Hello, EEUTs!
The Tax Season has come! 😎
The year-end tax settlement(연말정산) is a way to check if the taxes you paid during the year match what you should have paid.
Depending on this, you might get a refund or need to pay more. 💸
Over 70% of workers who filed their income tax in the past five years got back an average of 800,000 KRW. That’s why it’s called “The salary of the 13th month.” 💰
Many EEUTs in The Pylon Club are eligible for the year-end tax settlement, so we hope you'll check the information in advance and get your 13th paycheck!
💡Make sure to check this out!
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Year-end tax settlement must be completed by the end of February.
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If your company uses the simplified service, apply by January 15!
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Check special rules like the 19% flat tax rate for foreign workers.
Finish Your Year-End Tax by February!
If you earn income in Korea, you must report it and settle your taxes, regardless of your nationality or how long you've been there.
But there's one exception: daily workers who are hired for short-term jobs, such as part-time workers or delivery drivers.
If you work for a company, they usually ask you to submit tax-related documents within a set period. Make sure to check with your workplace!
▶If your company uses the simplified service, apply by Jan 15
The National Tax Service (NTS) offers a simplified service to make year-end tax settlement easier. This service sends your tax information directly to your company.
If your company uses the simplified service, you must agree on it on the Hometax website by January 15.
If you cannot log in to the Hometax website using your foreign registration number, you can apply for "Hometax Online Access" at your local tax office.
Some documents, like proof of foreign registration, insurance receipts, or donation certificates, may need to be submitted separately.
▶Supporting Family Abroad? Here’s What You Need!
If you have been financially supporting your parents or grandparents in your home country, you might get a tax deduction. Here’s what you need to prepare:
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Documents proving family relationships, like a family registry.
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Proof of your family’s income (e.g., income certificates).
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Evidence you’re supporting them, like money transfer records.
▶Cash Payments Don’t Count
When filing taxes, only expenses paid with a credit or debit card are included. Cash payments and money spent outside Korea are not counted
Special Tax Rules for Foreign Workers
Foreign workers can take advantage of special tax rules to save money. But these benefits may vary depending on your situation, so check on Hometax to see what works best for you.
▶19% Flat Tax Rate for Foreign Workers
Foreign workers can choose to pay a flat 19% tax rate for up to 20 years from the first year of employment in Korea.
However, there are differences from the regular tax rate. For example, flat taxpayers might also pay taxes on employer-covered health insurance costs. So, compare these options carefully to see which suits better for you!
▶Tax Exemption for Foreign Teachers
If you’re a foreign teacher(professor), you may be exempt from income tax depending on your home country.
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All period exemption(2 countries): Albania, Hungary.
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3 years(4 countries): Georgia, China, Qatar, Tajikistan.
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2 years(74 countries): United States, Vietnam, Spain, Japan, France, Australia, and more.
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No exemption(15 countries): Norway, Sweden, Singapore, Canada, Hong Kong, and more.
Check the tax treaty between your country and Korea for details!
▶Reduction/exemption of income tax for foreign engineers
Foreign engineers who provide services under contract or meet researcher-related requirements can receive a 50% reduction in income tax for 10 years
Want to learn more? English, Chinese, and Vietnamese guides are available.
The National Tax Service provides guides in multiple languages. For help, check out these resources:
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Call Center (English): 1588-0560 (9 AM–6 PM, weekdays)
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Online Inquiry(English): NTS English Website > Help Desk
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YouTube Guides: NTS YouTube Channel
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Year-end Tax Settlement Manual (English, Chinese, Vietnamese) :
www.nts.go.kr/english/main.do > Resources > Publication > 2024 Easy Guide for Foreigners' Year-end Tax Settlement
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As of May 2024, the number of foreign workers in Korea exceeds 1 million.
Of these, 60 percent are holders of non-specialist work visas (E-9), F-4, and H-2 visas.
Last year, 611,000 foreign workers filed their year-end tax settlement.
We hope you get your year-end settlement this year and enjoy your 13th salary! 😘
