National Tax Service

For Korean tax issues. If you can't solve your question by looking at their website (or Korean website), you can call or e-mail their Help Desk.

 

Tax-free Agreements

  • Foreign engineers can get a 50% exemption of income tax, for their first two years in Korea. For more info, law.go.kr has the English-language text of the tax agreement.

  • Public school native English teachers (E-2 visas) may be exempt from paying income tax for their first 2 years in Korea, depending on their country of residency. You must obtain specific tax documents to submit to your school, who will then submit your paperwork to Korea's National Tax Service. If you have already lived in Korea for a year and did not teach in a public school, but will now teach in a public school for your second year - you only qualify for one year of tax exemption. The 2-year clock starts ticking as soon as your first contract starts.

    • Eligible Not Eligible

      Australia

      New Zealand

      South Africa

      United Kingdom

      USA

      Canada

      Ireland

 

US citizens and residents: The IRS, and tax on your worldwide income

The worldwide income of American citizens and resident aliens is subject to tax by the US Government. You are required to file your taxes while living and working outside the US, even if you have not been on American soil or earned any American money. Read the Taxpayers Living Abroad section on the IRS website for further information.

You must file your Federal tax return. Depending on your most recent US state of residence, you may or may not have to file a State tax return.

Be aware of the Foreign Earned Income Exclusion. As of 2015, taxes must be paid on all earnings above USD 100,800. For the 2015 tax year, if your foreign income is less than USD 100,800, you do not have to pay any taxes. Anything over that amount will be taxed. Check the current income threshold at the IRS website's section on Foreign Earned Income Exclusion.

If your income is beneath a certain number, you qualify to file your taxes for free, via the Free File service of your choice.

Add tags