Planning an extended stay in South Korea? Whether you are drawn by its dynamic cities, career prospects, or rich culture, understanding your potential tax obligations is crucial. Here's what you need to know:
In South Korea, you're generally considered a tax resident if you stay in the country for 183 days or more within a calendar year. This status subjects you to taxation on your worldwide income, not just income earned in South Korea. For digital nomads and long-term visitors, this 183-day threshold is pivotal; exceeding it could make your global income taxable in South Korea.
Acquiring or renting a home, or receiving accommodation from an employer in South Korea, can establish a domicile, potentially making you a tax resident from your arrival date, regardless of the 183-day rule.
Any work performed in South Korea, irrespective of duration, may trigger tax obligations. While there's no specific "10-day rule," it's important to be aware of this when planning short-term work assignments.
If you reside elsewhere but earn income from South Korean sources, you may face limited tax liability in South Korea, meaning taxation only on your South Korean-sourced income without full tax residency status.
Accurately tracking your days in South Korea is essential to avoid unintentional tax residency. Consider using apps like Pebbles to monitor your time spent in different countries, ensuring compliance with South Korean tax laws.
South Korea's tax residency rules require careful attention from long-term visitors. Understanding the 183-day rule, recognizing how establishing a domicile affects your status, and diligently monitoring your time in the country are key to making informed decisions about your stay. Consulting with a tax professional specializing in international taxation is advisable before making significant moves.
Author
Pebbles
Published
January 16, 2025
