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14 November
Thursday

Asia

Seoul to make city "more business friendly"

It is 19 percent flat tax for foreign employees

Photo: AMCHAM

/NOVOSTIVL/ Korea will maintain a flat income tax of 19 percent for foreign nationals working here for the next three years, regardless of their income, to make the nation more attractive in the eyes of multinational companies, Seoul mayor Park Won-soon said Monday.

Even though the Seoul Metropolitan Government (SMG) does not set the income tax rate, Park claimed that he played a key role in persuading the National Tax Service to keep the 19 percent flat rate.

In a luncheon meeting with members of the American Chamber of Commerce in Korea (AMCHAM), the mayor also said the local government is considering providing cash incentives to foreign companies and other benefits to make Seoul more business friendly.

"I remember AMCHAM Chairman of the Board of Governors Jeffrey Jones spoke about the possible side effects of abolishing the special provisions on taxation of foreign employees, such as the outflow of foreign talent," Park said in his speech in English to AMCHAM member company officials.

So far, foreign employees in Korea who have worked for less than five years have been subject to a 19 percent flat tax rate regardless of their income.

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