of 15 percent on taxable income not exceeding US$19,450. The rate increases to 28 percent for taxable income in excess of US$19,450 but not exceeding US$47,050, and to 31 percent for taxable income exceeding US$47,050 (Section 1(a)(b)(c)(d), United States Internal Revenue Code, 1999).
Partnerships are taxed at individual rates in both South Korea and the USA on the basis of the income shares of the individual partners. Corporations, however, are taxed at rates differing from individual income tax rates. An education tax is levied as a surcharge on most national and local taxes paid by both individuals and corporations. A residence surcharge of 10 percent of income tax liability is also applied (Ernst & Young, 2002; Ernst & Young, 2002b).
Basic income tax rates for individual in South Korea are presented in Table 1. The table may be found below on the following page.
Non-residents in South Korea are liable for tax only on South Korea-source income. Global taxation and separate t
...