Filing taxes in South Korea can be complex, especially for foreigners residing in Ulsan. This guide provides detailed, up-to-date information to assist you through the process.

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Understanding Tax Filing in South Korea

In South Korea, both residents and non-residents are subject to income tax. Residents are taxed on worldwide income, while non-residents are taxed only on Korean-sourced income. Residency is determined by residing in Korea for 183 days or more within a tax year.

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Tax Filing Deadlines

• Year-End Tax Settlement: Employers typically conduct this for their employees between January 25 and February 10 of the following year. This process reconciles any tax discrepancies from the previous year.
• Annual Tax Return: If additional income exists or if you’re self-employed, you must file an annual tax return by May 31 of the following year. Taxes owed should be paid by this date.

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Filing Taxes Online via Hometax

The National Tax Service (NTS) offers an online platform called Hometax for tax filings. While primarily in Korean, it provides a convenient way to file taxes.

Steps to File Online:

1. Access Hometax: Visit the Hometax website.
2. Log In: You’ll need a Korean digital certificate (공인인증서) to log in. If you don’t have one, you can obtain it through your bank or a certified authority.
3. Navigate to Tax Filing: Once logged in, select “종합소득세 신고” (Comprehensive Income Tax Return).
4. Complete the Form: Follow the on-screen instructions to fill out the necessary information. You may need assistance from a Korean-speaking individual if you’re not proficient in the language.
5. Submit: After completing the form, submit it electronically. You’ll receive a confirmation upon successful submission.

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Filing Taxes at the Ulsan Tax Office

If you prefer in-person assistance, you can visit the Ulsan Tax Office.

• Location: Ulsan Tax Office, Nam-gu, Galbat-ro 49, Samsan-dong 1632-1, Ulsan.
• Contact: Phone: 052-259-0200

How to File in Person:

1. Prepare Necessary Documents:
   • Alien Registration Card (ARC)
   • Bank Account Information (for any potential refunds)
   • Tax Notification Letter (if you’ve received one)
2. Visit the Tax Office:
   • Address: Ulsan Tax Office, Nam-gu, Galbat-ro 49, Samsan-dong 1632-1, Ulsan.
   • Directions: The office is near the Samsan-dong Emart.
3. Process:
   • Enter the Building: Follow the signage to the tax filing area.
   • Obtain a Queue Number: Present your documents to the attendant to receive a number.
   • Consult with a Tax Officer: When your number is called, proceed to the designated desk. The officer will assist in filing your taxes.
   • Language Assistance: English proficiency among staff varies. It’s advisable to bring a Korean-speaking friend or colleague if you’re not fluent in Korean.

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Key Updates for 2024

1. Tax Exemption Limit Raised for Childbirth and Childcare Allowance
   • The limit on childbirth and childcare allowance, which is tax-free from earned income and religious income, has been raised to less than 200,000 won per month (formerly 100,000 won per month).
2. Expansion of Child Tax Credit and Grandchildren Deductions
   • 350,000 won for two children (previously 300,000 won).
   • 350,000 won per year for more than three children and 300,000 won per year for each person exceeding two children.
   • Inclusion of grandchildren to the deduction target.
3. Expansion of Monthly Tax Credit
   • The income standard subject to monthly tax credit has been raised to 80 million won in total salary (comprehensive income of 70 million won).
   • The monthly tax deduction limit has been increased to 10 million won (7.5 million won before).
4. Extension of Application Deadline for Flat Tax Rate for Foreign Employees
   • The deadline for applying the single tax rate for foreign employees has been extended to December 31, 2026 (formerly December 31, 2023).
5. Gains on Private Housing for Foreign Employees
   • Gains on private housing provision of foreign employees subject to the special tax rate are excluded from earned income.
6. Exclusion of Foreign Engineers and Employees
   • Expanded the timing of determining the special relationship to the working period (end date of the previous tax year).

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Additional Considerations

• Professional Assistance: For complex tax situations or if you believe you’re overpaying, consulting a Korean tax accountant is recommended. They can provide personalized advice and ensure accurate filings. Here is one company that offers service in English – Tax in Korea
• Avoiding Penalties: Ensure all filings and payments are completed by the deadlines to avoid penalties. Late filings can incur a penalty of 20% of the unpaid tax.

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Useful Resources

• National Tax Service English Website: Provides tax information and resources in English.
• English Manual for the 2024 Year-End Tax settlement: This is the most up-to-date (year 2025) information from the NTS.
• Just Landed Guide: Another resource for understanding income tax in South Korea.
• SeoulZ – A decent and complete guide to filing your taxes in Korea.

By following this guide, you can navigate the tax filing process in Ulsan more confidently. Remember to adhere to deadlines and seek professional assistance when necessary to ensure compliance with Korean tax laws.