Hello Elvira, Korean tax laws are very difficult, aren't they? I file my taxes every year, but I forget how to file them every year because Korean taxes are so complex. First, I will answer your tax filing questions. Also, please refer to the information on types of businesses and taxes in Korea.

Determination of 'Resident' under Tax Law and Tax Obligations

The most important criterion is whether you are a "resident" or "non-resident" under Korean tax law. (Korean taxes are rarely related to visa status.) Let's first find out if you are a "resident" or "non-resident." The criteria presented by the National Tax Service and related laws (Income Tax Act Article 1-2, Enforcement Decree Articles 2 and 4) are as follows:

1. If you have a 'domicile' in Korea: Is your center of life in Korea?

The "domicile" referred to here is not simply your registered address. It is a substantial determination of whether your center of life is in Korea, by comprehensively considering the "objective facts of your living relationships." Simply put, the main criteria for the National Tax Service to consider your "domicile" to be in Korea are as follows: * Family members you support: Do your spouse and dependents reside with you in Korea? * Occupation: Do you have an occupation that requires you to continuously reside in Korea for more than 183 days? * Assets: Do you own significant assets in Korea? (Real estate, financial assets, etc.) If you entered Korea on an F-4 visa and reside in Korea with your family, engage in economic activities, or maintain a substantial lifestyle with assets in Korea, it is highly likely that your "domicile" will be considered to be in Korea. In particular, Article 2, Paragraph 3 of the Enforcement Decree of the Income Tax Act 'deems' you to have a domicile in Korea if you meet any of the following conditions, applying it as a strong criterion: 1. When your occupation is such that it can only be properly performed by staying in Korea for more than half a year 2. When you have family members living with you in Korea, and based on your occupation and asset status, you are recognized to continuously reside in Korea for more than 183 days To help you understand "When your occupation is such that it can only be properly performed by staying in Korea for more than half a year" more easily, here are some examples: * Applicable Cases (O): * Company employees formally hired by a Korean branch * Project managers or researchers contracted on a yearly basis * Teachers or professors who teach on a semester basis * (In your case) IT professionals employed by an overseas company but continuously working remotely with your center of life in Korea * Non-Applicable Cases (X): * Consultants who come to Korea for a short-term project lasting two weeks * Athletes or artists who visit Korea temporarily to attend a specific event * Overseas sales representatives who stay for a few days on business trips

2. If you have had a 'residence' for more than 183 days: Does your period of stay meet the criteria?

Key Point: 'Staying for more than 6 months' * The phrase "more than 183 days during one taxable period" means "the total number of days spent in Korea between January 1st and December 31st exceeds 183 days." * The place of stay does not have to be a house in your name. It includes places where you actually spend a significant period, such as long-term stays in officetels, hotels, or relatives' homes. How to calculate the dates: It's very simple * Count from the day after your arrival to the day of your departure from Korea.

Example: If you entered on April 10th and left on November 20th? April (from the 11th) + May + June + July + August + September + October + November (until the 20th) = A total of 224 days. This far exceeds 183 days, so you would be considered a 'resident' under tax law for that year.

The most important point: "Even short trips are included!" This is where many people get confused. * Situation: You are staying in Korea and briefly go on a trip abroad or for a short business trip. * Conclusion: It is highly likely that this period will also be included in your stay in Korea for calculation purposes.

Let me explain with an analogy. It's similar to how a homeroom teacher wouldn't say, "Oh, you're not a student in our class anymore" just because a student briefly went to the restroom. The National Tax Service looks at "Where is this person's center of life?" Even if you briefly leave, if your center of life is in Korea, you will be considered to be continuously residing in Korea.

If you stay for more than 6 months across two years? The period of stay continues even if the year changes.

Example: If you entered on September 1st, 2024, and stayed continuously until April 30th, 2025, without leaving Korea? * 2024: Stayed for 4 months (approx. 120 days). -> Since it's less than 183 days, you are a 'non-resident' for 2024. * 2025: Stayed for 4 months (approx. 120 days). Since you stayed for more than 183 consecutive days across both years, you will become a 'resident' under tax law starting from the second year, 2025. This means you must report your income earned from January 1st, 2025, as a resident.

In short, as Elvira, who holds an F-4 visa, you are "very, very, very" likely to be considered a "resident." Now, shall we learn about tax calculation? The following table shows the tax rates for "Comprehensive Income Tax."

Comprehensive Income Tax Rates (As of 2025)

Annual Income (in ten thousand KRW)	Tax Rate (%)
Up to 14 million KRW	6
Up to 50 million KRW	15
Up to 88 million KRW	24
Up to 150 million KRW	35
Up to 300 million KRW	38
Up to 500 million KRW	40
Up to 1 billion KRW	42
Over 1 billion KRW	45

Comprehensive income tax is taxes on "total combined income, including earned income, business income, and other income." In other words, if you "earned money," it is "income." For your reference, Elvira, withholding tax (3.3%) is rarely withheld directly overseas, so you may need to file and settle it yourself. (Overseas entities seldom withhold taxes 😭) A pro-tip for Elvira after reading this far!

Tax Exemption for Short-Term Resident Foreigners (The '5-Year Rule')👍

The Income Tax Act provides special regulations for foreigners who reside in Korea but whose period of stay is not long.

Who is eligible? (That's you)

First, you must be considered a "resident" under Korean tax law. (It's highly probable that Elvira is a "resident".) And among those "residents," foreigners who meet the following conditions are considered "short-term residents." Foreigners whose total period of having a domicile or residence in Korea during the past 10 years is 5 years or less

What are the benefits? If recognized as a "short-term resident," the taxation method for income varies depending on the source of income. * Domestic Source Income (Income earned in Korea): * It is 100% taxable. * Income generated in Korea, such as income from freelance activities in Korea or salaries from Korean companies, must be declared and taxed in Korea in full, regardless of this exemption. * Foreign Source Income (Income earned abroad): * This is where the '5-year rule' exemption applies. * Among income generated abroad, only the amounts that fall under the following two cases are subject to Korean taxation: 1. When paid in Korea 2. When remitted to Korea

Applying it to your situation

* Situation: You hold an F-4 visa, are a "resident" in Korea (stayed 5 years or less), work remotely for an overseas IT company (freelancer), and partially remit your salary to Korea. * Nature of Income: Since it is income received from an overseas company, it is considered "foreign source income." * Application: * If your total salary is 100 million KRW, and you remit 30 million KRW of it to Korea, the taxable income in Korea will be the remitted 30 million KRW. * If the remaining 70 million KRW is kept in your overseas account, that amount will be excluded from Korean taxation. For reference, this does not apply at all to 'income earned in Korea', and the basic principle of taxation is based on the 'income generated', not the 'remitted amount'. Therefore, if you are a freelancer with an F-4 visa and have stayed for 5 years or less, you must report your Comprehensive Income Tax annually in May, including the amount remitted to Korea from income received from overseas companies and any other income generated within Korea.