KUALA LUMPUR - Foreign workers in South Korea are encouraged to take advantage of special benefits available during the year-end tax filing period, which runs through February.

The National Tax Service (NTS) said about 700,000 foreigners are eligible to file taxes, including spouses of Korean citizens, highly skilled engineers and native English teachers.

Foreigners married to Korean nationals may claim a 40 per cent income tax deduction on long-term housing savings contributions if their annual salary does not exceed 70 million won and their spouse does not own a home.

The NTS said the maximum deduction is capped at three million won per year.

“This benefit was previously available only to heads of households and did not apply to foreigners who cannot be registered as such under the Resident Registration Act, but it has now been expanded,” the agency said on Wednesday.

Engineers holding a bachelor’s degree or higher with overseas research and development experience are eligible for a 50 per cent income tax reduction for 10 years from the start of employment.

Native English teachers may also qualify for income tax exemptions under bilateral tax treaties if they meet the requirements related to teaching or research income.

“However, since the specific conditions for exemption vary by treaty, it is essential to check the text of the corresponding tax treaty,” the agency added.

Foreign workers may alternatively opt for a flat 19 per cent income tax rate instead of the standard progressive rates.

The flat tax option applies for up to 20 years from the first year of employment, excluding individuals who own 30 per cent or more of the company employing them.

The NTS said further details are available on its English-language website, where foreigners can download the “Easy Guide” and other tax manuals in English, Chinese and Vietnamese.