South Korea Tax Residency Guide

183-Day Physical Presence Test

• Primary rule — 183 days: An individual is classified as a Korean tax resident if they are physically present in Korea for 183 days or more in any 365-day period. The 183 days need NOT be consecutive — any day of physical presence counts. The day of arrival and departure both count as days of presence.
• Resident — worldwide taxation: A resident (거주자) is subject to the Korean income tax on the worldwide income — the income from sources both inside and outside Korea.
• Non-resident — limited taxation: A non-resident (비거주자) is subject to the Korean income tax only on the Korean-source income (국내원천소득). There is no requirement to file a global income tax return.
• Counting method: Korea uses the "physical presence" method for the 183-day test. Any part of a day counts as a full day. The 365-day window is a "rolling" window — the test may be applied at any time during the tax year.

For example: a foreign professional who arrives in Korea on 1 January and departs on 30 June (181 days) is not a resident. If the departure is on 2 July (183 days), the individual is a resident for the entire tax year.

Domestic Domicile (주소) Concept

• Legal definition: Under Article 1-2 of the Korean Income Tax Act (소득세법), a "domicile" (주소) is defined as the main residence that serves as the centre of the individual's daily life. The domicile is determined by the objective facts — not merely by the registration (주민등록) or the visa status.
• Domicile vs. presence: Even if an individual stays in Korea for fewer than 183 days, they may still be treated as a resident if they have a domestic domicile. The factors include: owning or leasing a home in Korea, having the family residing in Korea, maintaining a Korean bank account and the credit cards, and holding a long-term visa (e.g., E-7, F-2, F-5, F-6).
• Intent: The domicile test considers the individual's intention to live in Korea permanently or for a prolonged period. If the individual registers the residence (주민등록) and lists the Korean address as the main address, the NTS (국세청) will likely deem the domicile to be in Korea.
• Loss of domicile: The Korean domicile is lost when the individual leaves Korea with no intention to return — the cancellation of the 주민등록, the sale of the Korean home, and the relocation of the family abroad are the key indicators.

For example: a foreign executive holding an F-5 permanent resident visa, with a leased apartment in Seoul and a family living in Korea, is likely deemed a resident even if the travel schedule results in fewer than 183 days of physical presence in a given year.

Place of Livelihood — 생활근거지

• Secondary criterion: If the domicile (주소) is unclear, the National Tax Service (NTS) may examine the place of livelihood (생활근거지) — the location where the individual's economic and social life is centred.
• Factors: The NTS considers: the location of the individual's employment or business; the location of the individual's immediate family (spouse and children); the location of the individual's primary financial assets and bank accounts; the location of the social and professional network; and the location of the club memberships, the religious affiliations, and the volunteer activities.
• Multiple residences: If the individual maintains residences in multiple countries, the place of livelihood is determined by a "centre of vital interests" (중대한 이해관계의 중심지) analysis — similar to the OECD Model Tax Convention tie-breaker.

For example: an individual who works in Seoul from Monday to Friday and returns to a family home in Japan every weekend — the place of livelihood is likely Korea (employment, daily life) despite the regular cross-border travel.

DTA Tie-Breaker Rules

• Tie-breaker sequence: When an individual is a resident of both Korea and another country under the respective domestic laws, the applicable DTA provides the tie-breaker rules in this order: (1) the permanent home (항구적 주거); (2) the centre of vital interests (중대한 이해관계의 중심지); (3) the habitual abode (일상적 거소); (4) the nationality (국적); and (5) the mutual agreement procedure (상호합의절차) between the competent authorities.
• Permanent home: The individual is treated as a resident of the country where the individual has a permanent home available. If the individual has a permanent home in both countries, the centre of vital interests is examined.
• Mutual agreement procedure (MAP): If all of the above tests fail to resolve the dual residency, the competent authorities of both countries may resolve the case through the MAP under the DTA.

For example: a dual US-Korean citizen who works for a Korean company and lives in Seoul with a family but also owns a home in Los Angeles — under the Korea-US DTA tie-breaker, the centre of vital interests (employment, family residence, daily life in Seoul) likely determines the Korean tax residency.

FAQs

What is the difference between the 'resident' under the Income Tax Act and the 'resident' under the Immigration Act?

The tax residency under the Income Tax Act (소득세법) is determined by the 183-day presence and the domicile test. The immigration residency under the Immigration Act (출입국관리법) is determined by the visa status. The two are independent — an individual may hold a permanent resident visa (F-5) under the immigration law but be a non-resident for the tax purposes if the individual stays abroad for more than 183 days and has no Korean domicile.

Does the Korean tax year start from the date of arrival?

No. The Korean tax year is the calendar year (1 January to 31 December). The tax residency is determined for the full tax year. If an individual arrives in Korea on 1 July and stays for 183 days by 31 December, the individual is a resident for the entire tax year and must file a global income tax return by May of the following year.

Can I be a Korean resident and a US resident at the same time?

Under the domestic laws of both countries, yes — a dual resident is possible. However, the Korea-US DTA provides the tie-breaker rules to assign the tax residency to one country for the DTA purposes. The individual may still be treated as a resident of both countries under the domestic laws but is entitled to the DTA benefits only in the country of the residence under the tie-breaker.