| Taxation in Korea involves both national and local taxes. Taxes on purchases (e.g., Value Added Tax or Acquisition Tax) must usually be paid at the time of purchase. Other ongoing taxes are billed periodically to the taxpayer and must be paid by certain dates. |
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 Income Tax (, Sodeukse ) |
| For residents staying in Korea for 1 year or less, only their Korean income is taxed. Residents staying over 1 year are taxed on all sources of income. |
| Corporation Tax (, Beopinse) |
| A corporations profits are taxed according to the level of income. Up to 100 million won is taxed at 16%; above 100 million won is taxed at 28%. |
| Value Added Tax (, VAT- Buga Gachise) |
| In the value added process of production and distribution of goods and services, the end user pays a 10% tax of the final value. |
| Inheritance Tax (, Sangsokse) |
| Assets received from inheritance during the previous 12 months are taxed (calculated each August 1st and paid August 16-31). |
| Donation Tax (, Jeungyeose) |
| Assets received from donations during the previous 12 months are taxed (calculated each August 1st and paid August 16-31). |
| Special Excise Tax (, Teukbyeol Sobise ) |
| Luxury items are subject to a special consumption tax. |
| Education Tax (, Gyoyukse ) |
| The education tax is specifically earmarked to pay for ongoing education-related services and activities at the national and local levels. |
| Transportation Tax (, Gyotongse) |
| The transportation tax helps finance the expansion of roads and intercity railroads. |
| Special Tax for Rural Development (, Jiyeok Gaebalse ) |
| The Special Tax for Rural Development is charged to help the people who develop underground water for drinking (resale) and bathing. |
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| Acquisition Tax ( ,Chwideukse ) |
| Acquisition Tax is charged when people purchase real estate (land, buildings), vehicles, heavy machinery, timber, airplanes, and memberships for golf clubs or condominiums. |
| Registration Tax ( , Deungnokse) |
| Acquisition Tax is charged when people purchase real estate (land, buildings), vehicles, heavy machinery, timber, airplanes, and memberships for golf clubs or condominiums. |
| Property Tax (, Jaesanse ) |
| Taxes are charged for the possession or transfer of property (assessed each May 1st and paid June 16-30). |
| Aggregated Land Tax (, Jonghap Tojise ) |
| To control the excessive possession of land, the Aggregated Land Tax is imposed on capital gains from increases in land value (computed each June 1st and paid October 16-31). |
| Inhabitant Tax (, Juminse ) |
| Inhabitant Tax is the characteristics of membership fee of autonomous district's personnel organization. With the joining the self-governing administration of local autonomous district, therefore according to the rule that sharing the cost needed for that. This is the tax has the most characteristic tax as local tax. |
| Automobile Tax (,Jadongchase ) |
| The Automobile Tax is charged to registered automobile owners (calculated June 1st and paid twice a year: June 16-30, December 16-31). An education tax(30% of the automobile tax) is included with the tax. |
| License Tax (, Myeonheose ) |
| The License Tax is imposed when receiving various licenses (calculate June 1st and paid June 16-30). |
| Inhabitant Tax (, Juminse ) |
All purchases of products and services are subject to the national 10% Value Added Tax (VAT). Almost all stores and restaurants automatically include the VAT in the marked price. Generally, only larger hotels (and their restaurants) do not include the VAT in the price, adding it to the final bill. Employers should take care of income tax issues and help the foreign employee file an annual tax return. Most foreign residents will not have to worry much about taxes unless they own local property. Any taxes they are required to pay will be sent to them with a giro style bill that can be paid at a bank or post office.
Residents needing further information regarding taxation issues should contact the International Tax Division of the Ministry of Finance and Economy (Tel: 503-9228, Fax: 503-9229).
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AVehicle taxes are assessed semi-annually (June and December) and are based on the vehicle's engine size. Vehicle owners must pay several types of taxes. When purchased, the owner must pay registration, acquisition, and education taxes. A license tax (according to license type) must be paid once a year. Automobile taxes (according to engine size) must be paid twice each year (late June and late December). An education tax (30% of the automobile tax) is included with the tax and must be paid at the same time.
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When buying or selling real estate property, the buyer and seller are subject to various related taxes based on the selling price. The buyer pays an Acquisition Tax (2%), Registration Tax (3%), and Education Tax (20% of Registration Tax). The seller must pay a Transfer Income Tax (20-65% of any gains from the previous purchase price, with the amount depending on the amount of time the buyer owned the property).
When renting housing, the owner is responsible for all property-related taxes. Give any tax bills that come to the owner or the real estate agent acting as a go-between.
Note: The government can modify the amount of taxes imposed to increase or decrease housing turnover, depending on current economic conditions.
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Items brought into Korea can be subject to import duties or customs fees. Each person can bring a certain amount of items into Korea duty free. Persons bringing in more than the allowed number of items must pay import duties or dispose of the items. Items worth over $400 purchased outside Korea are also subject to import duties. (The $400 amount applies to the total value of all goods purchased abroad.)
Unaccompanied baggage, including items mailed to residents, can also be subject to import duties. Shipping fees are included when computing the value of a shipped item. Persons with unaccompanied baggage should fill out a second customs declaration form (describing the unaccompanied contents) when they enter the country and have it validated by the Customs officer. The second customs declaration must be given to the Customs house when clearing the unaccompanied baggage.
tems to be Re-exported
Non-residents bringing dutiable items into Korea but plan to take them out with them when they leave can be exempt from duties. The item(s) must be declared and a note will be placed in the owner's passport. The owner will have to pay the duty if the item is not in his or her possession when leaving the country.
Exemption for Goods Being Returned to Korea
If you leave with expensive items purchased in Korea and you plan to bring it back, declare the items on departure to avoid paying a duty when bringing them back into Korea.
For additional information, please contact the Passenger and Simplified Clearance Division at (042) 472-2183 (web site: http://www.customs.go.kr).
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