- Tax withheld from each paycheck is an estimate. In January–February, your employer settles the real tax for the year.
- If too much was withheld, the refund is usually added to your February or March pay. If too little, it is deducted.
- Foreign employees get the same deductions as Koreans, or can choose the flat 19% tax instead.
- Only spending and payments made by December 31 count, so December is the last chance to act.
Timeline
| When | What happens |
|---|---|
| November–December | Check your card spending on the Hometax year-end settlement preview; top up pension savings before Dec 31 |
| Mid-January | Hometax opens the simplified data (card use, medical, insurance, pension) — log in with your alien registration number |
| Late January–February | Submit deduction forms and documents to your employer (HR or payroll) |
| February–March pay | Refund paid or extra tax deducted |
Deductions most foreign employees can claim
- Credit and debit card spending: spending above 25% of your total salary is partly deductible — 15% for credit cards, 30% for debit cards and cash receipts, 40% for traditional markets and public transport. Only spending in Korea counts.
- Pension savings and IRP accounts: 13.2–16.5% of up to ₩9 million paid in per year comes back as a tax credit.
- Medical expenses: 15% of medical costs above 3% of your salary, for treatment in Korea.
- Insurance premiums: 12% of up to ₩1 million of protection-type insurance.
- Monthly rent: 15–17% of rent paid (up to ₩10 million) if you meet the conditions — a lease in your name, your address registered and salary up to ₩80 million. Ask your employer whether you qualify.
- Donations: 15% (30% above ₩10 million) with official receipts.
Family members (dependents)
- A spouse and children can be claimed if their income is low enough (generally ₩1 million a year or less, or salary of up to ₩5 million).
- For family members abroad you will need official documents proving the relationship (for example a family register or birth certificate, often with a translation). Parents living outside Korea generally cannot be claimed.
- Requirements and documents vary, so check with your employer before the deadline.
Normal tax or the 19% flat tax?
Foreign employees can choose a flat 19% income tax (20.9% with local tax) on total pay instead of the normal progressive tax with deductions. For most salaries the normal method is lower — the flat rate usually only pays off above roughly ₩165 million a year. See our flat tax guide.
Leaving Korea during the year
If you leave your job and Korea before the end of the year, your employer settles your tax for that year when you leave. Give HR your documents before your last day, and keep your final payslip and withholding receipt (근로소득 원천징수영수증).
FAQ
Do I need to file anything myself?
Usually not — your employer does the settlement. You only need to submit your deduction documents to HR. If you had other income or missed a deduction, you can file a return yourself in May.
Can I use Hometax in English?
Hometax offers some English support, and you can log in with your alien registration number using a simple authentication app. Many employers also help foreign staff download the simplified data.
Why did I owe tax instead of getting a refund?
Usually because too little was withheld during the year (for example an 80% withholding choice, a bonus, or a mid-year job change) or because you had few deductions.
Sources: National Tax Service (Hometax)