📌Year-end tax settlement that foreign workers must know!
Foreign workers, regardless of nationality or length of stay, must file a year-end tax settlement for their earned income.
If you had domestic earned income in 2024, you must complete your year-end tax settlement by the time you receive your salary for February 2025.
Please make sure to complete the consent form for simplified year-end tax settlement provision on Hometax so that the National Tax Service can provide the data to your company.
✅ Year-end tax settlement status of foreign workers
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✔ [Important Notes for Year-End Tax Settlement]
1️⃣ Differences between residents and non-residents
Residents: Same deductions apply as for foreigners.
(However, since the income deduction for housing savings contributions only applies to the head of household, foreigners cannot be the head of household under the Resident Registration Act and therefore cannot receive this deduction.)
- Non-residents: Excluded from some income and tax deductions applicable to residents.
2️⃣ 19% single tax rate option available
Foreign workers can choose between a 19% flat rate or the basic comprehensive income tax rate .
(However, foreigners who own more than 30% of the corporation's shares or are employed by a special affiliated company are excluded.)
* If you select the 19% single tax rate, tax exemptions, reductions, and tax credits are excluded.
3️⃣ Income tax reduction for foreign engineers
- Foreign engineers who provide engineering technology or meet researcher requirements will receive a 50% income tax reduction for 10 years.
4️⃣ Income tax exemption for native English-speaking teachers
- Native English teachers from countries that have concluded tax treaties with Korea (78 countries) are exempt from income tax on their lecture and research-related income for the period specified in the treaty if they meet the exemption requirements.
✔ [Services for Foreign Workers]
The National Tax Service provides an English manual for foreigners unfamiliar with the Korean language and system.
National Tax Service (English) website
└ Guidebook (Easy Guide, English) Resources > Publication > 2024 Easy Guide for Foreigners' Year-end Tax Settlement
└ Foreign Language Manual (English, Chinese, Vietnamese) Resources > Publication > 2024 Year-end Tax Settlement Manual for Foreigners
- The National Tax Service YouTube channel provides year-end tax settlement guidance videos.
- Foreigner-only counseling hotline (1588-0560, English)
Please refer to the above information and if you are eligible, please receive benefits and assistance, and be careful not to be subject to additional taxes (up to 40%) due to unfair deductions. 🙂