Change in the Period of Applying the Flat Tax Rate(20.9%) for Foreign Workers

As of January 1, 2023, the flat tax rate[20.9%] application period for foreign workers has been extended from 5 years to 20 years
from the start date of work in Korea.
(Article 18-2 of the Restriction of Special Taxation Act)

Examples of the period of applying the flat tax rate (As of January 1, 2023)

1. Working in Korea for less than five years
    e.g., started working in Korea from 2021 -> applying Flat Rate until 2040.

2. Working in Korea for more than five years (until 2022, the 5-year rule applies)
    e.g., started working in Korea from 2016 -> applying flat rate until 2035
    but not applicable for 2021 and 2022
3. Working in Korea after 2023
    e.g., starts working in 2023 -> applying Flat Rate until 2042

Change in the Tax Credit Limit for Taxpayers’ Association

As of 2022, the government has adjusted the tax credit limit for taxpayers’ association from 5% to maximum of 1 million won per year.
But, 5% is applied if the tax credit is less than KRW 1 million.