Q: Hi Christie
We have a Canadian candidate looking to come to Korea to work for my company in Daegu. (Foreign Direct Investment corporation)
He wants to receive KRW200m base AFTER tax is paid. He will also get a discretionary bonus.
What should we advise him?
Also, does he qualify for foreigner 19% tax / how does he ensure that is applied
Also for the 19% foreigner tax does he need to join the company by a certain date such as by 31 Dec 2018 (heard a rumor foreigner tax 19% is ending?) ….if he joins Jan 1st is it too late
1) When all the information for the salary calculation (Number of dependents, other benefits etc.) is ready, we can let you know how much the gross salary should be to make the “net salary” (After Tax salary) KRW200m.
2) If he is a foreigner (non-Korean), 19% flat tax can be applied.
However, it is only when he is enrolled and the application is made by December 2018.
Tax revision for 2019 is not finalized /announced yet.
(I made a call to National Tax Service this morning but their reply was that they have no idea yet)
3) However, for the people who applied for flat tax rate before Dec 31/2018 can still enjoy the 5year 19% flat tax rate treatment if he/she meets other qualifications.