Thecondition for resident and nonresident

                                                                              19th Sept 2017

                                                                              Writtenby Yun, Myeong Seon

                                                                             Translated by Park, Eun Kyung 

1.Definition

-The term "resident" means any individual who has his/her domicile orhas his/her place of residence in the Republic of Korea for more than 183 days.

It is irrelevant tonationality.

-  The term "nonresident" means anyindividual who is not a resident.

2. Standard of judgement foraddress.

- A domicile underArticle 1-2 of the Income Tax Act (hereinafter referred to as the"Act") shall be determined by the objective facts of livingrelationship, such as the existence of a family living together in the Republicof Korea and of the property located in the Republic of Korea.

(1)The case regarded as address is in Korea.

 Where a person who lives in the Republic ofKorea is any of the following persons, he/she shall be deemed to have his/herdomicile in the Republic of Korea:

① When aperson has an occupation which requires him/her to continually reside in theRepublic of Korea for one or more years;

② When aperson has family members living with him/her in the Republic of Korea, and isdeemed to continually reside in the Republic of Korea for one or more years inview of his/her occupation or property status.

(2) The case regardedas address is not in Korea.

Wherea person living or working overseas falls under any of the followingsubparagraphs, he/she shall be deemed to have no domicile in the Republic ofKorea.

When a person with aforeign nationality or citizenship under foreign laws, who has no family livingtogether with him/her in the Republic of Korea, and is not deemed to returnhome to reside mainly in the Republic of Korea in view of his/her occupation orproperty status.

3.Definition of a place of residence and the calculation of its period.

(1) Definition

Aplace of residence under Article 1-2 of the Act means a place where a personhas lived for a long time besides his/her domicile, and in which there is nogeneral living relationship as close as a domicile.

(2)The calculation of 183 days.

① The periodof residence in the Republic of Korea shall be from the date after the date ofa person's arrival in the Republic of Korea to the date of his/her departure.

② In caseswhere the period of residence in the Republic of Korea is over 183 days overtwo taxable periods, it shall be deemed that the relevant person has a place ofresidence in the Republic of Korea for over 183 days.

③ In cases wherea person having a place of residence in the Republic of Korea returns to theRepublic of Korea again after his/her departure from Korea, and where thepurpose of his/her departure (sightseeing or cure for disease) is deemedapparently temporary in view of the place of residence of family livingtogether with him/her and the location of his/her property, the relevant periodof his/her absence shall be deemed as the period of residence in the Republicof Korea.

④ OverseasKorean's entry from abroad

Ifthe purpose of entry is included in legal reason as sightseeing, cure of diseaseand the period of staying is definetely temporary, the period is deemed thatthe Korean doesn't have a place of residence in Korea.