Year-end tax settlement guides for foreign employees
The Korean year-end settlement explained for people working here from abroad — what is different for you and what is the same as for Korean employees. Check your own numbers first with the calculator; it shows which of these matter for you.
19% flat tax for foreign employees in Korea — when it pays off and when it does not
Foreign employees in Korea can choose a 19% flat income tax on total pay instead of the normal 6–45% rates. With only a meal allowance it starts to win at about ₩165 million — here is how to check your own case.
Why a big year-end tax refund is not a win
Your refund is only the tax you overpaid during the year. What matters is your final tax — and how monthly withholding at 80%, 100% or 120% changes the refund but not the tax.
Year-end tax settlement calendar — what to do when, and when the refund arrives
December 31 is the last day to create deductions, Hometax data opens around January 15, and the refund usually comes with your February or March salary. The full cycle for foreign employees.
Hometax year-end PDF — how to download it and fill the calculator in one step
Download your year-end settlement data from Hometax as one PDF with your alien registration number, then drop it into the calculator to fill cards, medical, education, pension and housing automatically.
Claiming dependents as a foreign employee — including family who live abroad
Each dependent is a ₩1.5 million deduction. Family living abroad can qualify too, with foreign-issued relationship and income documents. Who counts, the income test, and what it is worth at your salary.
Total salary is not your contract salary — non-taxable pay explained
Total salary = annual pay minus non-taxable items such as the ₩200,000 monthly meal allowance. Every threshold uses it — and the 19% flat rate for foreigners adds the non-taxable part back.
Pension savings and IRP for foreign employees — 16.5% back, but check when you plan to leave Korea
Contributions to a Korean pension savings account or IRP earn a 13.2–16.5% tax credit, up to ₩9 million a year. For foreign employees the catch is the exit: closing the account before 55 takes 16.5% back. How much you get, the low-salary cap, and who should skip it.
Insurance premium tax credit for foreign employees — up to ₩120,000, if the policy and the people on it qualify
Protection-type insurance premiums earn a 12% tax credit on up to ₩1 million a year. Which policies count, who must be the policyholder and the insured, why a low salary can shrink the credit, and why your National Health Insurance is a different item.
More detailed guides are available in Korean. We add English guides step by step.