National Tax Service

An employee's wage and salary income subject to Korean income taxation is the amount received as payment for labor performed in Korea. It has two types, Class A income and Class B income.

Class A :

ⅰ) Wage, salary, remuneration, allowance, bonus, and any other allowance of a similar nature received in return for services
ⅱ) Income received as a bonus by a resolution of the stockholders or partners’ general meeting of a corporation, or a similar deliberative organ
ⅲ) Amount treated as bonus under the Corporation Tax Law
ⅳ) Income, other than retirement income, received due to retirement

Class B :

ⅰ) Wages and salaries received from a foreign agency or from the U.N. Forces in Korea (excluding the U.S. Armed Forces)
ⅱ) Wages and salaries received from a foreigner or foreign corporation outside Korea, excluding those claimed as a deductible expense for a Korean place of business of a non-resident or a foreign corporation
ⅲ) Income incurred from exercise of stock options granted by foreign associated company