Korea, Republic of
Foreign employees working in Korea may elect to have their employment income subject to a flat tax rate of 19% (rather than a progressive income tax rate with the highest marginal tax rate) for five years from the date they start working in Korea. This flat tax rate was supposed to apply for those who start to work in Korea by the end of December 2018. However, based on the recent tax reform, this flat tax rate can be elected for those who initially started to work in Korea by the end of December 2021.
Currently, 50% tax-exempt is allowed for wages received by a qualified foreign technician/engineer providing services in Korea to a domestic entity for five years from the date he starts to render services in Korea as far as he has started to work in Korea by no later than 31 December 2021. Under the recent tax reform, 70% tax-exempt treatment will be allowed for wages received by the above qualified expatriate, if he works in the categories of raw materials, parts and equipment, for the first three years out of the above five years as far as he has started to work in Korea on or after 1 January 2020, but no later than 31 December 2022.