Do foreign workers in Korea need to pay income tax, and how do they file it?

Foreign workers are subject to Korean income tax on their Korean‑source wages and must complete a year‑end tax settlement by May 31 of the following year (or submit a correction within five years if the tax was mis‑calculated); they file through their employer’s settlement process and can use the NTS withholding‑tax calculator or tax return form. Full details below.

Details

• Tax liability

• Any foreign worker who earns wage‑salary income in Korea is taxed under the regular progressive income‑tax schedule (the 19 % flat rate only applies to temporary‑staffing agency workers, not to regular foreign employees)【2†L1-L4】.

• The same deductions and credits available to Korean residents also apply to foreign workers who are tax residents (stay ≥ 183 days per year)【1†L1-L9】.

• When and how to file

• Year‑end tax settlement (연말정산) is the final calculation performed by your employer; the employer must issue the withholding‑tax receipt and any refund or additional tax collection by the end of May for the previous tax year【6†L1-L4】.

• Provide your employer with all required information (dependents, deductions, credit‑card spending, rent, etc.) before the settlement period.

• Use the National Tax Service (NTS) withholding‑tax calculator or the “Report of Deduction·Tax Credit from Income” form to enter amounts; the NTS applies the composite ceiling of ₩25 million for total deductions【1†L1-L9】.

• If you miss the employer settlement or need a correction

• You can file a correction request with the tax office within five years from the end of the month the tax was withheld【2†L4-L5】.

• The tax office must decide on the correction within six months of receiving the request【2†L5-L6】.

• Key deadlines

• Employer‑issued settlement receipt: by May 31 of the year after the taxable period【6†L1-L4】.

• Individual correction request: within five years of the withholding month【2†L4-L5】.

• Where to file / who to contact

• File through your employer’s year‑end settlement process; if you need to file independently, submit the appropriate NTS form at your local district tax office.

• For tax‑related questions, call the National Tax Service at 1350 or the Legal Aid Center at 132.

• For labor or employment issues, call the Labor Office at 1350 or the Foreign Worker Counseling Center at 1577‑0071.