Korean tax/year-end tax settlement guide for foreigners: earned income tax/home tax
Foreigners working in Korea are just like Koreans. taxpays. The terminology may be unfamiliar at first, but it is not difficult if you know the basics. From earned income tax to year-end tax settlementWe will summarize it from a foreigner's perspective.
What about taxes if I work in Korea?
Employees receive their monthly salary Income tax and four major insurance premiums are deducted in advance (tax withheld)Receive the amount paid. In other words, the company deducts the tax and pays it on its behalf. So there is little need to worry about it, but once a year ‘Year-end settlement’It's a good idea to take it with you.
Year-end tax settlement — ‘13th month’s salary’
year-end settlementis a procedure to settle taxes paid for one year and taxes actually owed. Medical expenses, education expenses, monthly rent, donations, etc. deduction itemsIf you reflect this, you will receive a refund of the additional tax you paid.13th month's salaryIt's called '. Normal Early next year (January-February)It is carried out through the company, Also applies to foreign workersIt is.
Comprehensive income tax for freelancers and business owners
not affiliated with the company Freelancer/Self-Employedis every year Comprehensive income tax in MayReport and pay directly. You can organize your income and expenses and report them, or you can also use a tax accountant or reporting assistance service.
Get help with home tax
Tax affairs are handled by the National Tax Service. hometaxProcess online at . For foreigners, applicable tax rates and deductions may vary depending on income and residence status, so please refer to the exact details. National Tax Service (126) consultation or tax expertIt is safe to get help. English information materials for foreigners are also available.
Although taxes may seem complicated, it is often enough for office workers to just take care of their company's year-end tax settlement. When in trouble, get help from experts!
