사에서는계속해서환급금을돌려주는것을미루고있습니다. 회사대신세무서에서환급금을받을수는없나요?. 세무서 ( 환급신청 ) ( 환급금지급 ) 원천징수 의무자 ( 추가납부 ) ( 환급 ) 근로자.,, ( 1350).

85 23 The Process of Refund Payment of the Year-end Tax Settlement I retired from work during the attributable taxation period and claimed for a refund through year-end tax settlement. However, my company keeps delaying the payment of the refund. Can I get the refund from a district tax office instead of through the company? The refund occurred as a result of the year-end tax settlement for wage and salary income workers is to be paid by the withholding agent you have worked for. District Tax Office (Claim for a refund) (Refund) Withholding Agent (Additional Payment) (Refund) Wage&Salary Income Workers If a refund occurs as a result of the year-end tax settlement and the withholding agent keeps delaying the payment of the refund, then the worker has the right to claim for a refund from the withholding agent. That is, the worker can claim for the refund in the same way as claiming overdue wage. Regarding wage and salary, retirement pay, and dismissal, you can contact worker's call center at the Ministry of Labor( 1350).

86 24 본국에있는자녀의교육비공제 한국에서근무하는외국인이본국에있는자녀의교육비 ( 국외기관교육비 ) 에대해교육비공제를받을수있나요?

87 24 Deduction for Educational Expenses of a Child Studying Overseas(e.g., home country) Can a foreigner employed in Korea get deductions for educational expenses incurred by a child studying overseas(e.g., home country)? No. Only those educational expenses that meet both the "student" and "overseas educational institute" requirement are deductible. requirement The overseas educational institute has to be a "school" as interpreted under the Pre-school and Elementary/Middle/High School Law or Higher Education Law of the Youth Education Law of Korea. And the student has to be an international student studying at the invitation or admission by an oversea educational institute or research center, as prescribed by Article 5 or Article 15 of the "Regulations on Oversea Studies".

88 25 강의료의소득구분 강의를하고지급받은대가는어떤종류의소득에속하나요?...

89 25 Category of Remuneration from Lecturing Which category does remuneration for giving lectures fall into among wage &salary income, other income, and business income? Is there an employment contract, then the remuneration is categorized as a wage & salary income. Remuneration form the lecture in a temporary period is categorized as other income. If the employment status of the lecturer is independent contractor(free-lancer) and the lecture is given repeatedly and continuously, then the remuneration is categorized as a business income.

90 26 계약기간만료전에조기출국하는외국인의근로소득과세 영어강사로 1 년고용계약을맺고한국에서 4 개월째살고있는외국인입니다. 그러나사정에의해입국한지 1 년이경과하기전에출국하는경우근로소득에대해연말정산을해야하는지요? (). 관련법규 소득세법제 137 조 [ 근로소득세액의연말정산 ]

91 26 Taxation of Foreign Workers Departing Korea Before the End of Employment Contract Term I have been working here as an ESL teacher for 4 months under a one-year employment contract. However, for personal reasons, I'll be departing Korea way before the end of my one-year contract period. In this case, do I still need to make tax adjustments through year-end tax settlement? In your situation, your employer ("withholding agent") is required to make adjustments to your tax withholding through year-end tax settlement in the month that you receive your final payment. Also, when shifting jobs in the middle of the tax year, "Receipt for Wage and Salary Income Tax Withholding" must be delivered to you by your employer ("withholding agent") until the last day of the month following the month tat your last paycheck is issued. 관련법규 소득세법제 137 조 [ 근로소득세액의연말정산 ]

92 27 이중근로소득자의연말정산 예전과현재의직장에서근로소득이있습니다. 이번연말정산시에예전직장에대해서도연말정산을해야하나요?. 관련법규 소득세법제 138 조 [ 재취직자에대한근로소득세액의연말정산 ] 소득세법시행령제 197 조 [ 재취직자에대한근로소득세액의연말정산 ]

93 27 Employee Who Worked for Two Different Companies in the Same Calendar Year I have wage and salary income from both current and previous employment. Do I need to report the income from the previous employer when filing my year-end tax settlement? If you had retired in the middle of the current tax year and obtained a new employment during the same year, you must submit a Receipt for Wage and Salary Income Tax Withholding and a copy of Record of Taxpayer s Wage and Salary Income Tax Withholding of your previous employment to the withholding agent of the new workplace. Then, your current withholding agent, in order to conduct the year-end tax settlement, must combine the wage and salary income from the former workplace with the current one. Related Laws Article 20 of Income Tax Act [Wage and Salary Income] Basic Ruling of Income Tax Act [Currency Conversion of Wage and Salary Paid in Foreign Currency]

94 제 1 편외국인상담사례 제 3 장 외국인의종합소득세신고

95 Part 1 FAQ's and NTS Answers CHAPTER 3 Global Income Tax Return of Foreigners

96 28 종합소득세신고대상및신고방법 종합소득세신고대상자는누구이며, 어떻게신고하나요?,.,,,,. 4,000, 관련법규 소득세법제14조 [ 과세표준의계산 ] 소득세법제73조 [ 과세표준확정신고의예외 ] 소득세법제122조 [ 비거주자종합과세시과세표준과세액의계산 ]

97 28 Who and How to File Global Income Tax Returns I'd like to know whether and how to file a global income tax return. Under Global Taxation, different types of income as outlined in the Income Tax Act are aggregated and taxed progressively. Under Separate Taxation, each item of income is taxed separately. A resident is taxed on the aggregate of his/her interest income, dividend income, business income, wage and salary income, pension income, and other income. However, if the sum of the interest and dividend income for the tax year is 40,000,000 or less than 40,000,000 or if the sum of other income for the year is 3,000,000 or less than 3,000,000 that income is taxed separately. A non-resident is taxed on the aggregate of his/her Korean source income if he/she has a domestic place of business or real estate income; and taxed separately on each item of income if he/she does not have a domestic place of business or real estate income. Residents having income subject to global taxation and non-residents earning Korean-source income attributable to a Korean business place are required to file global income tax returns by the final day of May of the year following the current taxable year. However, residents and non-residents whose earnings are only from their wage and salary income subject to withholding have their Korean tax liabilities finalized through year-end tax settlement completed by their withholding agents, and therefore are not required to file global income tax returns. Related Laws Article 14 of Income Tax Act [Calculation of Tax Base] Article 73 of Income Tax Act [Exception to Final Return on tax base] Article 122 of Income Tax Act [Calculation of Tax Base and Tax Amount in Case of Global Taxation on Non-resident]

98 29 외국인영어강사의납세의무 한국에서영어강사로일하고있는외국인입니다. 사설교육기관 ( 학원 ) 에서는매달급여지급시총지급액의 5% 정도를세금명목으로제하고있는데, 이러한방식이타당한것인지요?. ( ). 4 ( 7 ) 3.3%. 1). - () 3.3%( 0.3% ). 5, ( )

99 29 Tax Liability of Foreign English Teacher I am currently working as an ESL teacher in a language institute (hakwon) in Korea. My employer deducts 5% from my monthly salary for tax purposes. Is such taxation correct? Taxation of income tax for foreign ESL teachers differs based on their employment status. Employment status is determined by the specific conditions of the contract between you and your employer, and it is broken into two types: employee and independent contractor ( free-lancer ). If you are deemed an employee, your employer is obliged to have you insured for Four Social Insurance Programs (Refer to the case 7). Most of foreign teachers are independent contractor whose income is withheld every month at 3.3%. 1) If you are a resident, you are taxed as follows: - If you are an independent contractor (free-lancer), the payer must withhold taxes every month at a rate of 3.3% (0.3% resident surtax included). In this case, you are responsible for filing global income tax return in the month of May of the following year, and any amount of tax withheld will be credited to you as prepaid tax. You may be able to claim a tax refund on your global tax return if the prepaid tax amount is greater than your final tax liabilities. - If you are an employee, your employer must withhold the monthly income tax calculated by using the Simplified Tax Withholding Table. Your income tax liability for the year is settled and finalized in February of the following year through the year-end tax settlement completed by your employer.(see next page)

100 2) %( 2% ). -, ( ). : ( ) 관련법규 소득세법제 122 조 [ 비거주자종합과세시과세표준과세액의계산 ] 소득세법제 137 조 [ 근로소득세액의연말정산 ]

101 2) If you are a non-resident, you are taxed as follows: - If you are an employee, you are taxed following the same method applied to resident employees. - If you provide lecture or teaching services without an employment agreement, the withholding rate shall be 22% (2% resident tax included). - However, income from independent personal services and dependent personal services (wages and salaries) may not be taxable in Korea when it meets certain non-taxation requirements, such as the 183 day-term test provided under tax treaties. Chart for Resident ESL Teachers(Please refer to the Income Tax Calculation(See next page) Related Laws Article 122 of Income Tax Act [Calculation of Tax Base and Tax Amount in Case of Global Taxation on Non-resident] Article 137 of Income Tax Act [Year-end Tax Settlement of a Tax Amount on Wage and Salary Income]

102 () 3.3% x 2 () 5 > <

103 Monthly withholding tax When Withholding agent Employee At the time of payment Employer Independent contractor (Freelancer) At the time of payment Payer Tax Rate Simplified tax withholding table 3.3% Prepaid Tax sum of monthly withholding taxes Final Return Return method When Filer Total tax liabilities Employee year-end tax settlement February of the following year employer Tax base tax rate Independent contractor (Freelancer) global income tax return May of the following year yourself Tax base tax rate Prepaid Tax > Total tax liabilities Prepaid Tax < Total tax liabilities Tax Refund Additional Payment

104 30 신고기한과납세지 한국에서근무한지 15 개월이되었습니다. 소득세신고를해야한다고하는데 언제까지어디로신고를해야하나요? , ( 36 ). 14.., (ARS), (ATM). 관련법규 소득세법제5조 [ 과세기간 ] 소득세법제6조 [ 납세지 ] 소득세법제70조 [ 종합소득과세표준확정신고 ] 출입국관리법제36조 [ 체류지변경의신고 ]

105 30 Due Date and Jurisdiction I have been working in Korea for 15 months. When and where do I have to file an income tax return? The tax year for global income tax is the calendar year (January 1 to December 31) and the filing period for the global income tax return begins on May 1st and ends on May 31st of the following year. If you file the return after the filing period, there shall be penalty tax (refer to the case 36) If the due date falls on a Saturday, Sunday, or a legal holiday, then the due date is delayed until the next business day. When a foreigner who has conducted a foreigner's registration changes his/her place of domicile, he/she must report the change to the city/district/gu office of the new domicile place or the immigration/immigration branch office of the new domicile place within 14 days from the move. Afterwards, you must file your return with the district tax office (DTO) that has jurisdiction over your domicile. If there is a change in your DTO during the tax return filing period due to your movement, your return will be transferred to the relevant DTO that has jurisdiction over your current domicile. You can pay your tax at any bank or post offices by May 31st. Electronic payment of taxes is also available via the Internet, phone (ARS), and ATM. Related Laws Article 5 of Income Tax Act [Taxable Period] Article 6 of Income Tax Act [Place of Tax Payment] Article 70 of Income Tax Act [Final Return on Tax Base of Global Income] Article 36 of Immigration Control Act [Report on Change Sojourn Place]

106 31 연도중출국시소득세납세의무등 한국에서 11 년간살아오면서해마다소득세신고를했습니다. 이번 8 월에일을 그만두고다른나라로가려고합니다. 이럴경우소득세신고를해야하나요? ( : ). 1 1., ( : , , 2011 ).,.. 관련법규 소득세법제 74 조 [ 신고기한의특례 ]

107 31 Income Tax Liability when leaving Korea I ve filed my income tax returns for the past 11 years I have lived in Korea. In August, I ll be quitting my job and leaving Korea. Do I need to file income taxes for this year? When relocating domicile or place of residence to outside of Korea, residents subject to filing a tax return must declare their taxable income and taxes due for the taxable period that includes the departure date, by the day before departure. Taxable period for personal income is between January 1 and the date of retirement. When departing Korea between the period of January 1 and May 31 to relocate domicile or place of residence to outside of Korea, residents must also file a tax return for the taxable period immediately preceding the period under which his/her departure date falls, by the day before departure. (ex. If entered on Feb. 1, 2010 and departed on Jan. 31, 2011, you must declare your taxable income attributable to 2010 and 2011 by Jan. 30, 2011.) The taxpayer himself/herself should file his/her global income tax return with the district tax office which has jurisdiction over your domicile. Since the global income tax is diversified and the calculation is complicated, it is difficult for foreigners to file the global income tax return himself/herself. If that is the case, you can get help by visiting the Individual Income tax division of the competent district tax office or consult with a tax agent. When you visit the district tax office, please bring your alien registration card and the receipt for business income tax withholding. Related Laws Article 74 of Income Tax Act [Special Case of Final Return on Tax Base]

108 32 근로소득및다른소득이있는경우종합소득세신고 금년 8 월부터회사에취직해서급여를받고있고, 방송출연으로인한소득도 발생하고있습니다. 내년에도이회사에계속근무할계획입니다. 이럴경우연 말정산외에별도의소득세신고를해야하나요? 1..,. ( : ) %, 20%., ) 2) 관련법규 소득세법제14조 [ 과세표준의계산 ] 소득세법제21조 [ 기타소득 ] 소득세법제70조 [ 종합소득과세표준확정신고 ]

109 32 Global Income Tax Return for Persons with Wage and Salary Income and Other Types of Income I have been earning salary at a company since August of this year, and am currently earning some performance fees from a TV broadcasting company as well. In this case, do I have to file a final tax return next year, in addition to the year-end tax settlement? You may be treated as a resident when you have an occupation which requires you to reside in Korea one year or more. A resident is required to file an income tax return for the worldwide income. If you have wage and salary income only, your income tax liability will be settled through the year-end settlement by your withholding agent. If you have income other than wage and salary income (for example, other income ), you are subject to filing global income tax return for both incomes at the appropriate district tax office by the end of May next year. The television performance fees you received as an independent contractor (meaning there were no employment agreement between you and the TV broadcasting company) are classified as other income. For a resident s other income, 80% of the amount is deducted as necessary expenses and the remaining 20% is adjusted other income. However, if the sum of your adjusted other income for the year is 3,000,000 or less, you may choose from one of the following two methods: 1) Consolidating your other income into your global income and filing a global income tax return thereon 2) Instead of filing income tax return, finalizing your tax liabilities through withholding by the payer at the time of payment of other income Related Laws Article 14 of Income Tax Act [Calculation of Tax Base] Article 21 of Income Tax Act [Other Income] Article 70 of Income Tax Act [Final Return on Taxable Income of Global Income]

110 33 거주자의국외원천소득합산신고 본국에서발생한소득도신고해야하나요?,.( 2 ),.,..(1 2, 3 ) 관련법규 소득세법제3조 [ 과세소득의범위 ] 소득세법제57조 [ 외국납부세액공제 ] 소득세법시행령제117조 [ 외국납부세액공제 ]

111 33 Income from Foreign Sources Do I have to report income earned in my home country? If you are a resident in Korea, you are required to report your income from all sources, both within and outside Korea.(Refer to the case 2) In general, a resident's foreign source income is included in his/her global income. If you have paid or are liable to pay foreign income tax abroad, the tax amount paid or payable aborad will be credited against your Korean tax liabilities to prevent double taxation. In this case, you may either (1) take a foreign tax credit or (2) treat the amount as necessary expenses. You can get credits for taxes paid abroad on global income other than business income by the "foreign tax credit" method. If you are a non-resident in Korea, you are required to report your income from Korean-source income only.(please refer to the table 2 and 3 of Appendix 1) Related Laws Article 3 of Income Tax Act [Scope of Taxable Income] Article 57 of Income Tax Act [Tax Credit for Payments in Foreign Country] Article 117 of Enforcement Decree of the Income Tax Act [Foreign Tax Credit]

112 34 외국납부세액공제 본국에서발생한소득에대하여이미본국에서세금을납부하였는데, 그세금 을공제받을수있나요? (1) (2)., (2). (1) : - : (2) : 5. 관련법규 소득세법제 57 조 [ 외국납부세액공제 ] 소득세법시행령제 117 조 [ 외국납부세액공제 ]

113 34 Foreign Tax Credit Is there any credit for tax paid in foreign countries? As a resident, you are allowed a foreign tax credit if the foreign source income is consolidated in your global income or retirement income, and if you have paid or are liable to pay in a foreign country taxes equivalent to Korea's income tax on such income. Where this is the case, a credit for the foreign taxes paid is given by using one of the following two methods of your choice: (1) Crediting of Foreign Taxes, or (2) Treatment as Necessary Expenses. However, the method(2) is applicable to business income only. 1) Under Method (1) of above : - This is the method of crediting foreign taxes against the global income amount or retirement income amount for the current year. Maximum credit allowable is the amount equivalent to multiplying calculated income tax amount by foreign-source income s percentage of global income or retirement income for the current year. 2) Under Method (2) of above : - Treatment of foreign taxes as necessary expenses : This is the method of including the amount of foreign income taxes paid or payable on foreign-source income in the necessary expenses for purposes of computing the current year's taxable income. If the foreign tax amount paid or payable exceeds the allowable limit, the excess portion may be carried over for 5 years. Related Laws Article 57 of Income Tax Act [Tax Credit for Payments in Foreign Country] Article 117 of Enforcement Decree of the Income Tax Act [Foreign Tax Credits]

114 35 소득세신고서첨부서류 소득세를신고할때어떠한서류를첨부해야하나요?,, ( ) - 관련법규 소득세법제 70 조 [ 종합소득과세표준확정신고 ] 소득세법시행령제 130 조 [ 종합소득과세표준확정신고 ]

115 35 Documents to Attach to Income Tax Return What are the documents I need to attach to my income tax return? Return forms and instructions for filing contain a list of the documents that need to be attached to the forms (such as supporting documents, forms, itemized lists, receipts). If you fail to submit the proper application forms required by law to claim various credits and deductions, you may be unable to receive those credits and deductions. For those documents not required for submission, you are generally required to keep them for a period of 5 years. The following lists the documents that need to be attached to your income tax return : - Supporting documents establishing a person s eligibility for personal deduction and special deduction - Documents required in calculating the amount of revenue and necessary expenses - (Where you have business income) Balance sheet, Income statement, and Compound trial balance, and their attached documents; and Adjusted account statement; and - Other documents as requested by the responsible tax authorities as provided by the law Related Laws Article 70 of Income Tax Act [Final Return on Tax Base of Global Income] Article 130 of Enforcement Decree of the Income Tax Act [Final Return on Tax Base of Global Income]

116 36 신고 납부불성실가산세 기한내에소득세신고를하지못하게되면어떤불이익이있나요?. :. 1) :. - ( - ) 20% % ( ) 2) : ( - ) 10% 3) () :. - () 40% % ( )

117 36 Penalty on Failure to File Returns & Non-payment or Underpayment of Tax What are the disadvantages for not filing on time? The penalty for both failure-to-return and failure-to-pay is assessed if an income tax return or payment is not accomplished by the due date. Penalty on Failure to File Returns and Under-reporting of tax : If you fail to file your tax return or under-report your tax amount, the following penalties will be imposed on you : 1) Penalty on failure to file returns : Take the greater of the following two amounts and either add to your taxes due or deduct from the refundable amount. - 20% of (calculated income tax amount - withheld tax) % of revenue (applicable only to persons required for doublebookkeeping) 2) Penalty on under-reporting of tax : 10% of (calculated income tax amount rate of under-reported amount - withheld tax) 3) Penalty on willful failure to file returns or willful under-reporting of tax : Take the greater of the following two amounts and either add to your taxes due or deduct from the refundable amount. - 40% of calculated income tax amount rate of unfair non-filing or under-report % of revenue (applicable only to taxpayers required for doublebookkeeping)

118 : % 관련법규 국세기본법제47조의 2 [ 무신고가산세 ] 국세기본법제47조의 3 [ 과소신고가산세 ] 국세기본법제47조의 5 [ 납부 환급불성실가산세 ]

119 Penalty on Non-payment or Underpayment of Tax : When the income tax payable is not paid properly (not paid by the due date or under-payment), a penalty is added to the payable tax amount or subtracted from the refundable amount. Penalty is calculated by using the following formula: - Unpaid or under-paid amount number of days counted from the day after the due date to the date of actual payment or notification of assessment 0.03% Related Laws Article 47-2 of Basic Law for National Taxes [Penalty on Failure to File] Article 47-3 of Basic Law for National Taxes [Penalty on Under-reporting of Tax] Article 47-5 of Basic Law for National Taxes [Penalty on Non/Underpayment of Tax and Over-claiming of Refunds]

120 37 소득세환급금 작년에이미낸세금이내야할세금보다많아환급금이발생하게되었습니다. 이번에소득세신고하면언제쯤환급금을받을수있을까요? 5. (,, 2 HSBC ). 7 1(), 8 20 (). ( :, ).,.. 관련법규 소득세법제 85 조 [ 징수와환급 ]

121 37 Income Tax Refund I need to claim a refund for the taxes I paid last year because it was more than the amount payable. If I file my income tax return this year, when can I expect to receive a refund? You will receive a refund if you have paid more than the amount payable, as will be shown when you prepare your tax return in May. If you are entitled to a refund, you need to enter your bank account number (except one in non-monetary institutions or foreign banks) in the Report of the Bank Account section of the tax base final tax return. Generally, refunds are made around July 1 (for National Tax) or August 20 (for Local Tax). When a resident (ex. a private institution teacher as a business income earner, one having wage & salary income and business income in the attributable tax year) subject to the final return for tax base leaves Korea permanently, if he/she files his/her tax return one day before the departure, the refund will be transferred to his/her account after the departure. If you get an access to the Internet Banking from your bank, you can transfer the refund amount to your foreign bank account once the refund is made. Please visit the competent district tax office for the inquiry regarding the approximate time of the refund. Related Laws Article 85 of Income Tax Act [Collection and Refund]

122 38 소득세율 한국의소득세율은어떻게되나요?. (2012 ) 과세표준세율 1,200 만원이하 6% 1,200 만원초과 4,600 만원이하 72 만원 + 1,200 만원초과금액의 15% 4,600 만원초과 8,800 만원이하 582 만원 + 4,600 만원초과금액의 24% 8,800 만원초과 1,590 만원 + 8,800 만원초과금액의 33% 관련법규 소득세법제 55 조 [ 세율 ]

123 38 Income Tax Rate Could you explain the income tax rates in Korea? The amount of income tax on global income is calculated by applying the following tax rates to the respective tax base(taxable income). (Years attributable to 2012) Tax Base Tax Rates 12 million or less 6% Over 12 million to 46 million or less 720, % of the excess of 12,000,000 Over 46 million to 88 million or less 5,820, % of the excess of 46,000,000 Over 88 million 15,900, % of the excess of 88,000,000 Related Laws Article 55 of Income Tax Act [Tax Rates]

124 39 퇴직소득에대한과세 외국인도퇴직소득세를납부해야하나요? 세율은어떻게되나요?, ( 38 ) = ( ) - 1 = ( 14 7, 22 3, 48, 55 2, 146 1). 관련법규 소득세법제14조 [ 과세표준의계산 ] 소득세법제55조 [ 세율 ] 소득세법제146조 [ 퇴직소득에대한원천징수의방법과원천징수영수증의교부 ]

125 39 Tax on Retirement Income As a foreigner, am I taxed on my retirement income? If so, what is the tax rate? Both residents and non-residents are liable to Korean taxes on their retirement income. Non-residents are taxed in the same manner as residents on their retirement income. Retirement income is a payment that an employee of a resident/non-resident or corporation receives at retirement that occurs through the termination of his/ her continued provision of employment. Retirement income is not consolidated into the recipient s global income, but taxed separately. The person paying retirement income in Korea to a resident or non-resident must withhold retirement income tax at the time of payment. The withholding amount shall be calculated by using the formula below. Tax rates for retirement income are the same as the global income tax rate. (Please refer to Question 38 for more information on income tax rates.) Tax base of retirement income = Total income from retirement (not including non-taxable income) - deduction for retirement income Calculated tax amount on retirement income 1 = Tax base of retirement income basic tax rate Yrs of service Yrs of service (Article 14 (7), Article 22 (3), Article 48, Article 55 (2), Article 146 (1) of the Income Tax Act) The withholding agent paying out retirement income must issue a Receipt of Withholding from Retirement Income to the recipient by the final day of the month following the month of the retirement income payment. Related Laws Article 14 of Income Tax Act [Calculation of Tax Base] Article 55 of Income Tax Act [Tax Rates] Article 146 of Income Tax Act [Method of Collection of Tax on Retirement Income through Withholding and Delivery of Withholding Receipt]

126 40 스톡옵션의과세 외국인투자회사에서근무하고있습니다. 3 년전외국모회사에서받은스톡옵션을행사하여 2007 년에소득이발생했습니다. 이소득도신고해야하나요?.,, ( ). 관련법규 소득세법제 20 조 [ 근로소득 ] 소득세법시행령제 38 조 [ 근로소득의범위 ]

127 40 Taxation on Profits from Stock Option Exercise I work for a foreign invested company. In 2007, I have made profits by exercising stock options that were granted by a foreign parent company three years ago. Should I declare the profits? If an employee of a domestic subsidiary is granted stock options by a foreign parent company and exercises them, the profits are regarded as compensation for the employee's service. Therefore, you must declare the profits as Salary and Wage Income. The Korean Supreme Court ruled as follows on the scope of wage and salary income: Wage and salary income includes the following, irrespective of how and under which name it is paid: - Overall economic profits arising from compensation received in return for provision of employment services, and; - Payments derived based on the assumption of employment services, having close connection to and satisfying the conditions thereof. Related Laws Article 20 of Income Tax Act [Wage and Salary Income] Article 38 of Enforcement Decree of the Income Tax Act [Scope of Wage and Salary Income]

128 41 스톡옵션행사이익의귀속시기 해외모기업에근무중스톡옵션을부여받은국내자회사임원이국내근무기간중스톡옵션을행사한경우스톡옵션행사이익은어떻게과세되는지요? 그리고조세특례제한법상과세특례규정을적용받을수있는지요?.,., ( ),.(2-887, ) 관련법규 소득세법시행령제 49 조 근로소득의수입시기 국세청법인 ,

129 41 Attribution Date of Profits from Stock Option Exercise I am an executive at a Korean subsidiary. How am I taxed for the stock options I ve exercised here in Korea on those options I received from the Korean subsidiary's parent company back when I was in my home country? Can I apply the tax benefits provided by the Tax Incentive and Limitation Law? A stock option is a right to buy the company's stock for a stated price ( strike price ) for a specified period of time. No income is recognized at the time the option is granted. Income is generated when you exercise your options and gain a profit from the difference in the strike price and market price. When you exercise your options, the entire amount of the profits from the exercise is taxed as wage and salary income, and is attributable to the year of the exercise of your options.(refer to Letter Team 2-887, May 8, 2008) Related Laws Article 49 of Enforcement Decree of the Income Tax Act [Receipt Date of Earned Income] NTS-issued Administrative Ruling ,

130 42 스톡옵션소득과납세조합공제여부 해외모기업으로부터부여받은스톡옵션을행사함으로인하여발생한이익에대 해납세조합에가입하여원천징수하면납세조합세액공제가가능한지요?..(1-161, ) ( 10%). 관련법규 소득세법제 150 조 [ 납세조합의징수의무 ]

131 42 Profits from Stock Options & Taxpayer Association Credits Is it possible to receive taxpayer association credits for the profit I've earned from exercising the stock options granted by the foreign parent of my company in Korea, if I join the Class B taxpayers' association? If you have joined a taxpayer association, reported the wage and salary income exempted from withholding to the taxpayer association, and your income tax in the attributable tax year is being withheld by the taxpayer association, then you can receive taxpayer association credits even for non-monthly income of the attributable tax year. If an employee working in a foreign invested company earns income by exercising stock options granted by the foreign parent company, the income is categorized as earned income exempted from withholding in the attributable year. (Refer to Letter Team 1-161, January 31, 2008) Therefore, when an employee who joined a taxpayer association earned income by exercising stock options, he/she can receive taxpayer association credits (10% of calculated tax amount). Related Laws Article 150 of Income Tax Act [Liability of Tax Association for Collection of Taxes]

132 43 인적공제대상자의범위 인적공제대상자의범위는어떻게되나요?. (,, ), (,,, 6 ). ( ) 100.,,..., ( : )., ( : ). 관련법규 소득세법제50조 [ 기본공제 ] 소득세법제51조 [ 추가공제 ] 소득세법제51조의 2 [ 다자녀추가공제 ]

133 43 Eligibility for Personal Deduction Who are eligible for Personal Deductions for income tax purposes? If you are a resident, the eligibility for personal deduction is outlined below: Personal deductions are classified into three: Basic deduction (i.e., deduction for taxpayer, spouse, and dependents), Additional deduction (i.e., deduction for the aged, handicapped, qualifying female taxpayer, and lineal descendents aged 6 or younger) and Additional deduction for taxpayers with multiple children. Basic deduction for dependent family members must (i) be listed on the registration card of the resident actually living at his/her domicile or residence, and (ii) earn no more than 1,000,000. (Lineal descendents do not need to satisfy requirement (i).) A person who has temporarily left the taxpayer s domicile or residence for reasons of schooling, medical treatment, work, or business may still be entitled to this deduction. The determination of eligibility shall be made based on the existing conditions at the closing date of the tax period concerned. If you are a non-resident, you will be unable to take personal deductions for persons other than the resident him/herself. In other words, personal deductions will be available for yourself only. For example, you are allowed an additional deduction for the handicapped (allowable under the personal deduction category) only if you yourself are a handicapped person. As for other categories of deduction, a non-resident may receive a pension premium deduction, but cannot receive special deductions and other deductions (e.g., deduction for expenditures by credit cards). Related Laws Article 50 of Personal Income Tax Law [Basic Deduction] Article 51 of Personal Income Tax Law [Additional Deduction] Article 51-2 of Personal Income Tax Law [Additional Deduction for Persons with Many Children]

134 제 1 편외국인상담사례 제 4 장 외국인에대한과세특례제도

135 Part 1 FAQ's and NTS Answers CHAPTER 4 Tax Incentives for Foreigners

136 44 외국인근로자과세특례 외국인영어강사입니다. 외국인근로자에대한세금혜택이있다고들었는데어떤혜택이있는지알려주세요.., ( * ) % ( ).,,. 15% =, *? 3 ( ) 관련법규 조세특례제한법제 18-2 조 [ 외국인근로자에대한과세특례 ]

137 44 Special Tax Incentives for Foreign Workers What are the special tax incentives for foreign workers? As a foreign ESL teacher in Korea, am I eligible for the benefit? A foreign worker deem a resident has the same tax liability with Korean nationals' which is finalized through withholding and the year-end tax settlement. However, foreign workers (not including daily workers) earning wage and salary income for working in Korea are eligible for 15% flat tax rate application until December 31, 2012 by submitting the flat rate application form to the withholding agent or the competent district tax office at the time of the year-end tax settlement or global income tax filing, Wage & Salary Income 15% = Calculated Tax amount Foreign workers with the right of permanent residence in Korea are not eligible for 15% flat tax rate application as of January 1, * A daily worker is a person satisfying both requirements below: Any person who receives payment based upon the days or time during which his labor is provided, or by calculating the pay based upon the performance from labor in the days or time during which his labor is provided; A person who does not remain under the continued employment by the same employer for 3 months or more under an employment contract (exceptions apply to persons engaged in construction as well as stevedoring work) Related Laws Article 18-2 of Tax Incentive and Limitation Law [Special Cases of Taxation for Foreign Workers]

138 45 교사 ( 교수 ) 의근로소득세면제 한국의한대학교에근무하는미국인입니다. 현재급여에서 30 만원이소득세로원천징수되고있습니다. 현재한국에거주한지 2 년이안되었습니다. 한미조세조약및국세청의연말정산영문안내책자를자세히읽어보니원천징수가잘못된것같습니다. 제가면제대상이맞나요? 20, 2. 2.( ). ( () (, ). 관련법규 소득세법제156조의 2 [ 비거주자의국내원천소득중비과세등을적용받는경우비과세등의신청 ] 한 미조세조약제20조 [ 교직자 ]

139 Exemption for Teacher (Professor) 45 I am an American and an employee of a university in Korea. Currently, about 300,000 is withheld from my monthly paycheck for income tax. I have lived in Korea for less than two years. After careful reading of both the US-Korea tax treaty and the Easy Guide for Foreigners' Year-end Tax Settlement issued by Korea s National Tax Service, I believe I am being unfairly taxed. Please inform me if I am indeed tax exempt or not. Under Article 20 of the Korea-US tax treaty, where a resident of the US is invited by a university or other recognized educational institution in Korea for the purpose of teaching or engaging in research at a university or other recognized educational institution for a period not expected to exceed 2 years and such resident comes to Korea primarily for such purpose, his income from personal services for teaching or research at such university or educational institution is exempt from tax by Korea for a period not exceeding 2 years from the date of his arrival in Korea. (However, retirement income shall be subject to taxation.) Exemption qualification varies by treaty. Please check the tax treaty. ( Law/TreatyTax Treaty) To qualify for tax exemption under the Korea-US Tax Treaty: 1) You must be invited by the Government of Korea or other recognized educational institution. 2) The period of the invitation is not expected to exceed 2 years, and the purpose of invitation must be teaching or engaging in research, or both. If you qualify, you may request tax refund to your withholding agent (income payer) by submitting the resident certificate issued by the competent authorities of your resident country (i.e., IRS). Related Laws Article of Income Tax Act [Application for Non-Taxation, etc. on Domestic Source Incomes of Non-resident] Article 20 of Tax Treaty between Korea and US [Teachers]

140 46 교사 ( 교수 ) 의근로소득세면제요건요약 서울에있는작은사설교육기관 ( 학원 ) 에 7개월째근무하고있습니다. 한국방문직전에캐나다거주자였는데조세조약에의해소득세가면제되는지요? ()... 영어권주요국가의면세요건및세금혜택 ( ) 20 :,, : 2 : : : 2 : 2 :, : 2 : : ( )

141 46 Qualification for Exemption for Teacher(Professor) I've been working for a small private educational institution in Seoul for the past 7 months. And I was a resident in Canada before entering Korea. Am I eligible for income tax exemption? A private educational institution (hakwon) is not an institution recognized as non-profitable by the Korean government under the Korea-South Africa treaty. Therefore, you are subject to Korean tax liabilities on the remuneration you receive in return for your teaching at the hakwon. Please refer to the following table. Exemption Qualification and Tax Benefits Country Arti. Qualification(all required) Tax Benefit America 20 Canada England 20 South Africa 21 (See next page) Inviting organization : Goverment, regional public institutions, authorized educational institutions Purpose of invitation : Teaching or research in universities or other authorized educational institutions Purpose of visit : Primarily same as the purpose of invitation Period of visit: 2 years or less N/A in the tax treaty Income tax exemption for a period not exceeding 2 years from the date of arrival in Korea Purpose of invitation : Teaching or research in universities, colleges, schools or other authorized non-profit educational institutions Income tax exemption for Period of visit: 2 years or less a period not exceeding 2 Taxation: Under the provision of the tax years from the date of treaty, if exempted in Korea, then the arrival in Korea income is taxed in England. If exempted or deducted in England, then the income is taxed in Korea. Purpose of invitation : Teaching or research in universities, colleges, schools or other authorized non-profit educational institutions Period of visit: N/A Purpose of visit: Teaching or research in the inviting organization Income tax exemption for a period not exceeding 2 years from the date of arrival in Korea

142 ( ) 21 :,, : : 2 20 :,, : : 2 21 :, 2 () : 2 20 :,,,, :, : 2 :, 관련법규 소득세법제119조 [ 비거주자의국내원천소득 ] 소득세법제156조의 2 [ 비거주자의국내원천소득중비과세등을적용받는경우비과세등의신청 ]

143 Country Arti. Qualification(all required) Tax Benefit New Zealand 21 Austrailia 20 Ireland 21 Germany 20 Inviting organization : Universities, colleges, schools, or other educational institutions authorized by the competent authority Purpose of visit: Teaching or research in the inviting organization Period of visit: 2 years or less Inviting organization : Universities, colleges, schools or other authorized educational institutions Purpose of visit: Teaching or research in the inviting organization Period of visit: 2 years or less Teaching or advancement study (including research) in universities, colleges, authorized research institutions, or other institutions for higher education Period of visit: 2 years or less Inviting organization: Government, universities, colleges, schools, museums or other cultural institutions Purpose of visit : Teaching or research in inviting institutions Period of visit:2 years or less Payment condition: Getting paid outside Korea Exemption Exemption Income tax exemption for a period not exceeding 2 years from the date of arrival in Korea Exemption Before entering Korea, the taxpayer should be a resident of the country of the tax treaty and prove his/her residency by submitting a certificate of residence. Related Laws Article 119 of Income Tax Act [Domestic Source Income of Non-resident] Article of Income Tax Act [Application for Non-Taxation, etc. on Domestic Source Incomes of Non-resident]

144 47 미국인교사 ( 교수 ) 의근로소득세면제질의응답사례 한국방문직전미국거주자였습니다. 교사 ( 교수 ) 근로소득세면제에대한구체적인사례를알려주실수있나요? Q. 2 2? A. 2 2.( ) Q. 1? A.. Q.? A. () [ 292(3)] 3, ()

145 47 Q&A for American Teachers' Tax Exemption I was a resident of US before entering Korea. I would like to know more about earned income tax exemption cases. Q. If I am invited to Korea on a contract of which primary purpose of staying in Korea requires the period exceeding two years, am I eligible for tax exemption for the first two years? A. If the period of invitation exceeds two years, the earned income for the first two years is not subject to tax exemption. It is the same case for the contract cancelled during the invitation period. Q. I have worked as a teacher in a private institution, but now I am working in an authorized educational institution under a one-year contract. Am I eligible for tax exemption? A. If the primary purpose of entering Korea is not teaching or research in an authorized educational institution, then you are not eligible for tax exemption. Q. If qualified, do I need a separate application for tax exemption? A. First, you need to fill out 3 copies of an Application for Non-taxation Treatment or Tax exemption of Corporate Tax Wage & Salary Income Tax Under the provision of the Tax Treaty (Form 29-2(3)) and submit them to the withholding agent/income payer with a certificate of residence issued by the revenue authorities of the country of your prior residence. Then, the income payer should submit 2 copies of the application to the Taxpayers Service Center of the competent district tax office by the 9th day of the following month of the month in which the first payment is paid. After the division in charge reviews your application, if qualified, you will be tax-exempted.

146 Q.? A... 관련법규 소득세법제119조 [ 비거주자의국내원천소득 ] 소득세법제156조의 2 [ 비거주자의국내원천소득중비과세등을적용받는경우비과세등의신청 ]

147 Q. What if I am not able to attach the certificate of residence with the application form, or submit the application form? A. Then, you cannot get tax exemption, and your earned income will be withheld. However, if you get and submit the certificate of residence from the revenue authorities of the country of your residence later, assuming you meet all the requirements, you can get the refund of the withheld tax amount. Related Laws Article 119 of Income Tax Act [Domestic Source Income of Non-resident] Article of Income Tax Act [Application for Non-Taxation, etc. on Domestic Source Incomes of Non-resident]

148 48 외국인기술자근로소득세면제 한국회사에서근무하는영국인기술자입니다. 한국에서근무하는외국인기술자 에게제공하는인센티브가있는지요? 만약있다면상세히설명해주세요. ( ) ,. * : ( )

149 Income Tax Exemption for Foreign Engineer 48 I am a British engineer working in Korea for a Korean company. Would you please let me know whether you still offer tax incentives for foreign engineers working in Korea? If these incentives are still available, please provide me with further details. Where service is performed in Korea by qualified* foreign engineers for a resident or a Korean company, income from the provision of such service is 50%-exempt from taxation, as long as the income is generated during a 2-year period commencing on the date such service is first rendered (provided this date is no later than December 31, 2011). The closing date of the 2-year period is delayed to the final day of the month of the exact closing date. However, you have to check whether your case meets the conditions described under the tax law. To be exempt from income tax on the wage and salary income, you should file a written application for tax exemption through your employer at the relevant district tax office by the 10th day following the month that the service was provided. You do not need to submit the application again unless there is a change in the content of the application. * foreign engineers eligibility for exemption.(see next page)

150 1. (30 ) ,,,,,,,,,,,,,, 4.,,,, 관련법규 조세특례제한법제 18 조 [ 외국인기술자에대한소득세의면제 ] 조세특례제한법시행령제 16 조 [ 외국인기술자의범위등 ]

151 1. A person who provides technology within Korea under an engineering technology license agreement with a contract amount of US$300,000 or more; 2. A person who serves as a researcher at a specific research institution subject to the Support of Specific Research Institutions Act; 3. A person who serves as a researcher at the Government-invested research institutions falling under any of the following : - Science and Technology Policy Institute, Korea Institute of Science and Technology, Korea Basic Science Institute, Korea Astronomy and Space Science Institute, Korea Research Institute of Bioscience and Biotechnology, Korea Institute of Science and Technology Information, Electronics and Telecommunications Research Institute, Korea Research Institute of Standards and Science, Korea Ocean Research and Development Institute, Korea Institute of Geoscience and Mineral Resources, Korea Institute of Machinery and Materials, Korea Aerospace Research Institute, Korea Institute of Energy Research, Korea Electrotechnology Research Institute, Korea Research Institute of Chemical Technology; 4. A person who serves under a contract of employment with an employer who operates a business in the technology-intensive, mining, construction, engineering and logistics industries, and who has served in those industrial fields for no less than 5 years, or who has served in the relevant field for no less than 3 years with a bachelor s degree or a higher academic degree, in a foreign country; or 5. A person who serves as a researcher at a qualifying research institute that is a nonprofit corporation as prescribed by the Minister of Education, Science, and Technology. Related Laws Article 18 of Tax Incentive and Limitation Law [Exemption of Foreign Engineers from Income Tax] Article 16 of Enforcement Decree of the Tax Incentive and Limitation Law [Scope of Foreign Engineers]

152 49 외국인관광객부가가치세환급 한국을방문한영국시민입니다. 곧영국으로귀국하려고하는데한국에서 물품구입시지불한부가가치세가환급되나요?. ( ) 3.. 1) 2 (, ). 2).. 3) (),., 20.( )

153 49 VAT Refund for Foreign Tourists I am a British citizen visiting Korea and will shortly be leaving the country permanently. I have purchased goods in Korea and want to know if it is possible to claim back the Value Added Tax (V.A.T.) I paid on them. Foreign tourists may receive refund for the amount of the VAT on the relevant goods that they bought from a duty free shop if the goods are to be taken outside of Korea. In order to claim a refund on VAT, you must present your identification (passport, etc.) before purchasing goods at the duty free shop designated by the district tax office and depart Korea within 3 months of the purchase. The procedure for refund claim is as follows : 1) In case of purchasing goods at a duty-free shop, you will be issued two copies of Certificate of Selling Goods for Overseas Visitor (one to submit to the customs office and another to retain) to you. 2) At the port of departure, please present the purchased goods and the Certificate of Selling Goods for Overseas Visitor to customs office, and get a stamp on the certificate. Customs office will check the purchased goods and the certificate for verifying exportation of the goods. 3) Then, please submit the confirmed Certificate of Selling Goods for Overseas Visitor for Submission to refund counter or mail it to the duty free shop at the mailbox located in the place of departure. If you put the confirmed Certificate of Selling Goods for Overseas Visitor for Submission into the mailbox, the duty free shop will give you a refund within 20 days from the date of receiving the copy of the Certificate of Selling Goods.(See next page)

154 (:, ). 관련법규 조세특례제한법제 107 조 [ 외국사업자등에대한간접세의특례 ]

155 If you make a purchase at a duty free shop that is registered at the Cash Refund office (e.g., Global Refund Korea, Korea Refund, etc,), please submit the Certificate of Selling Goods to the Cash Office and the office will give you the refund. Related Laws Article 107 of Tax Incentive and Limitation Law [Special Cases of Indirect Taxes on Foreign Business Operators, etc.]

156 50 외국사업자부가가치세환급 제회사는한국에사업장이없는미국법인입니다. 외국법인이한국에서지불 한호텔숙박료에포함된부가가치세를환급받을수있습니까? ( )., ) 2) 3) 4) 5) ( )

157 50 VAT Refund for Foreign Business Operators My company is a US corporation that does not have a business place in Korea. In this case, can my company get a refund for the VAT imposed on room accommodation fees that it paid at a hotel in Korea? A foreign corporation that has no place of business in Korea ( foreign business operators ) can claim a refund for Value Added Tax (VAT) applied to lodging services, provided such lodging services are business-related. However, this refund is not available to a foreign business operator with a total refundable amount for the calendar year of 300,000 or less. The refund of the VAT applies only when a relevant foreign country makes the same refunds to Korean businessmen, diplomats and diplomatic envoys. Goods and Services Qualified for VAT Refund 1. Food and lodging service 2. Advertising service 3. Electricity or communications service 4. Real estate lease service 5. Certain goods or services necessary for the operation and maintenance of a domestic office of a foreign business (See next page)

158 ( ) ( ) : 44 1 ( : ) 관련법규 조세특례제한법제 107 조 [ 외국사업자등에대한간접세의특례 ]

159 In order to receive the VAT refund for foreign business operators, you must submit an application for the VAT refund to the address below by June 30th of the following year with the following attachments. 1. One copy of the Certificate of Business Register (in English or Korean only) 2. One copy of a Transaction Report 3. The original copy of the Tax Invoice (Including sales statements of credit cards, etc. which show the VAT amount and personal data of the person who get a supply) Address: Return Analysis Div., Seoul Regional Tax Office, 104 Susong-Dong, Jongno-Gu, Seoul, , Republic of Korea Related Laws Article 107 of Tax Incentive and Limitation Law [Special Cases of Indirect Taxes on Foreign Business Operators, etc.]

160 51 사설교육기관영어강사의소득세면제여부 서울에있는작은사설교육기관 ( 학원 ) 에 7개월째근무하고있습니다. 한남아공조세조약 21조에의해소득세가면제된다고들었는데맞나요? - 21,. 1) :,, 2) : 3) : 4) : 2 () 관련법규 소득세법제119조 [ 비거주자의국내원천소득 ] 소득세법제156조의 2 [ 비거주자의국내원천소득중비과세등을적용받는경우비과세등의신청 ] 한 남아공조세조약제21조 [ 교수및연구자 ]

161 51 Exemption for English Teacher at Private Educational Institution I've been working for a small private educational institution in Seoul for the past 7 months. I have been told that under article 21 of the tax treaty between Korea and South Africa I will not have to pay any income tax in Korea at the moment. Is this correct? Under Article 21 of the Korea-South Africa tax treaty, an individual may be eligible for tax exemption for professors and researchers if he/she meets the following conditions. 1) inviting institutions : any university, college, school, or similar institution, which is recognized as non-profitable by the Korean government 2) purpose for the invitation : teaching or carrying out research at such institution 3) persons eligible for exemption : person who is, or immediately, before making such visit was, a resident of South Africa 4) tax-exempt income : remuneration for such teaching or research for a period not exceeding two years from the date of his first arrival in Korea. A private educational institution (hakwon) is not an institution recognized as non-profitable by the Korean government under the Korea-South Africa treaty. Therefore, you are subject to Korean tax liabilities on the remuneration you receive in return for your teaching at the hakwon. Also, if the number of days that you work in Korea exceeds 183 days, then the exemption provided under Article 14 and 15 of the Korea-South Africa tax treaty on remuneration received for certain personal services does not apply. Related Laws Article 119 of Personal Income Tax Law [Domestic Source Income of Non-resident] Article of Personal Income Tax Law [Application for Non-Taxation, etc. on Domestic Source Incomes of Non-resident] Article 21 of Tax Treaty between Korea and South Africa [Professors and Researchers]

162 제 1 편외국인상담사례 제 5 장 국내원천소득원천징수

163 Part 1 FAQ's and NTS Answers CHAPTER 5 Tax Withholding for Korean Source Income

164 52 조약상제한세율의적용및계산방법 조세조약상의제한세율이란무엇이며, 어떤경우에적용하는지?,.,... -, ( ),. -,. : 3 관련법규 국제조세조정에관한법률제 29 조 [ 이자 배당및사용료에대한세율의적용특례 ]

165 52 Treaty-Reduced Tax Rates and Their Application What are reduced tax rates and how do they apply? Treaty-reduced tax rates set the maximum level of tax rates allowable for treaty partners in taxing certain types of income. The applicable tax rate for those types of income is always the rate that is the smaller of the reduced treaty rate or treaty partner s domestic tax rate. For example, if a treaty partner s domestic tax rate is smaller than the treaty- reduced rate, then the domestic tax rate applies. If the treaty partner s statutory rate is greater than the treaty-reduced rate, then the treaty-reduced rate applies. In effect, treaty-reduced rates impose certain restrictions on a treaty partner's right to tax as provided for under its domestic tax law. Treaty-reduced rates apply when taxing interest, dividend, and royalties earned by non-residents and foreign corporations from sources within Korea. To be applied such treaty benefit, the following requirements must be met: - First, the beneficial owner of income must be a resident (both individual and corporation) of the other Contracting State and that resident must not have a permanent establishment in Korea. - Where the resident has a permanent establishment in Korea, the income in question must not be effectively connected with or attributable to that permanent establishment. For details of Korea s treaty partners, please refer to Appendix 3 Related Laws Article 29 of Law for the Coordination of International Tax Affairs [Special Application of Withholding Tax Rate on Interest, Dividend, and Royalties]

166 53 국내에서미국거주자가제공한독립적인적용역소득원천징수 미국거주자가독립적으로한국내에사업장없이 3 개월동안내국인에게 인적용역을제공하고, 내국인이그용역제공대가로 5,000 달러를지급하는경 우원천징수되는지요? ( 18). 1) 183 2) 3,000 3) 183 5,000, 22%( 2% ). 관련법규 한 미조세조약제 18 조 [ 독립적인적용역 ] 소득세법제 119 조 [ 비거주자의국내원천소득 ]

167 53 Tax Withholding on a US Resident's Performance of Independent Personal Service in Korea I am a US resident. I received US$5,000 for providing personal services to a Korean resident for three months, as a independent contractor and without having a business place in Korea. In this case, does the Korean resident withhold taxes from my income? If you are a US resident and have performed independent personal services in Korea without an employment agreement, the income from such services are taxable in Korea if you meet any one of the following requirements (Article 18 of the Korea-US tax treaty): 1) You were present in Korea for 183 days or more in the taxable year, 2) You have income exceeding US$ 3,000 for the tax year, or; 3) You had a fixed base in Korea for 183 days or more in the taxable year. Therefore, if you are a US resident and had received US$ 5,000 in compensation for independent personal services you offered, your tax for US$ 5,000 income is liable to Korean government under the Korea-US tax treaty. The payer of your income is required to deduct 22% (including 2% residents tax) of the total amount and this is to be withheld as income taxes and resident taxes. Related Laws Article 18 of Tax Treaty between Korea and US [Independent Personal Services] Article 119 of Income Tax Act [Domestic Source Income of a Non-resident]

168 54 단기영어캠프강사의소득세율 영국대학생인데, 개인적으로한국에 7월부터 8월사이 4주간체류하면서사설교육기관에서고용계약을맺지않고단기영어캠프강사를하려고합니다. 세율이어떻게되나요? 20(),, 관련법규 소득세법제119조 [ 비거주자의국내원천소득 ] 한 영조세조약제14조 [ 독립적인적용역 ] 한 영조세조약제20조 [ 교사 ]

169 54 English Teacher at Summer Camp What is the current income tax rate for summer camp teachers? I'm a university student in the UK and I will be in Korea for 4 weeks in July and August without an employment contract as an English summer camp teacher at a private education institution. Under Article 20 of the Korea-UK tax treaty, an individual who visits Korea for the purpose of teaching at a university, college, school, or other similar institution which is recognized as non-profit seeking by the Korean government is not taxed on the income earned from the said institutions. However, the private education institution you mentioned does not meet the requirements set under the above article and therefore, you cannot receive an exemption under Article 21 of the Korea-UK tax treaty. However, your earnings as a UK resident summer camp teacher at a private educational institution in Korea is categorized as independent personal service income under Article 14 of the Korea-UK tax treaty. This income is not taxable in Korea unless you have a fixed base in Korea. Therefore, you are not taxed in Korea. Related Laws Article 119 of Income Tax Act [Domestic Source Income of Non-resident] Article 14 of Tax Treaty between Korea and UK [Independent Personal Services] Article 20 of Tax Treaty between Korea and UK [Teacher]

170 55 이자소득원천징수세율 한국에 2년째근무하고있는주한벨기에외교관입니다. 한국의은행에서발생한이자소득에대하여세금을내야하는지요? 만약그렇다면세율은어떻게되는지요?.. 22%( ),, 15.4%( ). 10%( ). 10%( ).,. 관련법규 소득세법제156조 [ 비거주자의국내원천소득에대한원천징수의특례 ] 국제조세조정에관한법률제29조 [ 이자 배당및사용료에대한세율의적용특례 ] 한 벨기에조세조약제11조 [ 이자 ]

171 55 Withholding Tax Rate for Interest Income As a Belgium diplomat to Korea for the past two years, I was wondering whether I need to pay withholding taxes on interest income, created in the banks in Korea. If so, what would be the tax rate? If you are a foreign diplomat in Korea, you are treated as a non-resident for Korea tax purposes, irrespective of your length of stay in Korea. As a non-resident, you are liable to Korean taxes on the income derived from sources within Korea. Under the Income Tax Act of Korea, as a non-resident, you are withheld at a rate of 22% from interest income (this includes resident surtax). However, interest from bonds issued by the state, local government, or Korean corporation will be withheld at a rate of 15.4% (this includes resident surtax). However, under the Korea-Belgium tax treaty, taxes withheld from interest income cannot exceed 10% (resident surtax included). In your situation, the payer of your interest income must withhold income taxes at a rate of 10%, which includes resident surtax. To be applied the treaty-reduced tax rate, you must submit to your withholding agent documents certifying that you are a Belgium diplomat to Korea. Related Laws Article 156 of Income Tax Act [Special Case of Collection through Withholding of Tax on Income Accruing from Domestic Source of Non-resident] Article 29 of Law for the Coordination of International Tax Affairs [Special Application of Withholding Tax Rate on Interest, Dividend, and Royalties] Article 11 of Tax Treaty between Korea and Belgium [Interest]

172 56 배당소득원천징수 한국법인의주식을가지고있는독일인투자자입니다. 제배당소득에대해서 22% 원천징수되었습니다. 한국과독일의조세조약을보면배당소득에대한제한세율은 15% 입니다. 초과징수된 12.5% 에대한환급신청은어떻게해야하나요? 22% ( ). 15%( ).,. 관련법규 소득세법제 156 조 [ 비거주자의국내원천소득에대한원천징수의특례 ] 한 독조세조약제 10 조 [ 배당 ]

173 56 Tax Withholding from Dividends I am an individual investor from Germany, and my dividends from Korean stocks were withheld at a rate of 22%. In the tax treaty between Germany and Korea the withholding tax is limited to 15% for dividends. What is the procedure for receiving a refund of the overpaid 12.5% withholding tax? What documents/form do I need to submit to whom? Generally, this type of income (i.e., dividends) paid to a non-resident is taxable at source at 22% (resident surtax included) under the Korean Income Tax Act. However, the Korea-Germany tax treaty stipulates that taxes cannot be withheld from dividends at a rate exceeding 15% (resident surtax included). If you are withheld at a higher rate than the reduced treaty rate, you can claim a refund of the excess amount by submitting a document to your withholding agent that certifies your status as a German resident. Related Laws Article 156 of Income Tax Act [Special Case of Collection through Withholding of Tax on Income Accruing from Domestic Source of Non-resident] Article 10 of Tax Treaty between Korea and Germany [Dividends]

174 57 체육인의이적료원천징수 한국의프로축구구단에서호주프로축구선수를스카웃하면서해당선수의원소속구단에지급하는이적료가국내원천소득중어떤소득에해당하는지요? 그리고외국인선수이적료를계약대행사에게지급하는경우계약대행사의거주지국과외국인선수소속클럽의거주지국과의조세조약중어느조세조약을적용하는지요?.,.. 22., 22%( ). 관련법규 법인세법제93조 [ 국내원천소득 ] 법인세법제98조 [ 외국법인에대한원천징수또는징수의특례 ] 한 호주조세조약제22조 [ 기타소득 ]

175 57 Tax Withholding from an Athlete's Transfer Fee In a sale of a soccer player from Korean to Australian soccer clubs, what type of domestic income source is the transfer fee that was paid to the Australian soccer club? And if the foreign agent receives transfer fee, which tax treaty is appliable, between Korea and Australia or between Korea and resident country of agent? If an Australian professional soccer team receives transfer fee from a Korean professional soccer team in compensation for transferring all rights and duties of the athlete, such transfer fee is deemed as other income derived from sources within Korea under the Korean Income Tax Act. The applicable tax treaty in relation to transfer fees is the tax treaty between Korea and the resident country of the professional soccer team which the athlete originally belonged to, not the resident country of the agent. It is the Korea-Australia tax treaty that applies in this case. According to Article 22Income not expressly mentionedof the Korea- Australia tax treaty, income not expressly mentioned in the bilateral treaty may be taxed in Korea if derived from sources within Korea. As for the method of taxation, the Korean professional soccer team must withhold tax at a rate of 22% (resident surtax included) from the athlete transfer fee it pays to the Australian professional soccer team at the time of payment. Related Laws Article 93 of Corporation Tax Law [Income Generated from Sources in Korea] Article 98 of Corporation Tax Law [Special Cases for Withholding or Collection for Foreign Corporations] Article 22 of Tax Treaty between Korea and Australia [Income Not Expressly Mentioned]

176 58 조약상제한세율의적용및계산방법 조세조약상의제한세율이란무엇이며, 어떤경우에적용하는지?,.,... -, ( ),. -,. : 3 관련법규 국제조세조정에관한법률제 29 조 [ 이자 배당및사용료에대한세율의적용특례 ]

177 58 Treaty-Reduced Tax Rates and Their Application What are reduced tax rates and how do they apply? Treaty-reduced tax rates set the maximum level of tax rates allowable for treaty partners in taxing certain types of income. The applicable tax rate for those types of income is always the rate that is the smaller of the reduced treaty rate or treaty partner s domestic tax rate. For example, if a treaty partner s domestic tax rate is smaller than the treaty- reduced rate, then the domestic tax rate applies. If the treaty partner s statutory rate is greater than the treaty-reduced rate, then the treaty-reduced rate applies. In effect, treaty-reduced rates impose certain restrictions on a treaty partner's right to tax as provided for under its domestic tax law. Treaty-reduced rates apply when taxing interest, dividend, and royalties earned by non-residents and foreign corporations from sources within Korea. To be applied such treaty benefit, the following requirements must be met: - First, the beneficial owner of income must be a resident (both individual and corporation) of the other Contracting State and that resident must not have a permanent establishment in Korea. - Where the resident has a permanent establishment in Korea, the income in question must not be effectively connected with or attributable to that permanent establishment. For details of Korea s treaty partners, please refer to Appendix 3 Related Laws Article 29 of Law for the Coordination of International Tax Affairs [Special Application of Withholding Tax Rate on Interest, Dividend, and Royalties]

178 제 1 편외국인상담사례 제 6 장 사업자등록 민원증명 기타

179 Part 1 FAQ's and NTS Answers CHAPTER 6 Business Registration Tax-related Certificates Other Tax Issues

180 59 부가가치세납세의무자 부가가치세의납세의무자는누구인가요?. ( ) 관련법규 부가가치세법제2조 [ 납세의무자 ] 부가가치세법제5조 [ 등록 ] 부가가치세법시행령제7조 [ 등록신청과등록증교부 ]

181 59 Taxpayers Liable to VAT Who is liable to pay value added tax (VAT)? A person who engages in the supply of goods or services independently in the course of business, whether or not for profit, is liable to pay value added tax (VAT). Taxpayers subject to VAT include individuals, corporations, national and local governments, associations of local authorities, and unincorporated foundations or organizations. A person who newly starts a business must register each business place at the district tax office within 20 days from the business commencement date. It is possible to register before the business commencement date. Then the tax office having jurisdiction over the business place of the business operator shall issue a certificate of business registration to the business operator concerned. Related Laws Article 2 of Value Added Tax Law [Taxpayer] Article 5 of Value Added Tax Law [Registration] Article 7 of Enforcement Decree of the Value Added Tax Law [Registration Application and Registration Certificate Delivery]

182 60 인터넷을통한홈택스서비스 종합소득세신고를하려고하는데, 인터넷으로도가능한가요?. -,,,....,. - (,, ) - (,, ) - (,,,,, ),.

183 60 Hometax : Internet Taxpayer Service Can I file my global income tax return over the Internet? You can file your global income tax return over the Internet by creating a user account at the Hometax website. Hometax is an Internet-based, one-stop service channel for filing returns, paying taxes, requesting certification documents, and viewing past returns and payment history. Such services are available to taxpayers in their home or office without having to visit a tax office. You may create a user account by submitting an application at the Taxpayer Service Center in a tax office nearest to you, or at the Hometax website using a digital certification of identification (which is an Internet-based identification system). For more information on how to use Hometax, please visit the nearest tax office. Be sure to bring a copy of your certificate of foreign registration for proper identification when applying for a Hometax account at the tax office. Hometax is available in the Korean language only. Service offerings - e-filing of returns (e.g., corporation tax, global income tax, VAT, etc.) - e-payment of taxes (on electronically declared taxes, noticed taxes, delinquent taxes, etc.) - e-issuance of Certifications (Certificate of Business Registration, Certificate of Business Suspension / Close of Business, Tax Clearance Certificate, Certificate of Tax Payment, Certificate of Income, Certificate of Tax Base on VAT etc.) A digital certification of identification is required for e-payment and issuance of Certificate of Tax Payment and Certificate of Income.

184 61 사업자등록신청방법 사업자등록은어떻게신청하고또신청수수료는얼마입니까?, ) ( ) 2) 3) 4) ( ) 5) :,.. 관련법규 부가가치세법제 5 조 [ 등록 ] 부가가치세법시행령제 7 조 [ 등록신청과등록증교부 ]

185 61 Application for Business Registration How do I apply for business registration and how much is the registration fee? In order to start a business in Korea, you or a third party having notarized power of attorney need to have your business registered. The business registration must be made at the tax office with jurisdiction over the place of business within 20 days of the commencement of business. The required documents are as follows: 1) Business registration application (available at the tax office) 2) Copy of Business Permit or Certificate of Business Declaration, if there is a legal requirement for the business to obtain a permit, or to be registered or declared 3) Copy of the lease agreement (if the place of business is leased) 4) Partnership agreement (for parties to a joint business) 5) Documents certifying that you are either a Korean national living abroad; or a foreigner in Korea - Copy of passport or registration certificate of foreigner - Where the applicable person is expected to be present outside Korea for 6 months or more : Report on the Designation of a Tax Manager When registering your business before the commencement date, and prior to obtaining a permit or declaring your business, a copy of Application for Notification of Business Commencement or Business Plan is accepted in lieu of a copy of Business Permit or Certificate of Notification of Business Commencement. There is no fee with regards to business registration. Related Laws Article 5 of Value Added Tax Law [Registration] Article 7 of Enforcement Decree of the Value Added Tax Law [Registration Application and Registration Certificate Delivery]

186 62 사업자등록신청방법 ( 예 : 음식점 ) 한국에온지 3년된몽골사람입니다. 이태원에서몽골음식전문식당을개업하려고합니다. 사업자등록신청은어떻게하며, 신청하면바로사업자등록증을발급받을수있나요? 20 (). - ( ) - () - 3( )., 5, 10..,. 관련법규 부가가치세법제 5 조 [ 등록 ]

187 62 Business Registration(e.g., Restaurants) I am from Mongolia and have been in Korea for 3 years. I will be opening a Mongolian restaurant in Itaewon. What is the procedure for applying for business registration and how soon will I be issued one? To register your Mongolian restaurant as a business in Korea, you need to prepare the following documents and submit those with an application for business registration to the head of the district tax office (head of the Yongsan district tax office, in your case) within 20 days of the commencement of business: - Application for Business Registration (available at the tax office) - Copy of Certificate of Reporting of a Restaurant issued by the head of local government (head of Yongsan Gu Office) - Copy of lease agreement (if the place of business is leased) The head of the relevant district tax office shall review your application and issue you a Business Registration Certificate with a registration number within three days (not counting Saturdays, Sundays, and Labor Day) from the date of application. Where necessary for verification of business place, etc., the issuance date may be delayed by an additional five days. In some of the necessary documents were not attached to the application form, the head of the district tax office may designate a period not exceeding ten days within which a complete set of documents must be submitted. In this case, the number of days given to an applicant for the completion of documents shall not be counted in the five day limit for issuance. In addition, the head of the district tax office may also register a business him/herself upon inspection of the business place, where a business had commenced without registration. Conversely, if an applicant had applied for business registration before the start of business but fails to start one, the head of the district tax office may reject the application. Related Laws Article 5 of Value Added Tax Law [Registration]

188 63 사업용계좌의개설 사용의무 이탈리안음식점을운영하고있습니다. 사업용계좌를만들어야한다고들었는 데어떤건가요? ().. 1) 2). - - ( )

189 63 Creation & Use of Business-Purpose Bank Account I own an Italian restaurant and I've been told to create a business-purpose bank account. Can you tell me what that is? Self-employed individuals (subject to the liability of double bookkeeping) are required to keep a separate set of bank accounts for business transactions and for personal transactions. All business-related financial transactions must be settled using the bank account created specifically for business purposes ( business-purpose bank account ). If you are subject to double book-keeping, you are required to use a business-purpose bank account for the following transactions made in the course of business that involve the trade of goods and services: 1) Settlement of a payment made through a bank in relation to the purchase and supply of goods and services 2) Receipt or payment of salaries and rental fees To be a valid business-purpose bank account, it must be an account that is : - Created at a financial institution (e.g., banks), and - Used solely for business-related purposes(see next page)

190 ( ) 3.. * : - : 3 -,, : 1.5 -, : 75 관련법규 소득세법제81조 [ 가산세 ] 소득세법제160조의 5 [ 사업용계좌의개설ㆍ사용의무등 ] 소득세법시행령제208조의 5 [ 사업용계좌의개설등 ]

191 Any person subject to bookkeeping by double entry shall open a business account within three months from the commencing date of the taxable period wherein he is subject to bookkeeping by double entry(the commencement date of the next taxable period in cases where he is subject to thereon with the Head of a tax office having jurisdiction over his place of business. Failure to comply with the business-purpose bank account requirement will be subject to a penalty. * Taxpayers subject to double book-keeping : Self-employed individuals with revenue in an amount that varies depending on the industry: - Wholesale/Aretail : 300,000,000 or more - Manufacturing, food, lodging : 150,000,000 or more - Real estate rental, service : 75,000,000 or more Related Laws Article 81 of Income Tax Act [Penalties] Article of Income Tax Act [Liability for Creation and Use of Business- purpose Account] Article of Enforcement Decree of the Income Tax Act [Creation of Business-purpose Account, etc.]

192 64 소득금액증명 한국에서의영어교사근무기간이끝나갑니다. 제가캐나다에돌아가서한국 에서발생된소득과세액을신고해야하는데요, 무엇을어떻게해야하나요? ( ( Help Desk Contact Your District Tax Office)....( )

193 64 Certificate of Income I will soon be completing my work as an ESL teacher in Korea, and have to report my Korean income and taxes in Canada. What do I need to do? You can verify the amount of income and taxes paid within Korea by obtaining a Certificate of Income from any district tax office or through the NTS Hometax website ( You can find the location, phone number, and address for any district tax office by clicking the Contact Your District Tax Office section on our website. ( Help Desk Contact Your District Tax Office) In order for there to be a Certificate of Income, your taxes need to have been settled either through year-end tax settlement (which your withholding agent completes) or through global income tax return filing (which you submit). In your specific situation, you would have to wait until your employer ( withholding agent ) completes the year-end tax settlement, normally at the time he/she issues you your final monthly paycheck, before you can obtain a Certificate of Income. However, if your employer hadn t completed the settlement of your income taxes for the current year, it would be difficult to certify the income amount and taxes paid thereon until the close of the current year. Where this is the case, your pay slip can serve as an alternative certification of your earnings, until the Certificate of Income is available.(see next page)

194 5.... 관련법규 소득세법제 137 조 [ 근로소득세액의연말정산 ]

195 The year-end tax settlement for the previous year is usually reflected on the Certificate of Income around May next year. Therefore, if you want to verify details of the amount of income and taxes paid in Korea for the previous year before May, you shall first check your gross income and taxes paid of the previous year from the "Receipt for Wage and Salary Income Tax Withholding", which is issued by your withholding tax agent. Please ask about the issuable date for the Certificate to the competent district tax office. If you wish to obtain a Certificate of Income, you or a third person having notarized power of attorney must complete an application form and submit it at the Taxpayer Service Center of your district tax office, or access the Hometax website for online application. This certificate can also be used to support any claim to foreign tax credit in your home country. Related Laws Article 137 of the Income Tax Act [Year-end Tax Settlement of a Tax Amount on Wage and Salary Income]

196 65 거주자증명서 서울에서거주하면서일하고있는프랑스인입니다. 올해처음으로한국에소득세를납부하였는데, 프랑스세무서에서한국의거주자로서한국에서세금을납부했다는증명을하라고하는데요. 어떻게해야하나요?..,.. ( 관련법규 국제조세조정에관한법률시행령제 43 조 [ 거주자증명서발급절차 ]

197 65 Certificate of Residence I am a French employee working in an office in Seoul and I paid income tax in Korea for the first time this year. The French tax office needs a certificate that attests that I paid income tax as a resident in Korea. What do I need to do? You can obtain a Certificate of Residence and Certificate of Income at any district tax office. The Certificate of Residence is a document that proves your Korean residence status to a foreign government for purposes of applying the tax treaty rate, tax exemption, etc. If you meet the requirement for a resident of Korea under the Korean Tax Law, you can obtain a Certificate of Residence, also issued in English. It is issued at the time of submitting an application and the documents proving your residence at the district tax office. You can verify the amount of income and taxes paid within Korea by obtaining a Certificate of Income from any district tax office or through the NTS Hometax website ( If you wish to obtain this certificate, you or a third person having notarized power of attorney must complete an application form and submit it at the Taxpayer Service Counter of your district tax office, or access the Hometax website using a digital certification of identification for online application. Related Laws Article 43 of Enforcement Decree of the Law for the Coordination of International Tax Affairs [Procedure for Issuance of Certificate of Residence]

198 66 사업자유형 휴폐업 영문민원증명확인 거래상대방의사업자등록여부와사업자의상태를알고싶습니다. 또, 발급받은영문민원증명의원본여부를확인하고싶습니다 ( ) ( Check Certificate Authenticity( )

199 66 Business type, Authentification of Certificates in English How do I check company details, such as registration and business status? Also, I'd like to verify the authentification of English certificates issued. The information you need is on the NTS website. 1. Check Taxable Type & Business Status You can check the taxable type of the business and the business status in the NTS website by entering the business registration number. (Available in Korean only) ""(Inquiry & Account) " "(Taxable Type of business/business status) " " (Check) 2. Authentification of English certificates As of Nov., 2012, authenticity of ten types of English certificates issued by the NTS can be verified in the NTS website. Check Certificate Authenticity (At the bottom of the screen)

200 67 수정신고와경정청구 한국에거주하는원어민교사인데요 2007 년도소득세신고가잘못되었습니 다. 제가무슨절차를밟아야하나요? (: ). - - (: ) ( )

201 67 Revised Return & Request for Correction I'm a native English teacher who is living and working in Korea. I filed my income tax return for 2007 and I found out some errors on the return recently. What should I do? Revised Return Any person who filed a tax return(e.g. Income tax retrun) within legal return term may file a revised tax return until the tax authority determines, corrects or notifies the tax base and amount of the national tax pursuant to the provisions of tax laws in such cases as follows: - Where the tax base and tax amount filed is short of the tax base and tax amount subject to reporting under tax laws - Where the deficit amount or refundable tax amount filed exceeds the deficit amount or refundable tax amount subject to reporting under tax laws Request for Correction Any person who filed a tax return(e.g. Income tax retrun) within legal return term may request decision or correction of the tax base or national tax amount from the head of the competent tax office within 3 years after the due date of return filing in such cases as follows. Here, when the head of a district tax office receives a request for decision or correction, the head shall decide or correct the tax base and amount, or notify the concerned person of the results from such decision or correction within 2 months after the head receives such request. - Where the tax base and tax amount filed exceeds those subject to reporting under tax laws - Where the deficit amount or refundable tax amount filed is short of the deficit amount or refundable tax amount subject to reporting under tax laws(see next page)

202 , 관련법규 국세기본법제 45 조 [ 수정신고 ] 국세기본법제 45 조의 2 [ 경정등의청구 ]

203 As for a person who only has wage and salary income and whose income for the relevant year has been settled and finalized through the year-end tax settlement, a withholding agent withholds tax on the wage and salary income above and submits the payment record to the competent district tax office within the due date for submission according to relevant tax laws. Here, the withholding agent or the person liable for paying withholding tax may request the head of the competent tax office to decide or correct the tax base and amount on the filed Withholding Receipt within 3 years after the due date of paying the tax amount of year-end adjustment or the withheld tax amount in such cases as follows. - Where the tax base and tax amount written on the withholding receipt exceeds those subject to reporting under relevant tax laws - Where the refunded tax amount written on the withholding receipt is less than the amount subject to refund under the relevant tax laws Related Laws Article 45 of the Framework Act on National Taxes[Revised Return] Article 45-2 of the Framework Act on National Taxes[Request for Correction, etc.]

204 제 2 편 서식 제 1 장연말정산 종합소득세신고 제 2 장민원서류

205 Part 2 Tax Forms Chapter 1 Year-end Tax Settlement Global Income Tax Return Chapter 2 Tax-related Documents

206 제 2 편서식 제 1 장 연말정산 종합소득세신고

207 Part 2 Tax Forms CHAPTER 1 Year-end Tax Settlement Global Income Tax Return

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277 Note Head of District Tax Office This is an important mail with private information, and should be promptly delivered to the taxpayer himself/herself or the taxpayer's proxy. <For taxpayers with single income, who are subject to Simplified Expense Rate> Global Income Tax Return Please note that penalties are imposed if a taxpayer fails to file a return even if taxes were paid. Please make sure that fill out this form and submit it to the district tax office by mail or e-filing service. Other income such as wages and salaries, etc. besides amount of income written in this form shall be reported comprehensively using the following Form 40 (1)

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279 [Form 40 ] (Page 2) (For the year of ) Final Return Base and Computation of Ref. No Residency Resident1 /Non-resident2 Tax to be paid For Global Income Tax and Local Income Tax Nationality Citizen1 /Foreigner9 Basic Information (Single Income - Simplified Expense Rate) State of Residence Name Resident Reg. No Company Name Tax Reg. No. Address Home Phone No Type of Return Business Type code Bank Account for Tax Refund Estimate- Simplified Rate Write down your Gross Revenue Business Phone No Classification by bookkeeping Simplified Expense Rate(%) Name of Bank/post office Mobile No State code Simplified bookkeeping Type of Income Real Estate Rental Income Business Income Basic Rate Excess Rate Account No Computation of Global Income Tax Classification Return Classification Necessary Expense based on Simplified Expense Rate : Gross Revenue Simplified Expense Rate(%) Amount of Global Income : Total Income Allowances : Total of Detail of Income allowances() list of inco me deduc tion List of tax credit Relation ship List names of personal deductions Name Nationality Resident Registration No Personal Deduction Regular Amended declaration 술 Return after due date Amount Classification No. of persons Amount Taxpayer him/herself Basic Spouse Dependants Person who is 70 or older The handicapped Addi tiona Female worker l Lineal descendant less than 6 years of age New born/newly adopted Additional deduction for households with multiple children Enter the deduction amount of donation expenses referring the instruction of donation deduction(page 4) Standard Deduction : 600,000won Personal pension savings deduction : Fill out the blank with the less amount between the 40% of personal pension savings paid in the previous year and 720,000won Pension savings deduction: Fill out the blank with the less amount between pension savings paid in the previous year and 3,000,000won Pension insurance premium deduction : write down the amount of the national pension insurance premium paid up last year. Tax Base : (If the amount is less than 0, this is 0 ) Tax Rate : Enter the tax rate by referring to the instruction(page 4) Tax Calculated : Progressive Deduction by referring to the instruction(page 4) Tax Credit : Enter the total of tax credits below() Tax credit for taxpayer association : Enter the amount of Tax credit for taxpayer association listed in line 33 of Receipt of Taxpayer Association. Tax credit for e-filing : If taxpayer directly files a e-filing return through a internet, 20,000 won is available Tax credit on political fund donations: The entire amount for donations of 100,000 won or less made to political parties (by support groups, the National Election Commission, etc) during the current year, and 100,000 won for donations exceeding 100,000 won Tax credit carryovers(including e-filed tax credits which was not deducted from the previous year) Special Tax Deduction for Small&Middle Size Business Tax Determined: (If the amount is less than 0, this is 0 )

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282 작성방법

283 작성방법 1. Sim plified E xpense R ate is applied to the self-em ployed w hose aggregate incom e of the previous year is below the am ount listed as below by line of business and to new starters of the current year.(y our Sim plified Expense Rate is com puterized and specified on the tax return form ) (1) A griculture, H unting & Forestry, Fishing, M inning, W holesale and R etail T rade, and other types of business which do not fall under following categories : 60 m illion won (2) M anufacturing, H otels and R estaurants, E lectronicg as and W ater-supply, C onstruction, T ransport, Storage & Com munications, Finance & Insurance : 36 million won (3) Real Estate, Service(Personal Service) : 24 m illion won Starting from Jan. 1,2008, simplified expense rate shall not apply to self-employed individuals with professional occupations(e.g.,doctor, lawyer, tax account, etc.) as specified in 143 of the Enforcement Decree of Income Tax Law 2. Name of Bank/post office & Account No.: fill out if the taxpayer has tax due or tax refundable in Tax Due or Tax Refundable. If the tax amount to be refunded is 20 million won or more, you are required to submit a copy of your bankbook with a Declaration of Account Opening/Change 3. Detail of Personal Deduction : Enter personal information on the taxpayer him/herself, spouse and dependents subject to personal deduction. (1) Relationship code : Please state relationship to employee Yourself=0 Linear ascendant of yourself=1, Linear ascendant of spouse=2, spouse=3, Childeren or adopted=4, Other linear descendants (if the linear descendant and his/her spouse are both handicapped, the spouse is also included)=5, Brother and Sister=6, taxpayers subject to the Basic Livelihood Security System=7, Foster children=8 (2) Nationality code : Citizen 1, Foreigner 2 4. Basic Deduction : 1,500,000 won per capita is deductible(number of persons 1,500,000 won) for yourself and family (1) a spouse whose annual income is not more than one million won in the aggregate (2) a dependent falling under any of the following items and living together with the resident (including his spouse) and whose annual income is not more than 1 million won in the aggregate. The handicapped among dependents qualify for deduction regardless of age. (1) A lineal ascendant aged sixty or older(fifty-five for female) (2) A lineal descendant of the resident or adopted person living together with resident aged twenty or less (if the child (or the adopted ) living with the taxpayer is handicapped, the child's spouse is included) (3) A sibling aged under twenty or over sixty (4) A recipient under Article 2(2) of the National Basic Living Security Act (5) When the foster child is fostered first hand for 6 month or longer during the attributable taxation period under the provision of the Child Welfare Act. 5. Additional Deduction : If a taxpayer subject to the basic deduction meets any of the following conditions, he/she can receive additional deduction 70 years or older: 1 million won per dependent A handicapped person: 2 million won per dependent A female worker having no spouse and a householder having dependents, or a woman having a spouse: won per dependent A lineal descendant of the resident or adoptee under six years old : 1 million won New born or newly adopted : 2 million won 6. Additional deduction for households with multiple children : If the number of children of residents who have business income eligible for basic deduction is 2, enter 500,000 won. If the number of eligible children is 3 or more, enter the sum of 500,000 won for the first and second child combined and 1 million per child from the 3rd child. 7. Deduction for donations: Fill out the form 45 of the Statement of Donation first and deduct certain amount from donations within the deduction limit by types of donation codes. 8. T ax R ate is applied to the tax rate in the table below according to your tax base of Tax calculated : tax base() tax rate() - progressive deductions Tax Base Yr. Tax Rate (Unit : 10,000 Won) Table of Tax Rate 2009 From 2010 To 2011 After 2012 Progressive Deduction Tax Rate Progressive Deduction Tax Rate Progressive Deduction Not more than % - 6% 6% Over 1,200Not more than 4,600 16% % % 108 Over 4,600Not more than 8,800 25% % % 522 Over 8,800 35% 1,414 35% 1,490 33% 1,314

284 제 2 편서식 제 2 장 민원서류

285 Part 2 Tax Forms CHAPTER 2 Tax-related Documents

286 [ 12 ] 영문증명발급신청서 () () () () () () () ( ) () () () () () ( ) () () () () (, ) () () () () () () () () () (, ) * () (, APT., BD.). ( )

287 [ 2 ] Issuance number ( ) Name of company Business registration number ( ) Name of representative () Resident(Corporation) registration number Address Date of business commencement Date of business registration Business type Business item Joint business ow ner 사업자등록증명 Certificate of Business Registration () Name (Name of company) Processing period Immediately () Resident(Taxpayer) registration No.. W e hereby certify the above. Receipt No. Department Staff in Charge Telephone No. Taxpayer Service Center Year Month Day () Head of ( ) District Tax Office (Stamp)

288 [ 4 ] Issuance number () Name of representative () Name of company ( ) Address (Head Office) ( ) Address (Branch) 납세사실증명 Certificate of Tax Payment ( ) Resident(Corporation) registration num ber Business registration number Processing period Immediately ( : ) (Unit : Won) Tax year Type of tax Date of tax payment Total tax amount National Tax Education Tax Defense Tax Special Tax for Rural Development Surcharge. We hereby certify the above. Receipt No. Department Staff in Charge Telephone No. Taxpayer Service Center Year Month Day () Head of ( )District Tax office (Stamp)

289 [ 6 ] Issuance number Address Name Type of income Tax year 소득금액증명 C ertificate of Incom e For individual taxpayers who file global income tax returns () For individual taxpayers who file income tax returns by year-end settlement Withholding agent ( ) Name of company Business registration number Resident registration number ( : ) (Unit : Won) () Amount of income Processing period Immediately Total income tax calculated. We hereby certify the above. Year Month Day Receipt No. Department Staff in Charge Telephone No. Taxpayer Service Center () Head of ( ) District Tax Office (Stamp) Income to be covered - : () Taxpayers who file global tax return : Global income - : Wage & Salary income earner subject to year-end settlement : Taxable Wage & Salary income - : () Business income earner subject to year-end settlement : Business income for the year

290 [ 8 ] Issuance number ( 휴업폐업 ) ( ) Name of company Business registration number ( ) Name of representative () Resident(Corporation) registration number Address Business type Business item Date of business commencement Period of business suspension Date of business close Joint business owner 사실증명 (Certificate of Business Suspension / Close of Business) () Name (Name of company) Processing period Immediately () Resident(Taxpayer) registration No.. We hereby certify the above. Receipt No. Department Staff in Charge Telephone No. Taxpayer Service Center Head of ( Year Month Day () ) District Tax Office (Stamp)

291 [ 10 ] Issuance number Taxpayer () Name of company () Name of representative ( ) Address(Head office) Purpose of certificate 납세증명서 Tax Clearance Certificate Billing Others Processing period (, 10) Immediately (Ten days for Emigration Passport) B usiness registration N o. Resident registration No. Emigration Em igration num ber E m igration affirm ation date No. Year Month Day ( : ) Suspension of Tax Collection or Suspension of Disposition of Delinquent Tax (Unit : Won) Type of taxes suspended Period of taxes suspended Tax year Tax item Due date for tax payment Tax amount Surcharge 6 6. I hereby certify that there are no Suspension of Tax Collection or Suspension of Disposition of Delinquent Tax other than those described above as of this day under Article 6 of the National Tax Collection Law and Article 6 of the Enforcement Decree of the National Tax Collection Law. 1. This certificate is valid until Year Month Day 2. Reason for determining the validity date: 7 1 Paragraph 1 of the Article 7 of the Enforcement Decree of the National Tax Collection Law ( ) Others ( ) Receipt No. Year Month Day Department Staff in Charge Telephone No. Taxpayer Service Center () Head of ( ) District Tax Office (Stamp)

292 [ 16 ] Issuance number () Name of representative () Name of company Business type Address Taxing period From Until 부가가치세과세표준증명 ( ) Certificate of VAT Tax Base (also available for companies both in taxable and tax-exempt business) () Resident (Corporation) registration number Business registration num ber Business item () Tax base of sales (Amount of income) Total Taxable amount Tax-exemption Processing period Immediately : (Unit: Won) Tax payable. We hereby certify the above. Receipt No. Department Year Month Day Staff in charge () Head of ( ) District Tax Office (Stamp) Telephone No.

293 [ 18 ] Issuance number Name Name of company Business type Address From 부가가치세면세사업자수입금액증명 Certificate of Income of a VAT-Exempt Business Entity Taxing period Until Resident registration number Business registration number Business item Amount of income Processing period Immediately ( : ) (Unit: Won) Receipt No. Department Staff in Charge Telephone No.. We hereby certify the above. Year Month Day () Head of ( ) District Tax Office (Stamp)

294 [ 19 ] Issuance No. () Name of Company () Name of Representative Business Type Business Item Business Place Tax Year 표준재무제표증명 Certificate of Standards Financial Statements (Individual) (Corporation) List of attachments Business Registration Number Resident Registration Number Processing Time Immediately - Standard Balance Sheet - Standard Income Statement - Standard Cost Sheet. We hereby certify that the attached standard financial statements are equal to the financial statements that I submitted to a district tax office during the final return period for Coporate(income) tax base. Receipt No. Department Staff in charge Telephone No. Head of ( Year Month Day () ) District Tax Office (Stamp)

295 [ 17 ] ( ) 대한민국과 ( ) 간의이중과세방지협약적용대상거주자증명서발급신청서 Application for Certification of Residence for the purpose of the Double Taxation Convention between the Republic of Korea and ( ) 1. Beneficiary Address Name of Company (Fill in if the Recipient is not individual) Name () Taxpayer Identification Number (Resident Registration Number) 2. Income Type of Income Interest, Profit sharing bonds () Date of Payment or Due Date Name of the Payer Principals or Investments Accrual Period of Income Gross Amount of Income () Tax Payable (Refund) Dividends Royalties ( ) ( ). Please certify that the company(or individual) is a Korean resident for the purpose of the Double Taxation Convention between the Republic of Korea and ( ). Year Month Day ( ) Applicant Signature 세무서장 ToDirector of ( ) District Tax Office ( 54g/)

296 [ 18 ] ( ) Issuing Number 대한민국과 ( ) 간의이중과세방지협약적용대상거주자증명서 Certification of Residence for the purpose of the Double Taxation Convention between the Republic of Korea and ( ) 1. Beneficiary Address Name of Company (Fill in if the recipient is not individual) () Taxpayer Identification Number (Resident Registration Number) Name 2. Income Type of Income () Date of Payment or Due date Name of the Payer Principals or Investments Accrual period of Income Gross Amount of Income () Tax Payable (Refund) Interest, Profit sharing bonds Dividends Royalties. The Commissioner hereby certifies the above. Year Month Day ( ) () For the Commissioner of the Director of ( ) District Tax Office Official National Tax Administration Stamp ( 54g/)

297 [ 1 ] () 비거주자등의국내원천소득에대한소득세 ( 법인세 ) 납세사실증명 Certificate for Non-resident's Tax Payment

298 [ 292(1)] < , , > 이자 배당 사용료 기타 처리기한소득에대하여 법인세조세조약에따른 소득세비과세 면제신청서즉시 ()

299 Form 29-2 (1) Interest Dividends Royalties Other Application for Tax-Exemption on Non-Resident's Korean Source Income Provided under the Korea Tax Treaty Corporate Income tax Individual Income tax Processing Period Upon Submission Beneficiary Payer Type of Income 1 Name 2 Resident(Business) Reg. No. 3 Address 4 Resident Country 5 Code for Resident Country 6 Name of Corporation (Korean) (English) 7 Name of Representative 8 Business Reg. No. 9 Address 10 Interest Bonds Bonds Investment Trust Deposit and Savings Loans Other Securities Investment Trust Deemed Dividends Dividends between 11 Dividends Corporations Other 12 Royalties Patents, Trademark Copyrights Equipment lease Other 13 Other Interest / Dividend Income 14 Account Number 15 Real Name Confirmed 16 Date of Payment 17 Amount Paid 18 Tax Rate 19 Tax to be Withheld 20 Tax Exempted Basis for Tax-Exemption Article ( ), Paragraph ( ), Subparagraph ( ) of the Tax Treaty between Korea and ( ) Tax-Exemption Period Year Month Day ~ Year Month Day I hereby submit an Application for Tax-Exemption on Non-Resident's Korean Source Income in accordance with Article 98-4 (or 156-2) of the Corporation Tax Law (or Income Tax Law) and Article (or 207-2) of its Enforcement Decree. Year Month Day Applicant (Signature or Chop) To The Chief of ( ) District Tax Office Type of Agent Tax Agent Other Agent Name of Individual or Corporation Agent Resident(Business) Reg. No. Address District Tax Office Attached Documents 1. Residence Certificate issued by the Competent Authority of Beneficiary's Resident Country 2. Copy of Documents supporting Tax-Exempt Status (e.g. Agreement or Contract) I hereby confirm the above facts. Year Month Day (Korean) Chief of ( ) District Tax Office Chop * Irrespective of this confirmation of the submitted application, the chief of the district tax office can correct or determine taxes in accordance with relevant law if information in this application is found to be different from actual facts.

300 [ 292(2)] < , > ( 앞쪽 ) 유가증권양도소득에대하여 법인세조세조약에따른 소득세비과세 면제신청서

301 Form 29-2 (2) Gains from Transfer of Securities Beneficiary Payer Securities -Issued Corporation Application for Tax-Exemption on Non-Resident's Korean Source Income Provided under the Korea Tax Treaty Corporate Income Tax 1 Name 2 Resident(Business) Reg. No. 3 Address 4 Resident Country Individual Income Tax 5 Code for Resident Country 6 Name of Corporation (Korean) (English) 7 Name of Representative 8 Business Reg. No. 9 Address 10 Name of Corporation 11 Business Reg. No. 12 Address 13 Type of Income Listed Stocks Unlisted Stocks Bonds Other Processing Period Upon Submission 14 Account Number 15 Real Name Confirmed 16 Transfer Date 17 Transfer Quantity 18 Transfer Price 19 Acquisition Costs 20 Gains from Transfer Transfer Price 10% Gains from Transfer 25% Tax to be Withheld Tax Exempted Basis for Tax-Exemption Article ( ), Paragraph ( ), Subparagraph ( ) of the Tax Treaty between Korea and ( ) Tax-Exemption Period Year Month Day ~ Year Month Day I hereby submit an Application for Tax-Exemption on Non-Resident's Korean Source Income in accordance with Article 98-4 (or 156-2) of the Corporation Tax Law (or Income Tax Law) and Article (or 207-2) of its Enforcement Decree. Year Month Day To The Chief of ( Applicant ) District Tax Office (Signature or Chop) Agent Attached Documents Type of Agent Tax Agent Other Agent Name of Individual or Corporation Resident(Business) Reg. No. Address District Tax Office 1. Residence Certificate issued by the Competent Authority of Beneficiary's Resident Country 2. Copy of Securities Transfer Contract, Stock Sales Report or Notice confirming Stock Sales Reporting 3. Documents supporting Acquisition Costs 4. Copy of Documents supporting Tax-Exempt Status (e.g. Agreement or Contract) I hereby confirm the above facts. Year Month Day (Korean) Chief of ( ) Distract Tax Office Chop * Irrespective of confirmation of the submitted application, the chief of the district tax office can correct or determine taxes in accordance with relevant law if information in this application is found to be different from actual facts.

302 [ 292(3)] < , > ( 앞쪽 ) 근로소득에대하여 법인세조세조약에따른 소득세비과세 면제신청서처리기한즉시

303 Form 29-2 (3) Wage and Salaries Beneficiary Application for Tax-Exemption on Non-Resident's Korean Source Income Provided under the Korea Tax Treaty Corporate Income Tax Individual Income Tax 1 Name 2 Resident(Business) Reg. No. 3 Address Processing Period Upon Submission 4 Resident Country 5 Code for Resident Country 6 Name of Corporation (Korean) (English) Payer 7 Name of Representative 8 Business Reg. No. 9 Address 10 Type of Income Directors' Fee Artistes&Athletes Government Services Students Teachers Trainees Other 11 Classification 12 Purpose of Entry 13 Date of Entry 14 Date of Departure 15 Term of Contract 16 Contract Amount This Entry Last Entry 17 Date of Payment 18 Amount Paid 19 Tax Rate 20 Tax to be Withheld Tax Exempted Basis for Tax-Exemption Article ( ), Paragraph ( ), Subparagraph ( ) of the Tax Treaty between Korea and ( ) Tax-Exemption Period Year Month Day ~ Year Month Day I hereby submit an Application for Tax-Exemption on Non-Resident's Korean Source Income in accordance with Article 98-4 (or 156-2) of the Corporation Tax Law (or Income Tax Law) and Article (or 207-2) of its Enforcement Decree. Year Month Day To The Chief of ( Applicant ) District Tax Office (Signature or Chop) Type of Agent Tax Agent Other Agent Name of Individual or Corporation Agent Resident(Business) Reg. No. Address District Tax Office Attached - Documents 1. Residence Certificate issued by the Competent Authority of Beneficiary's Resident Country 2. Copy of Employment Contract, Certificate of Student Status, Certificate of Receipt of Grants 3. Copy of Documents supporting Tax-Exempt Status (e.g. Agreement or Contract) I hereby confirm the above facts. Year Month Date (Korean) Chief of ( ) Distract Tax Office Chop * Irrespective of confirmation of the submitted application, the chief of the district tax office can correct or determine taxes in accordance with relevant law if information in this application is found to be different from actual facts.

304 제 3 편 참고자료 1. 주요도시세무관서 2. 납세조합 3. 조세조약체결국현황 4. 외국인납세자를위한납세서비스

305 Part 3 Appendix 1. Tax Offices in Major Cities 2. Taxpayers Association 3. Treaties with Foreign Countries 4. Taxpayers Services for Foreign Taxpayer

306 1. 주요도시세무관서 ~

307 1. Tax Offices in Major Cities Name of Office Location TEL Jurisdiction Int'l Tax Resource Management Division of NTS NTS Customer Satisfaction Center 104 Susong-dong Jongno-gu, Seoul 824 Yeuksam-dong Gangnam-gu, Seoul ~8 Nationwide Nationwide Seoul RTO 104 Susong-dong Jongno-gu, Seoul DTOs in Seoul area Banpo DTO Dobong DTO Dongdaemun DTO Dongjak DTO Gangdong DTO Gangnam DTO Gangseo DTO Geumcheon DTO Guro DTO Bangbae 4-dong Seocho-gu, Seoul Mia 8-dong Gangbuk-gu, Seoul Cheongryangri 1-dong Dongdaemun-gu, Seoul 476 Singil 6-dong Yeongdeungpo-gu, Seoul Pungnap 2-dong, Songpa-gu, Seoul 45 Cheongdam-dong Gangnam-gu, Seoul 24 Yangpyeongdong 4-ga Yeongdeungpo-gu, Seoul Doksanbon-dong Geumcheon-gu, Seoul 23-1 Mullaedong 1-ga Yeongdeungpo-gu, Seoul Taxable Business in given Dong Area

308 1. 주요도시세무관서 ( 계속 ) l

309 1. Tax Offices in Major Cities(Continued) Name of Office Location TEL Jurisdiction Jongno DTO 58-8 Nagwon-dong Jongno-gu, Seoul Taxable Jungbu DTO 12-3 Namhak-dong Jung-gu, Seoul Business Mapo DTO Namdaemun DTO 43 Sinsu-dong Mapo-gu, Seoul 1 Jeodong 1-ga Jung-gu, Seoul in given Dong Area Nowon DTO 15 Changdong Dobong-gu, Seoul Samseong DTO 824 Yeuksam-dong Gangnam-gu, Seoul Seocho DTO 824 Yeuksam-dong Gangnam-gu, Seoul Seodaemun DTO 251 Hongje 3-dong Seodaemun-gu, Seoul Seongbuk DTO 3-2 Samseondong 3-ga Seongbuk-gu, Seoul Seongdong DTO 67-6 Songjeong-dong Seongdong-gu, Seoul Songpa DTO Pungnap 2-dong, Songpa-gu, Seoul Yangcheon DTO Sinjeong 6-dong, Yangcheon-gu, Seoul Yeoksam DTO 824 Yeuksam-dong Gangnam-gu, Seoul Yeongdeungpo DTO ga Dongsandong Yeongdeungpo-gu, Seoul Yongsan DTO , Hangangno 3-ga Yongsan-gu, Seoul

310 1. 주요도시세무관서 ( 계속 ) (031) ,, (042) , (062) , (053) , (051) ,,, 16

311 1. Tax Offices in Major Cities(Continued) Name of Office Location TEL Jurisdiction Jungbu RTO Pajang dong, Jangan-gu, Suwon (031) DTOs in Gyeonggi, Incheon & Gangwon Area Daejeon RTO Beop-dong Daedeok-gu, Daejeon (042) DTOs in Daejeon & Chungcheong Area Gwangju RTO Ssangchon-dong Seo-gu, Gwangju (062) DTOs in Gwangju & Jeolla Area Daegu RTO Chimsan 3-dong Buk-gu, Daegu (053) DTOs in Daegu & Gyeongbuk Area Busan RTO Yeonsan 9-dong Yeonje-gu, Busan (051) DTOs in Busan, Ulsan, Gyeongnam & Jeju Area

312 2. 납세조합 KM (031) (051) (051) (051) (055) (052)

313 2. Taxpayers Association United States Embassy Embassy of Japan Abroad Employment Global Ilsin Korea Sejongno, Jongno-gu, Seoul Junghak-dong, Jongno-gu, Seoul Euljiro 2-ga, Jung-gu, Seoul 5th Floor, 92 Galwol-dong, Yongsan-gu, Seoul 4th Fl. KM Bldg , Samsung-dong, Gangnam-gu, Seoul 1132, Doosanweeve Bldg. 58 Susong-dong, Jongno-gu, Seoul Namsan Nonhyeon-dong, Gangnam-gu, Seoul Seoul Regional Yeoeuido-dong, Yeongdeungpo-gu, Seoul Kangnam Seongbok-dong, Seongbuk-gu, Seoul Seyang th Fl. Jeokseon Hyundai Bldg. 80 Jeokseon-dong, Jongno-gu, Seoul Amkor Seongsu 2-ga, Seongdong-gu, Seoul KwangGyo (031) Maesanno 3-ga, Suwon, Kyunggi-do Korean Mariners Youngnam (051) (051) Jungangdong 4-ga, Jung-gu, Busan 541Ho Jayu Market Bldg., , Beomil-dong, Dong-gu, Busan DongJin (051) Choryang-dong, Dong-gu, Busan Geoje (055) Seilmempis Bldg., , Okpo, Geoje Ulsan (052) Happyland 3-702, Bangeo-dong, Dong-gu, Ulsan

314 3. 조세조약체결국현황

315 3. Treaties with Foreign Countries Countries Date of Entry into force Countries Date of Entry into Force Countries Aug., 2010 Date of Entry into Force Greece Bulgaria India South Africa Brazil Indonesia Netherlands Saudi Arabia Japan Nepal Sri Lanka China Norway Sweden Czech New Zealand Switzerland Chile Denmark Spain Kazakhstan Germany Slovakia Qatar Laos Slovenia Canada Russia Singapore Kuwait Rumania U.A.E Croatia Luxemburg Iceland Thailand Lithuania Ireland Turkey Malaysia Azerbaijan Tunisia Mexico Albania Pakistan Morocco Algeria Papua New Guinea Malta U. K Portugal Mongolia Oman Poland U. S. A Austria French Myanmar Jordan Finland Bangladesh Uzbekistan Philippines Venezuela Ukraine Hungary Vietnam Israel Australia Belgium Egypt Fiji Belarus Italy Iran Latvia Estonia

316 4. 외국인납세자를위한납세서비스. One-stop, ( 57, ) 24,,,,,,,,,,,,,,,,,,,,,, 2,,, 4,,, ( Help Desk Q&A/FAQ Foreign Taxpayer Advocate Service * : 7

317 4. Taxpayers Services for Foreign Taxpayers The NTS offers various tax services for foreign taxpayers to help them better handle their tax issues in Korea. Foreign Taxpayer Service Desk Foreign Taxpayer Service Desk is installed at the taxpayer service center of 45 district tax offices nationwide. It helps facilitate communication with foreigners visiting tax offices and provide one-stop tax services. Foreign Taxpayer Service Desk (at 57 DTOs as of Aug., 2010) Competent Regional Tax office District Tax Office No. of district tax offices Seoul Regional tax office All District tax offices 24 Jungbu Regional tax office Busan Regional tax office Seongnam, Suwon, Ansan, Uijeongbu, Incheon, Pyeongtaek, Siheung, Namincheon, Seoincheon, Goyang, Yongin, Bucheon, Icheon Busanjin, Suyeong, Changwon, Bukbusan, Ulsan, Dongulsan, Jeju, Tongyeong, Dongrae, Gimhae Daejeon Regional tax office Seodaejeon, Cheonan 2 Daegu Regional tax office Gumi, SeoDaegu, BukDaegu, NamDaegu, 4 Gwangju Regional tax office Mokpo, Seogwangju, Bukgwangju, Iksan 4 NTS English Website ( Q&A/FAQ and Foreign Taxpayer Advocate Service : the two services in the Help Desk corner enable foreigners to place tax inquires including tax difficulties online * Processing period : 7 business day.

318 Check Your Monthly Withholding Tax Year-end Tax Settlement Automatic Calculation Service for ( :, ) ( )

319 Check Your Monthly Withholding Tax : taxpayers may calculate expected amount of monthly withholding taxes. Automatic Calculation Service for Year-end Tax Settlement : taxpayers may calculate the expected amount of adjusted withholding taxes for the year-end tax settlement. English tax booklets and various Forms (e.g., Easy Guide for Foreigners Year-end Tax Settlement and Individual Income Tax and Benefit Guide for Foreigners) NTS English Assistance Hotline ( ) The Hotline offers foreigners tax advice in English over the phone, and is operated by the National Tax Service Customer Satisfaction Center.

320 The Main page of NTS English Website ( Screenshot of Help Desk ( Help Desk)

321

322 외국인세무상담사례집 발행일자 :2012 년 11 월 발행처 : 국세청 고객만족센터 집필 편집 : 서기관최남익서기관김영진세무조사관최경순 ( Tel: ) 본상담사례집은외국인납세자의이해를돕기위하여일반적인질문을토대로작성한해설서입니다. 구체적인개별사례에대한법적용은관련법조문을재확인하여적용하시기바랍니다. 본문의내용과현재세법 ( 해석포함 ) 상불일치가있으면, 현재세법을적용하기바랍니다.

323 Tax Guide for Foreign Taxpayers in Korea Issue Date : Nov., 2012 Publisher : Customer Satisfaction Center, National Tax Service Edited by : Director Choi, Nam-ik Deputy Director Kim, Young-jin Tax Inspector Choi, Koung-soon ( Tel ) *This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the publisher. This book is published to help foreigner to understand the Korean taxation based on general inquiries of foreigners. Applicability of tax law should be determined on a case-by-case basis. If any discrepancies are found between its contents and the current Korean Tax Law/Ruling, the latter shall prevail.