The Taxpayer Association authorized by the Korean Government for income tax return

What is Taxpayer Association

In case a resident or non-resident has income from a company outside Korea(south) he/she shall join a taxpayer association to clear income tax liability, whereas he/she has wage & salary income from a company inside Korea shall file his/her tax return and pay the tax to the government through the company he/she works for.

The taxpayer association would be the tax-withholder and pay collected taxes to the National Tax Office monthly. As for a foreigner holding D-type(D7-D9), F-type visa is a resident who has to file income tax return even for one day work in Korea. Also a foreigner holding C-type visa(non-resident) who works longer than 183 days(or 6 months) during two financial years in Korea has income tax liability in Korea. Please check how to join Orange if you haven't joined an association.

Benefits

If a taxpayer pays income tax using Progressive rate tax, he/she gets benefits, 5% tax deduction of the computed income tax.(so called Taxpayer Association Deduction). Flat tax doesn't allow any deductions.

Also, Korea has income tax treaties with a number of foreign countries desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. Once a foreign worker paid income tax in Korea, he/she will get tax deductions for the same amount taxes paid in Korea, or get tax exemption.

View about income tax more