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한국어Tiếng Việt
Taxes

Year-End Tax Settlement for Foreign Employees 외국인 근로자 연말정산

Every year, your employer finalizes your income tax for the year. This is called year-end tax settlement (연말정산). It is the same process for foreign and Korean employees. The big choice for foreigners: you can pay a flat 19% tax on your wages instead of the normal rates (6% to 45%), for up to 20 years. The flat rate is not always cheaper, because you lose all deductions and credits. Compare both before you decide.

Last checked 2026-11-03 · Legal basis: Income Tax Act; Act on Restriction on Special Cases Concerning Taxation, Article 18-2

19%flat tax option instead of 6% to 45%
20 yearshow long you can use the flat rate, counted from your first work year in Korea
Jan to Febwhen your employer does the settlement (refund or extra tax comes with your salary)
183 dayslive in Korea this long in a tax year to be a tax resident

Which tax method should I think about?

Answer 3 quick questions.

Question 1 of 3

Do you work for a company in Korea and get a salary?

!

This guide is for employees. If you have other income, you may need to file a separate income tax return. Ask the NTS helpline.

Question 2 of 3

Is your employer NOT a special-relationship company (for example, you own less than 30% of it)?

!

The 19% flat rate does not apply if you work for a company you have a special relationship with. Use the normal rate.

Question 3 of 3

Did you start working in Korea less than 20 years ago?

!

The 19% flat rate is only for up to 20 years from your first work year in Korea. After that you use the normal rates.

✓

You may choose the 19% flat rate or the normal rate. Use the NTS Year-End Tax Simplification Service to estimate both.

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  1. 2

    Collect extra documents

    You do thisJanuary

    Some papers are not in Hometax. Get them yourself and give them to your employer.

    !Medical costs, credit card spending and children's school fees paid outside Korea cannot be deducted.
  2. 3

    Choose: normal rate or 19% flat rate

    You do thisWhen you submit your year-end forms

    The normal method uses your deductions and credits. The flat rate is 19% of your total wages, including non-taxable pay, with no deductions or credits at all. Whichever is lower is better for you. It depends on your pay and family.

    !The flat rate does not apply if you work for a special-relationship company (for example you own 30% or more of it). You also lose tax breaks such as the SME young worker reduction, child credit and monthly rent credit.
  3. 4

    Employer finishes and you get the result

    Your employerBy the end of February

    Your employer compares the final tax with what was already withheld each month. If too much was withheld, you get a refund in your salary. If too little, the difference is taken from your salary.

  4. 5

    Check special breaks for foreigners

    You do thisWith your forms

    Foreign workers may qualify for these breaks. They are not available together with the flat rate.

Documents checklist

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English help from the tax office

  • Easy Guide (English) and manuals in English, Chinese and Vietnamese: nts.go.kr/english/main.do, then 2025 Year-end Tax Settlement.
  • The tax office has an English helpline for foreign taxpayers. The NTS English release says 1588-1560 and the Korean release says 1588-0560, so check the number on the NTS English website.
  • Tax resident means you have a home, or a place of residence, in Korea for 183 days or more in the tax year. Residents get the same deductions as Koreans, with some foreigner-only differences.

Who to call

Tap to call.

NTS helpline for foreign taxpayers (English). Confirm number on nts.go.kr/english1588-1560 or 1588-05601345 Immigration Contact Center (multilingual)1345

More guides

Residence Card registration→Changing workplace (E-9)→Extending your period of stay→Reporting a change of address→Changing your visa status→Opening a bank account→Getting a mobile phone plan→Exchanging a foreign driver's license→Filing an unpaid wage complaint→Government substitute payment for unpaid wages→Challenging an unfair dismissal→Workplace injury compensation→National Health Insurance for foreigners→Protecting your rental deposit→Sent money to a scammer: freeze the account→Registering an international marriage→Departure Guarantee Insurance (severance pay)→Return Cost Insurance→National Pension lump-sum refund→