Filing of 2016 annual individual income tax return (due on May 31, 2017)

Korean citizens and foreigners who are considered to be residents for Korean tax purposes are subject to taxation on worldwide income derived from sources both inside and outside of Korea.  The income includes annual income [employment (earned) income, business profits, pension, dividend, interest, and other income], severance pay, and capital gains.

A foreigner, who is a tax resident of Korea and has his address or abode in Korea not to exceed 5 years in aggregate during the past 10 years from the end of the concerned tax year, his/her foreign source income earned from January 1, 2009 shall be taxed in Korea only if such income is paid in Korea or such income is remitted into Korea.

Taxpayers having more than one source of income are required to file an annual income tax return for the year and pay taxes due on such income on or before May 31 of the following year, or prior to permanently leaving Korea.

The filing of 2016 annual individual income tax return is coming due on May 31, 2017 together with necessary tax payments.