How do taxes work for foreign workers in Korea?

If you're on a Korean payroll, your employer withholds income tax every month and settles the year in your February pay (year-end tax settlement), refunding or collecting the difference. Foreign employees may be able to choose a single flat rate instead, but then get no deductions or credits. What to do 1. Before your February pay, give your employer your deduction documents. If you leave your job, your tax is settled in your final month's pay; keep the Receipt for Withholding Taxes. 2. Considering the flat rate? It only applies if you apply for it, and not everyone qualifies (it depends on when you started working in Korea, among other things). Ask your payroll team. 3. If year-end settlement didn't cover all your income, file a global income tax return May 1-31 of the next year. Good to know • Refunds or extra tax from year-end settlement come through your employer, not NTS. • Tax rates and the flat-rate rules can change. Check NTS for the current rate before you choose. Official sources • NTS, Income Tax Guide for Foreigners 2026: https://www.nts.go.kr/english/na/ntt/selectNttInfo.do?mi=10788&bbsId=30698&nttSn=1350804 • NTS, Filing returns: https://www.nts.go.kr/english/cm/cntnts/cntntsView.do?mi=40008&cntntsId=238886 • Flat-rate law, Art. 18-2 (Korean): https://www.law.go.kr/법령/조세특례제한법/제18조의2 This is general information, not legal advice. Your case may differ, so ask the NTS Helpline for Foreigners (+82-1588-0560) if unsure. Checked by the Verihood team on October 3, 2026. Rules and fees change, so confirm with the official source before you act.