Question
What deductions and credits are available to foreign workers?
As of · sources retrieved from official Korean authorities
The credit‑card/debit‑card spending deduction and the composite ceiling limit total deductions to ₩25 million, and other standard resident deductions (e.g., contributions, rent, employee‑stock, long‑term savings) also apply; you must file your year‑end tax settlement by May 31 of the following year, with a correction window of three years if missed. Full details below.
The rule this rests on
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
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
- Primary deduction for credit‑card/debit‑card spending – If annual spending on credit cards, cash receipts, prepaid or debit cards exceeds 25 % of your wages, you can deduct a calculated amount from earned income (Article 126‑2).
- Composite ceiling on total deductions – All deductions (including the credit‑card deduction, contributions, rent, etc.) are ignored for any amount above ₩25 million (Article 132‑2).
- Other common resident deductions – Contributions to various funds, rent, employee‑stock ownership, long‑term collective savings, and other items listed in Article 132‑2 sub‑items 3‑9 also apply to foreign workers who are tax residents (stay ≥ 183 days per year).
- Filing procedure – Keep all receipts (credit‑card statements, cash‑receipt slips, prepaid‑card proofs). Enter the amounts in the “income deduction for credit cards, etc.” field of the NTS withholding‑tax calculator or tax return form; the National Tax Service will apply the composite‑ceiling limit automatically.
- Deadlines – Year‑end tax settlement must be filed by May 31 of the following year. If missed, you may still submit a correction request within three years.
- Hotlines for help – Tax questions: call the National Tax Service at 1350 or visit a district tax office. Labor‑related issues: 1350 (Labor Office) or 1577‑0071 (Foreign Worker Counseling Center).
Sources fetched 2026-09-19 · Korean laws change — verify with the issuing authority before acting.