Korea Income Tax for Foreigners: NTS Filing Made Simple

Paying income tax in a second language feels intimidating. The good news: Korea’s National Tax Service (NTS, Guksecheong) runs an English Hometax portal, and most foreign employees only need to check a few documents once a year. This guide explains who pays, how year-end tax settlement works, and how to claim a refund.

Do Foreigners in Korea Have to Pay Income Tax?

Yes. If you earn income in Korea, you owe income tax to the National Tax Service. Tax residents (those who stay 183 days or more, or keep a home and family here) are taxed on worldwide income. Non-residents pay tax only on Korea-source income. Your visa type, such as E-7 or F-6, does not exempt you from filing.

Residency is the key concept. Most foreign workers and marriage migrants become residents within their first year. Students on a D-2 visa with a part-time job, or job seekers on a D-10 visa earning income, may also have filing duties. The Income Tax Act, published in English by the Ministry of Government Legislation (MOLEG), defines these categories.

If you just arrived and set up your bank account and Alien Registration Card, taxes come later. First, get your basics in order. open bank account Korea foreigner

How Does Year-End Tax Settlement Work for Foreign Employees?

If you are a salaried foreign worker, your employer withholds income tax from each paycheck. Once a year, you reconcile the total in yeonmal jeongsan (year-end tax settlement Korea foreigner). You submit deduction documents in January, and your company finalizes the math in February. You either get a refund or pay a small balance.

What the year-end tax settlement covers

Year-end tax settlement compares the tax already withheld during the year with the tax you actually owe after deductions. Common deductions include:

• National pension and National Health Insurance contributions
• Credit card and check card (debit) spending above a threshold
• Medical and education expenses
• Dependents (spouse, children, parents) who meet income limits
• Monthly rent (wolse) for eligible tenants

The NTS offers a Simplified Year-end Tax Settlement Service (Yeonmal Jeongsan Ganso-hwa) inside Hometax. It pulls many records, like insurance and card spending, automatically. You download a PDF and hand it to your HR or payroll team.

“A foreign worker who has earned income may choose to apply either the progressive tax rates or the flat tax rate when filing year-end tax settlement.” - National Tax Service, Easy Guide for Foreigners’ Year-end Tax Settlement

Foreign employees should confirm their National Health Insurance status before filing, since NHIS premiums are deductible. NHIS foreigner health insurance

What Is the 19% Flat Tax Rate for Foreign Workers?

Foreign workers may elect a flat tax rate of 19% on earned income instead of Korea’s progressive rates, which run from 6% to 45%. The flat rate is simpler but ignores most deductions. It applies for up to 20 years from the date you first started working in Korea. A local income tax of 1.9% is added on top.

Which option is better depends on your salary and deductions. If you have many dependents, large medical bills, or high rent, the progressive system with deductions may produce a smaller bill. If you earn a high salary with few deductions, the flat 19% rate often wins. You choose each year, so you are not locked in.

Use the NTS English materials or ask the Foreign Taxpayer support line to compare. The National Tax Service publishes an annual English guide that walks through both methods with worked examples for income tax filing Korea foreigner cases.

How Do You File Global Income Tax with the NTS?

If you are self-employed, a freelancer, a private tutor, or you earn rental and business income, you file jonghap sodeukse (global income tax). The filing window is May 1 to May 31 for the previous calendar year. You report all income types together, apply deductions, and pay any balance. Late filing adds penalties.

Global income combines several streams: business income, freelance fees, interest, dividends, pension, and other income. Salaried employees who already completed year-end tax settlement usually do not file again in May, unless they had extra side income above the reporting threshold or changed jobs without a combined settlement.

You can file global income tax online through Hometax, through the mobile app Son-tax, or on paper at your district tax office. The Government24 portal links to related civil services in English if you need supporting certificates. Always keep receipts and contracts, because the NTS may request proof of your declared expenses.

How to Register and Use Hometax as a Foreigner

NTS Hometax foreigner registration uses your Alien Registration Card. Visit the Hometax site, switch to the English service, and sign up with your ARC number and a verified identity method, such as a mobile certificate or joint certificate. Once registered, you can view withholding records, download the simplified settlement PDF, file returns, and check refund status.

Step-by-step Hometax setup

1. Get your ARC (Alien Registration Card) from immigration first; you need the number to register. Visit HiKorea for ARC details.
2. Open the National Tax Service Hometax portal and select the English menu.
3. Choose member registration and enter your ARC number and personal details.
4. Verify your identity with a digital certificate, a Korean mobile phone, or a PASS app.
5. Log in to access year-end settlement data, filing forms, and refund tracking.

If your Korean is limited, the NTS Foreign Taxpayer support service answers questions in English. You can also call the government information line 1330 for general guidance and translation help. For complex cases, visit your local district tax office in person and ask for the foreign taxpayer desk.

How to Claim Your Tax Refund as a Foreigner

A tax refund Korea foreigner payment happens automatically when your withheld tax exceeds your final tax. For employees, the refund usually appears in your February or March paycheck after year-end tax settlement. For global income tax filers, the NTS deposits refunds to your registered Korean bank account within weeks of filing.

To receive a refund, your bank account details must be correct in Hometax. Foreigners who leave Korea permanently should settle taxes before departure. If you change jobs mid-year, ask your new employer to combine prior income, or file in May to avoid overpaying. Keep your ARC active until your tax matters close, since the NTS links your records to that number.

Missing documents are the most common reason refunds shrink. Download your simplified settlement PDF early, add anything the system missed (such as cash medical receipts or rent), and submit before your company’s internal deadline.