Construction Workers Overseas Will Soon Receive a Huge Financial Benefit

Tax exemptions for overseas construction workers expanded
Upgraded to $4,200 per month
Special supply of ‘Maegyo Station Palucid’

Overseas construction workers are set to receive substantial tax benefits.

According to the Overseas Construction Association, on the 27th, the Income Tax Law and Special Tax Restriction Law were recently enacted and promulgated.

As a result, the non-taxable income for overseas construction workers has been raised to $4,200 per month this year.

Applying this tax law, an overseas construction worker earning an annual salary of $84,000 would pay virtually no taxes. In contrast, the same yearly income would result in a tax of about $10,080 if earned domestically. Thus, working overseas yields tangible benefits.

In the future, construction site workers employed overseas will receive tax savings like never before.

The Ministry of Land, Infrastructure and Transport has established a special supply recommendation regulation for private housing of 5 square meters (approximately 54 square feet) or less for overseas construction workers, which has been in effect since September last year.

Among the workers, those who have worked overseas for more than a year within the last 10 years and meet the priority conditions after signing up for housing subscription savings within two years from the date of return are eligible. Extra points are given to young workers and those with minor children.

The apartment selected for special supply is Maegyo Station Palucid in Gwonseon-gu, Suwon, Gyeonggi-do. It is one stop from Suwon Station, which has access to Line 1, Suin-Bundang Line, KTX, and Gyeongbu Line. It is close to several schools and has a variety of infrastructure nearby, including department stores, supermarkets, Suwon Fortress, and Olympic Park.

The government is taking care of overseas construction workers because it is pushing for expanding overseas construction orders. The government’s annual target is $40 billion, and last year’s order was $33.3 billion.

However, they reportedly struggle to secure a workforce due to a lack of employees willing to work overseas.

Due to the rise in income levels, major construction firms in South Korea struggle to find workers willing to work overseas despite offering additional allowances and regular vacations.

Meanwhile, the government set a target of $35 billion for overseas construction orders last year but ultimately recorded $33.3 billion, failing to achieve the target.

Some argue that achieving this year’s target of $40 billion will be difficult.

According to the Ministry of Land, Infrastructure and Transport’s Overseas Construction Integrated Information Service, construction orders from the Middle East and Europe increased by 209.5% and 375.5%, respectively, from the previous year. However, orders from the Pacific, North America, and Africa have sharply declined. The order amount decreased by $4 billion in the prior year.

The government aims to support domestic firms in expanding their presence in the lucrative overseas construction market, focusing on contracting and investment development businesses.

Recently, Incheon International Airport Corporation signed a contract with the Philippine government to develop and operate Manila International Airport, a project worth $3.4 billion.

The expected cumulative sales during the project period amount to $23 billion (approximately 30 trillion KRW). If the project is completed, it is expected to contribute to the government’s target order amount.