Taxes
Year-end settlement, income tax, refunds — the taxes foreigners get confused about, in one place. Income earned in Korea can be taxable for foreigners too.
Get Your Pension Back (Before You Leave)
You can get your pension premiums back when you leave — usually with the employer’s share and interest. Yourself, with no fee.
Tax guides
Year-End Tax Settlement
Year-end settlement is the process where your employer (the withholding agent) recalculates and finalizes the income tax on your last-year wages. It usually runs Jan–Feb through your company: if you overpaid you get a refund, if you underpaid you pay more. Foreign workers with Korea wage income are included. The NTS ‘simplified service’ gathers your deduction data in one place.
Comprehensive Income Tax (May)
Comprehensive income tax combines your various incomes from last year into one self-filing each May. If you only have a single wage income settled at year-end, you usually don’t file separately — but multiple jobs, freelance (business income), business, rental, or other income can make you liable. Long-term residents are generally treated as tax ‘residents,’ so Korea-source income may be filable. You file on Hometax (web) or Sontax (app), and the window is usually all of May (commonly through May 31).
Claiming Tax Refunds
If year-end settlement (Feb) or your May comprehensive income tax filing shows you overpaid, you get the difference back. You may also have an ‘unclaimed refund’ from the past (e.g. no account was registered). Whether you get a refund and how much varies by person; you can check, register an account, and request it yourself on Hometax (web) or Sontax (app). If you’re leaving Korea, it’s safer to handle it before departure.
Income & Withholding Certificates
When applying for a loan, visa extension, or various services, you often need documents that prove your income. The two main ones are the income certificate (finalized annual income) and the earned-income withholding receipt (the wage income your employer withheld and reported). They serve slightly different purposes, so first check which one the requester wants. You can issue them free online on Hometax (web), Sontax (app), or Gov24, and also at self-service kiosks.
Pension Lump-Sum Refund (on Departure)
The pension premiums you paid are your money, not a tax — foreigners eligible by social-security agreement (or other conditions) can receive a ‘lump-sum refund’ of what they paid when they permanently leave Korea. It often includes the employer’s share and interest, not just your portion. It’s generally paid once departure is confirmed, and you can claim it in several ways (before departure, on the day at Incheon Airport, or after leaving). The contact is the National Pension Service (☎1355), not the NTS.
Flat Tax Rate for Foreigners
At year-end/filing, foreign workers may choose the ‘flat tax rate special’ instead of the regular progressive rates (which rise as income grows). It applies one set rate but generally gives up most exemptions, reductions, and income/tax deductions, so which is better varies by person. It applies only if you elect it, and the key is to compute both ways and pick whichever is more favorable. ⚠️ By policy this guide does not state a specific rate figure — confirm this year’s eligibility, rate, and applicable period with the NTS / Hometax.
Business Registration & VAT (Self-employed)
To run a business in Korea you need a ‘business registration.’ But above all, first confirm your visa permits business (profit-making activity) — running a business on a visa that doesn’t allow it can seriously jeopardize your stay and employment. Once registered, you have VAT (usually once or twice a year depending on your taxpayer type) and comprehensive income-tax (each May) filing duties. You can apply and file on Hometax (web), Sontax (app), or at a tax office.
This is general information and has no legal force. Taxes change every year and depend on your situation — always verify with official sources (NTS ☎126, Hometax, a tax accountant).