Tax System Related to Foreign Investment 1. In Korea, taxes are largely divided into two categories. Local Taxes Acquisition Tax, Registration Tax, License Tax, Resident Tax, Property Tax, Aggregate Land Tax, Automobile Tax, Farmland Tax, Butchery Tax, Tobacco Consumption Tax, Urban Planning Tax, Community Facilities Tax, Workshop Tax, Regional Development Tax, Excessively Increased Value of Land Tax 2. Tax A Corporation having its head office or its main office in Korea is liable to corporation tax applicable to the income of each business year Rates for corporation tax are calculated by a two-tier progressive method.
Foreign corporations pay on income of domestic origin only.
Income Tax Income tax is levied on individuals, not companies or organizations. An individual is taxed either as a resident or as a non-resident. A resident is an individual who either has a permanent Korean address or who has resided in Korea for over a year. Residents are taxed on income from both domestic and foreign sources. For non-residents, tax is levied on income of domestic origin.