01 August 2016 Korea extends income tax withholding obligation for foreign workers The Korean Ministry of Strategy and Finance has released an enforcement decree that defines the Korean entities who will be required to act as withholding agents when paying compensation to a hiring foreign entity with no permanent establishment in Korea, and outlines the associated withholding procedures and applicable forms. The new withholding obligation is effective for all payments made on or after July 1, 2016 by a user Korean entity that falls under the definition provided and that pays compensation for services rendered by dispatched employees of the foreign entity, pursuant to a dispatch agreement. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-1311 |
