FAQ

Please give me information on overseas allowance for expatriates?

Poster 운영자
Date2020.11.11.
Read202

In general, overseas allowances that are paid to resident and non-resident expatriate employees in Korea are subject to Korean income tax. This includes cost-of-living differentials, housing costs, home leave, and education allowances. However, you may be applied to the special taxation treatment to compensate for foreign employees who may incur additional expenses for working abroad. From 2004, foreign employees may choose either (ⅰ) or (ⅱ) when he files year-end tax settlement.

ⅰ) Separate taxation of wage and salary income applying 17% flat rate
- In this case, exemption, deduction and reduction will not be allowed and foreign employees must submit application form to be applied 17% flat rate
ⅱ) Exemption of 30% of wage and salary income on income tax
- Monthly withholding after subtracting the above amount
- Exemption, deduction and reduction will be allowed at the year-end tax settlement after subtracting above amount

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