[
THE INVESTOR] The special income tax rate for foreign nationals will be extended until the end of 2019, but raised by 2 percentage points, the government announced on July 28.
According to the tax revision announced by the Ministry of Strategy and Finance, the special income tax rate for foreigners will remain in place until the end of 2019 at the raised rate of 19 percent.
Foreign nationals working in Korea can choose to be taxed at the special rate for five years from the date their Korea-based employment begins. Eligible individuals can also choose to be taxed at the usual rates, ranging from 6 percent to 38 percent, and receive tax breaks, tax cuts and other benefits.
Although the measure was implemented to attract qualified foreign talent, it has been criticized for discriminating against Korean workers.
By Choi He-suk (
cheesuk@heraldcorp.com)
