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Question

Can foreign workers choose the flat 19% tax rate?

As of · sources retrieved from official Korean authorities

The flat 19 % withholding tax applies only to wages paid by a Korean company to temporary‑staffing agency workers assigned from a foreign corporation and cannot be elected by ordinary foreign employees; most foreign workers are taxed under the regular progressive rates. Full details below.

The rule this rests on

[2]조세특례제한법Article 94

Article 94 of the Income Tax Act, Article 8 of the Securities Transaction Tax Act, and Article 5 (1) 5 of the Act on Special Rural Development Tax shall apply to listed stocks among the stocks traded through a multilateral-trade contracting company under Article 8-2 (5) of the Financial Investment Services and Capital Markets Act, regarding that they are traded on the securities market. [This Article Wholly Amended by Act No. 12173, Jan. 1, 2014] | Article 104-5 Deleted. <by Act No. 12173, Jan

[6]소득세법Article 131

Article 131 (2) shall apply mutatis mutandis in relation to timing for withholding income taxes from other income disposed of in accordance with Article 67 of the Corporate Tax Act. [This Article Added by Act No. 10408, Dec. 27, 2010] | Article 145-3 (Year-End Settlement, etc. of Religious Persons’ Income) | | (1) | When a withholding agent who pays income to a religious person and withholds income tax thereon, pays the religious person's income for February of the year immediately following

[8]Corporate Tax ActArticle 13

Article 13 (1) 1 and Article 57 shall not apply where the tax base and amount of corporate tax is estimated under the proviso to Article 66 (3): Provided , That this shall not apply where such tax base and amount are estimated, as prescribed by Presidential Decree, since the account books or other evidentiary documents are destroyed by a natural disaster or on other grounds. <Amended on Dec. 24, 2018> [This Article Wholly Amended on Dec. 30, 2010] | Article 69 (Determination of Occasional Impo

[9]Local Tax ActArticle 22

Article 22 shall apply mutatis mutandis to the notification of the registered data on registration and license tax. Section 3 Registration and License Tax on Licenses | Article 34 (Tax Rates) | | (1) | Tax rates of registration and license tax on a license (hereafter referred to as "registration and license tax" in this Section) shall be in accordance with the following classification: <Amended by Act No. 12153, Jan. 1, 2014> | | | (2) | In applying paragraph (1) to a Special Self-governing

  • Legal basis

  • Article 156‑7 of the Income Tax Act mandates a 19 % withholding for temporary‑staffing agency workers hired from a foreign corporation.

  • This rate is a statutory withholding amount, not a voluntary flat‑rate election for individual foreign employees.

  • Who can use the flat 19 % rate

  • Workers placed in Korea by a foreign temporary‑staffing corporation under a staffing contract.

  • Payments made by the Korean hiring company to those workers.

  • It does not apply to foreign students (D‑2), regular foreign employees on F‑4, E‑7, or other visas.

  • If you do not fall into the temporary‑staffing scenario

  • Your income tax is calculated under the standard progressive schedule.

  • You may file a year‑end tax settlement to claim deductions (e.g., tuition, insurance).

  • In limited special cases, an employer can submit an “Application of Flat Tax Rate for Foreign Employees” form, but this requires Ministry of Strategy and Finance approval and is not generally available.

  • How the 19 % rate is applied (when applicable)

  1. The Korean hiring corporation withholds 19 % of the worker’s wage and pays it to the tax office by the 10th day of the following month.
  2. The foreign staffing corporation also withholds tax on February payments for the prior year’s wages.
  3. No action is required from the worker; the employer handles the withholding.

  • If you think the wrong rate was applied

  • Request a correction from the tax office within five years from the end of the month the tax was withheld.

  • The tax office must decide within six months of receiving the request.

  • Hotlines for assistance

  • General labor issues: 1350 (Labor Office)

  • Tax questions: 132 (Legal Aid) or your local district tax office

  • Foreign‑worker counseling: 1577‑0071

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Sources fetched 2026-09-19 · Korean laws change — verify with the issuing authority before acting.

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