U.S. Taxes for Business Owners in Korea
U.S. citizens and green-card holders generally report their worldwide income to the IRS, even while living in Korea, whenever a return is required. Owning a Korean company brings forms of its own, and in some cases U.S. tax on company income that was never paid out to you. Missing these forms is expensive. We prepare the U.S. side in Korean or English, using your Korean returns so the two countries' filings agree.
What's included
- Form 1040 for U.S. citizens and green-card holders living in Korea
- Form 5471 for U.S. owners, officers and directors of Korean corporations
- U.S. tax on a Korean company's undistributed income in some cases (Subpart F, section 951A) and related reporting
- Foreign tax credit (Form 1116) for qualifying Korean income tax you paid, and the foreign earned income exclusion (Form 2555) when you qualify
- U.S.–Korea tax treaty benefits (Form 8833 when required)
- FBAR and Form 8938 for personal and company accounts in Korea
- Catching up on years that were not filed
This is for you if
- You hold a U.S. passport or green card and run a business in Korea
- You own shares in, or are an officer of, a Korean company
- You moved back to Korea and are not sure what the U.S. still expects
Questions
I live in Korea. When is my U.S. return due?
If both your home and your main place of work are outside the U.S. on April 15, you generally get an automatic extension to June 15 to file and pay. Form 4868 extends the time to file (not to pay) to October 15. Interest on unpaid tax runs from April 15.
Will I pay tax twice, in Korea and the U.S.?
Usually not on the same income. Korean income tax you paid can generally be credited against U.S. tax, within limits, and the treaty or the foreign earned income exclusion may also help. We work out which applies to you.
I moved to Korea. Do I still owe California tax?
Possibly. Living in Korea does not by itself end California residency; it depends on where your domicile is and the purpose and length of your time abroad. We review your situation.
Have a tax question?
Call the office or send a message, and we will get back to you as soon as we can.