A Residency Certificate or Residence Certificate is a document that proves a person is a primary resident of a certain country. In the case of living and working in South Korea, a Residency Certificate can exempt individuals from being double taxed while teaching at a public school in Korea.
Which Countries are Eligible for Korean Tax Exemption?
Citizens of the following countries are eligible to not pay income tax in Korea by providing proof of a Residency Certificate:
What if I Don’t Work for a Public School?
Unfortunately the benefit is only applicable to those who are public school teachers and therefore employed by the government. Those that work for private institutions and after-school programs are not eligible.
How Long Will I Be Exempt from Being Taxed?
Individuals that possess a Residency Certificate and submit it to their school will be exempt from income tax in Korea for their first 2 years in Korea only. Those that worked for their first year at a hagwon or private school and then transfer to a public school, will only be able to claim 1 year of tax exemption with a valid Residency Certificate. Those that taught at a private institute or private school for 2 years or more in Korea and then transferred to a public school will not be able to claim any period of tax exemption.
What is the Average Income Tax Rate Without a Residency Certificate?
An income tax of approximately 3.3% will be deducted from your salary.
How Can I Apply for a Residency Certificate?
Those that wish to apply for a Residence Certificate will need contact their country’s appropriate governing tax office. Please consult the following list to find out more information regarding your specific situation.
US Citizens – IRS Official Website | Form 6166 – Certification of U.S Tax Residency
UK Citizens – HMRC Official Website | Tax on Foreign Income
SA Citizens – SARS Official Website | Tax & Immigration
AUS Citizens – ATO Official Website | International Tax for Individuals
NZ Citizens – IRD Official Website | Tax Residency and Status
IRE Citizens – ITC Official Website | Irish Tax & Customs
How Do I Submit My Residency Certificate to Korea?
To obtain tax exemption while in South Korea, teachers will need to submit their Residency Certificate to their school’s administrative office at the beginning of the contract (before the first salary is paid). The worker in charge of taxation will then submit it to the appropriate governing tax office.
Individuals that plan to stay in Korea more than one year (with the possibility of transferring to another school after the first year), it is recommended that you apply for two residency certificate copies. Once you receive the residency certificate, it also advised to make a copy of the original(s) and keep it with you in the event the school may misplace the certificate after submission.
Featured Image Courtesy of JD Hancock and the Creative Commons
Does the US residency certifate work for 2 years or does the resident have to apply for and submit a residency certificate each of the 2 years?
Hi Luc,
Usually, this is one-time submission. However, Korean tax office can request a second copy for the following year if they feel it is necessary.
Am I still eligible for a tax exempt status if I’ve worked in Korea in the past and I return to work in Korea again?
Hi Jarrod,
You are not eligible for a tax-exempt status if you ever get exempted previously.
Hi – do I need tax records from my home country from the previous year? I was living and paying taxes in another country for 2 years. (I’m American)
Hi Melissa,
You need to apply residency certificate from your home country. You can get free income tax for the first two years.
Hi Melissa,
You just need to obtain most recent year of tax records. 🙂
[…] As an American, I filed for the U.S, resident tax exemption granted to US citizens in South Korea. This tax exemption is good for up to two years and means I’m not taxed the Korean income tax from my paycheck! To learn how to become eligible, check out this article! […]
For UK citizens, there is literally no point in doing this, since it would mean that one would have to pay UK tax instead of Korean tax, and the UK tax is MUCH higher. As someone who has worked for EPIK before, and is preparing to do so again, please heed my advice and just pay the Korean tax. 🙂
If I came to Korea for a year, had my tax exemption, left for 3 months then came back to a different public school? Is my exemption valid for a year or the remaining 9 months?
I started in the fall of 2016 with the 2 year tax exemption. Does this mean it expires the fall 2018?
Thanks in advance.
You can have only 2 years income tax exemption so you have to pay income taxes after that.
Hi,
I submitted my certificate of residency to my school before the first pay period. We are now approaching the second pay period, and I was told that my school’s administration office is unsure of what to do with the document? Any ideas here?
Thanks~
[…] if you are a US citizen you are exempt the first two years. But you will need to hand in the requisite documentation. If you’ve been in Korea more than two years, you will have to file taxes. You can usually […]
I am a U.S. citizen. If I file the residency certification am I still eligible for Form 2555: Foreign Earned Income?
Can someone please guide how to take Tax residence Certificate from Korea Government asking for Client who is Non resident in India. For benefit of treaty he needs Korea Tax Residency Certificate.
I am a foreigner who opens a branch of his company in Seoul, tell me, what taxes will I have to pay?
This link to the National Tax service will help you.
https://www.nts.go.kr/eng/help/help_53_2018.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3
Hello. Is it possible to submit the tax residence certificate to my school in Korea after my contract has already finished?
Hello Kevin,
Your tax residence certificate will not be effective if you completed the contract. You have to apply for the new school.
Also, we would like to remind you that free income tax only applies to the public sector.
Hi,
Please help since I am a bit confused about where I should get my Residence Certificate for Tax Exemption in Korea.
I am Vietnamese but I have never been working in Vietnam. I did my PhD in Belgium from 2009 to 2015. However, since my PhD graduation is delayed, so from early 2014 to the end of 2015, I was employed as Researcher by my professor. Since 2016 until now (a bit more than 4 years), I have been working as Postdoc in South Korea.
Today I got an email from my University that I can apply for Tax Exemption for 2015 and 2016. So I need to submit the Residence Certificate. And they said I should get Residence Certificate from tax office in Belgium. Is this true? And I have been away from Belgium for more than 4 years, how to get that Residence Certificate then?
Please advise me. Thanks a lot guys.
Vi
It is Vi again. There was a small mistake in above message. Today I got an email from my University that I can apply for Tax Exemption for 2016 and 2017 (not 2015 and 2016). Sorry !
Thanks.
Vi
Hi all,
I have a 6166 form that is joint for my wife and I. It seems that the local tax office does not want to accept it. They said the reason is that everyone has to pay taxes in Korea, so there is no avoiding it. When pushed, they said that they would not take a joint form. I have six copies, so that should not really be a problem, of using one copy per person. Any advice? My local office is in Seoul at the Yongsan-gu.
Thanks all,
Travis
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Hello,
Does it have to be your first two years ever in Korea? I worked in Korea on an E-2 Visa for 6.5 years at private schools. Then, I left for three years. I just came back on an F-6 visa 3 months ago, and I got a job at a public university. Could my employer apply for the tax exemption since I’m “new” in the country on a new visa, or would the government disqualify me for having worked in Korea before? Please help!
Thanks
Hello,
I taught English on an E-2 visa for private hagwons from 2011-2018. I left Korea for three years, but I just came back on an F-6 visa and I got a job at a public university. Since I’m here on a new visa, can I get the tax exemption for 2021-2022, or would the government count 2011-2012 as my first 2 years? Please help!
Eric
[…] Korean Tax Exempt Letter if working and from the US, UK, SA, Aus, and NZ […]