A foreign resident with global income should file for a global income tax return

• A foreign resident with global income in 2017 must file for a global income tax return to the tax office in his/her tax payment (address) jurisdiction by May 31, just as a Korean resident would.
  * Global income: Interest income, dividend income, business income (income from lease of real estate), wage & salary income, pension income, other income
• Non-residents must also file for a final tax return on global income for domestic-source income if he/she has a business establishment in Korea or has real estate income from Korea.
  * A ‘resident’ refers to an individual who has a domicile in Korea or has had a place of residence in Korea for 183 days or longer. A ‘non-resident’ is an individual who is not defined as a resident.
• If a foreigner qualifies as a resident of Korea, he/she should report all income, not only incurred in Korea, but also from other countries as well.
  - However, if the total period of having a domicile or place of residence in Korea is five years or less during the 10-year period from the last day of the relevant taxable period, a foreigner is only obligated to report income paid in Korea or remitted to Korea.
• A non-resident only has tax obligations on domestic-source income.

A wage-earner who did not complete a year-end tax settlement may file for a final tax return on global income

• A non-resident with only an earned income must complete a year-end tax settlement, just as a Korean resident would. If not, he/she must file a final tax return on global income.
• If a foreigner provides labor in Korea and receives income from overseas, it is convenient to complete a year-end tax settlement through a taxpayers association. If not, a final tax return on global income should be filed and paid during the filing period.

There is a penalty tax for under-filing and under-payment of income tax

• An amount equivalent to 20% of the calculated tax (40% in the case of false bookkeeping, collection of false documentary evidence, etc.) can be imposed as a penalty tax for non-and-under filing.
• A penalty tax of 10.95% of the unpaid tax amount (annual percentage rate) for unfaithful payment will be imposed.

Period for filing and payment (or refund) of global income tax

• The due date for filing and paying global income tax is May 31, 2018.
  * If the amount of tax to be paid is over 20 million won, 50% of the tax can be paid in installments within two months after the due date. If the amount of tax payable exceeds 10 million won, the amount in excess can be paid in installments over the same two-month period.
• Global income tax refunds are remitted to the bank account (the newly-opened account indicated fortax refunds of 20 million won or more) indicated on the final tax return form on or after June 30, 2018.
  * Remittance cannot be made to foreign bank accounts such as the Bank of China.

How to file and pay global income tax

• Global income tax should be filed and paid to the tax office in the taxpayer’s jurisdiction, but foreigners can file and pay by visiting the nearest tax office with his/her alien registration card.
• taxpayers can use the three-person calling service (available in 20 languages including English) provided by the Immigration Contact Center (call 1345). Please notify a tax office employee for interpretation assistance.
  * Call 1345-0-# or 1588-5644-1 (extension no. - Japanese: 2, Chinese: 3)
• Instead of visiting the tax office in person, taxpayers can send tax return forms to the tax office in the taxpayer’s jurisdiction by mail, or file electronically by accessing the Hometax system.
  * The Hometax system (www.hometax.go.kr) is only available in Korean.

• If a resident becomes a non-resident due to departure from Korea, he/she is responsible to file income tax from January 1 to the date of departure, and all tax returns must be filed the day before the date of departure.
• Taxpayers can make their payment by filling out a tax form at the nearest bank or post office, or by using the electronic tax payment system.

The electronic tax payment system allows taxpayers to pay you're their taxes via online banking or with a credit card without having to visit a bank or post office. Account transfer using online banking or phone banking (ARS) can be used. Tax payment can also be made through the Hometax system.