□ Global income tax filing for preparing 2016 returns
     ○ Taxpayers entitled to file a return
       1. Resident: An individual with global income generated from Korea and abroad who has had a domicile or
           residence in Korea for 183 days or longer.
       2. Non-resident: An individual not deemed to be a resident who has domestic-source global income.
       * Global income: The sum of interest income, dividend income, business income, earned income**, pension
           income and other income.
        ** In the case of foreign employees subject to Article 18-2 of the Restriction of Special Taxation Act, earned
            income shall not be included in global income tax base. (Revisions to the special taxation for foreign
            workers shall be explained below.)

     ○ Period for global income tax filing
       1. Period: May 1-31, 2017
       2. Business taxpayers subject to confirmation of compliant return who have submitted the confirmation report:
           May 1-June 30, 2017
       3. Taxpayers who leave Korea during the taxable period: A tax return should be filed for income generated from
           Jan. 1, 2016 to the date of departure by the day before the departure date.
       4. Taxpayers who leave Korea before the period for tax filing: A tax return should be filed by the day before the
           departure date for income attributable to 2016 and income generated from Jan. 1, 2017 to the departure date.

     ○ Service for foreign taxpayers

□ Tax Rate

Tax Base	Tax Rate (Attributable to 2016)	Tax Rate (Attributable to 2017)	Note
Up to 12 million won	6%	6%
Over 12 million won-46 million won	15%	15%
Over 46 million won-88 million won	24%	24%
Over 88 million won-150 million won	35%	35%
Over 150 million won	38%	-
150 million won-500 million won	-	38%	Applicable from 2018
Over 500 million won	-	40%

□ In consideration of the need to attract talented foreign employees and to ensure fairness in taxation, the expiration
    date of the special taxation for foreign workers is extended from Dec. 31, 2016 to Dec. 31, 2018.

       - For foreign workers who started working in Korea on or before Dec. 31, 2018, the special taxation will apply for
          five years.
       - For foreign workers who started working in Korea before Jan. 1, 2014, the special taxation will be applicable until
          Dec. 31, 2018.

       ○ Instead of global income taxation, a flat tax rate of 19 percent shall apply (previously 17 percent).
       - Applicable to business years commencing on or after Jan. 1, 2017

□ To encourage the faithful filing of education tax, penalty tax for unfaithful payment has been imposed.
   However, with the revision of the law, penalty tax for non-filing and under-filing will also be levied for education
   tax filed by those engaged in finance or insurance businesses.
   - Applicable to taxable years beginning on or after Jan. 1, 2017.

□ Where the tax authority re-examines a particular disposition of taxation following the decision of re-examination by
    the Tax Tribunal, such re-examination results shall not be subject to review of legality before taxation. This is to
    ensure the taxpayer’s prompt application of remedy measures and to clarify the procedures following the
    re-examination decision.
   - Applicable to notices issued on or after Feb. 7, 2017.

  ○ Where the tax authority conducts a re-examination, the revised disposition notice
     instead of the tax audit result notice shall be delivered to the taxpayer without delay.
     - Applicable to re-examination result notices issued on or after Feb. 7. 2017.