- Foreign employees can choose to pay a flat 19% income tax on their total pay (20.9% including local income tax).
- You give up all tax-free allowances, deductions and credits.
- It usually only saves money on high salaries — roughly ₩165 million a year or more for a single person.
- It applies for 20 years from your first day of work in Korea, if you started on or before December 31, 2026.
How it works
Normally Korean income tax is progressive (6% to 45%) and you get deductions for pension and insurance contributions, dependents, card spending, medical costs and more. With the flat-rate option, tax is simply 19% of your total employment income, including allowances that would normally be tax-free, with no deductions or credits.
You can choose it at year-end tax settlement (via your employer) or when filing a May tax return, year by year. Some employers also apply it to monthly withholding if you ask.
Take-home Pay Calculator →Compare with normal monthly tax on your salaryFlat vs normal tax: a rough comparison
Single employee, no extra deductions, 2026 rates. Normal tax shown is income tax plus local tax from the standard withholding method; real year-end credits (card spending, medical, pension savings) would lower it further.
| Annual salary | Normal tax | Flat 20.9% | Better |
|---|---|---|---|
| ₩60,000,000 | ≈ ₩4.3M | ₩12.5M | Normal |
| ₩100,000,000 | ≈ ₩12.8M | ₩20.9M | Normal |
| ₩150,000,000 | ≈ ₩29.4M | ₩31.4M | Normal |
| ₩170,000,000 | ≈ ₩36.6M | ₩35.5M | Flat |
| ₩200,000,000 | ≈ ₩48.0M | ₩41.8M | Flat |
| ₩300,000,000 | ≈ ₩86.8M | ₩62.7M | Flat |
The more tax-free allowances, dependents and credits you have, the higher the break-even point. Ask your employer to calculate both ways at year-end settlement.
Who can use it
- Foreign nationals employed in Korea (not self-employed or freelancers paid as business income).
- Not available if you work for a company in which you hold a large stake (a related company, generally 30% or more).
- The 20-year period counts from your first day of work in Korea.
FAQ
Can I switch back to normal tax next year?
Yes. The choice is made for each tax year, so you can compare every year and pick whichever is lower.
Does the flat tax change my pension or health insurance?
No. Social insurance contributions are separate and are calculated the same way either way.
Does it apply to bonuses and allowances?
Yes. The 19% applies to total employment income, including bonuses and allowances that would normally be tax-free, such as the meal allowance.
Sources: Flat 19% tax for foreign workers (Taxtimes, Korean) · KPMG Korea tax brief, July 2026 (Korean)