Limiting VISA Issuance
The Korea Customs Service and the South Korean Ministry of Justice, Ministry of the Interior, and National Tax Service announced on April 24 that they would probe into tax delinquency by foreigners in South Korea on a larger scale from next month onwards.
The probe has been conducted since May last year only by the Ansan Office of the Incheon Immigration Office and with regard to local taxes alone. Next month, it is expanded to cover national taxes and customs duties as well and to be performed by all of the 16 immigration offices across the country. During the trial implementation, the South Korea government collected approximately 300 million won (US$270,000) from 1,460 foreigners.
Foreigners in South Korea are governed by the same tax law as South Koreans in the country if they have income or assets. However, they can extend their visas even in the event of tax delinquency as of now. This has led to a back tax of about 180 billion won.
In order to prevent visa extension by foreigners with back taxes, the local taxation authorities will be allowed to share their data on foreign tax delinquents with the immigration offices. Then, the offices will allow visa extension only for those with no arrears. When it comes to late tax payment, limited extension of stay is applied and tax collection is initiated. The limited extension of stay cannot be longer than six months although normal extension of stay is for two to five years.