- Flat Tax 19% is extended to 2023.
- 50% Tax Cut for foreign ENGINEERS is also extended to 2023.
Q: Hi Christie
Quick question on the Korean flat tax rate option for foreigners. What is the current regulation on the use of the 19% rate option? My husband makes about 180 million a year and was told he can no longer use the 19% rate. I thought I’d ask a trusted source.
A: Recently, the flat tax rate option is extended to Dec 31, 2023. You may use this option only for the first 5years of your salary income. A 50% tax cut for a foreign ENGINEER is also effective until the year 2023.
Anyone who wishes to obtain a tax reduction under paragraph (1) shall file an application for tax reduction, as prescribed by Presidential Decree.
- Simple calculataion:
- If your yearly salary income is 180,000,000won, your tax is 39,561,500won with ordinary tax rate (average tax rate being 22%), while your tax is 34,200,000 won with 19% Flat tax rate, which makes over 5m won difference.
#flattax #taxrebate #taxcredit #taxinkorea #taxforforeigner