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.
What to prepare
- ARC / passport
- Proof for deductions (medical, donations, rent, education, if applicable)
- The forms your company requests (deduction declaration, etc.)
How to proceed
- 1Get the year-end guidance and schedule from your employer (usually Jan–Feb)
- 2On Hometax (web) or Sontax (app) ‘simplified service,’ check and download your deduction data
- 3Submit that data plus any extra deduction proof to your company (or via Hometax easy-submit)
- 4After your company finalizes it, the refund/extra charge appears in your February (or March) pay
- 5If you quit or changed jobs mid-year, you may need to submit documents before your final paycheck
Tips
- Foreign workers may elect a ‘flat-rate special’ — whichever is more favorable vs. the progressive rate. ⚠️ Eligibility, rate, and period change yearly, so we don’t state figures here; confirm on Hometax/NTS (see the ‘Flat Tax Rate’ guide).
- Some costs are not deductible — e.g. overseas medical bills, foreign credit-card spending, children’s overseas education. Check in advance what counts.
- Deduction items, limits, and rates change every year — don’t assume amounts; confirm via Hometax or a tax accountant.
- Mid-year quitting/changing jobs or having two-plus employers can make settlement complex — if stuck, call NTS ☎126 (foreigners: English help ☎1588-0560).
- ⚠️ If you have income not settled here (multiple jobs, freelance, business), you may need to file comprehensive income tax next May — missing it can bring penalty tax and other downsides (verify amounts officially).
Key contacts
- NTS Semirae call center ☎126 (nationwide, no area code)
- Foreigner English help line ☎1588-0560
- Hometax hometax.go.kr · Sontax (mobile app)
- If complex, consult your local tax office or a tax accountant
Related guides
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).
Last updated: 2026-06-09