Income tax basics

If you work in Korea you pay income tax, regardless of nationality.

The basic structure

1. Income tax and local income tax are deducted from your salary each month (withholding).
2. A year's worth is calculated precisely at year-end settlement. Overpayment is refunded; underpayment is collected. See year-end-tax-settlement.
3. Your payslip shows the deductions. See payslip.

Rates and deduction items are set by law and change annually. Confirm exact calculations with the National Tax Service (126) or Hometax.

Special provisions for foreign workers

There are special taxation provisions that can apply to foreign workers. The requirements and methods are defined, so check with 126 or your company's payroll staff. Which method is advantageous depends on your circumstances.

Why tax matters

• You can get a refund through year-end settlement. Not claiming it simply loses it.
• Proof of income is needed for visa extensions, permanent residence and naturalisation assessments, loans and welfare applications.
• Settlement is required when leaving the country. See tax-refund-departure.

How to check

1. Check the income tax and local income tax deductions on your payslip.
2. Look up your income and tax records on Hometax (www.hometax.go.kr). See hometax-foreigners.
3. You can obtain income and tax payment certificates. See certificate-issue.

Where to go

• 126 National Tax Service call centre
• Hometax www.hometax.go.kr
• Your local tax office
• Your company's payroll or HR staff
• 1577-1366 interpretation

Questions people ask

Do I have to pay tax? There is a duty to pay regardless of nationality. Not paying brings surcharges and can cause problems in residence procedures.

I don't understand what was deducted from my salary. Get your payslip and check. Income tax, local income tax and the four insurances are the main items. See wage-deductions.

I think too much tax was deducted. Year-end settlement corrects it. Keep your payslips and make sure you complete the settlement.

I don't think my company is reporting my tax. Without proof of income you run into trouble later with visas and loans. Consult 126 and 1350.

Take care

"We'll pay cash without tax" ends up harming you. Without proof of income, visa extensions, permanent residence, naturalisation, loans and welfare applications are all blocked. Insist on properly declared wages.

Related

year-end-tax-settlement · hometax-foreigners · tax-refund-departure · payslip · certificate-issue

Source

National Tax Service www.nts.go.kr / As of 2026-08