Taxes & Year-End Settlement
If you’re employed in Korea, income tax is withheld from your salary each month, and early each year (usually Jan–Feb) a year-end settlement (연말정산) reconciles your annual tax — you get a refund or pay more. Foreign workers may choose a flat-rate special option instead of the progressive rates (but lose deductions); whether it’s better depends on your situation. If you have freelance/business income, you also file a separate global income tax return each May.
What to bring
- ARC
- Withholding receipt for earned income (from employer)
- Deduction proofs — medical, rent, education, donations, insurance, etc.
- A Hometax login (joint/simple cert) or documents via your employer
- (If choosing the flat rate) an application form to your employer
Step by step
- 1Your employer requests year-end materials — submit deduction proofs
- 2Check/download your data on Hometax (hometax.go.kr) “simplified” service
- 3Compare flat rate vs. standard rate (use the simplified estimate)
- 4Submit to your employer → get a refund or pay extra by the result
Tips
- ⚠️ The flat rate forgoes most deductions/credits — compare both via the simplified service first.
- Foreigner help: NTS foreign-taxpayer line ☎1588-0560 (English); general tax counseling ☎126.
- ⚠️ Freelance/side/business income may require a May global income tax filing (penalties if missed).
- Rates, deduction limits, and the special period can change — verify on Hometax / the official source.
Key contacts
- NTS foreign-taxpayer counseling ☎1588-0560 (English)
- National Tax counseling ☎126
- Hometax hometax.go.kr
Related guides
This is general guidance and may change over time. Always verify the latest details with the official source before applying.
Last updated: 2026-06-09