What deductions and credits are available to foreign workers?

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.

Details

• 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)【1†L1-L8】.
• 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)【1†L1-L9】.
• 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)【1†L2-L9】.
• 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【1†L1-L9】.
• 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).