💰 Tax Filing & Refund Guide for Foreign Residents in Korea (Hometax · Refunds · VAT Tips)

Typewriter with the words Tax Return – Korean tax filing guide for foreigners

Filing taxes in Korea can feel intimidating, especially if you’re new to the system or your Korean is still in progress. The good news? Many foreign residents are eligible for tax refunds, deductions, or even a special flat tax rate, and short-term visitors can often get a VAT (tax) refund on shopping.

This guide walks you through the basics in plain English so you can file with confidence, avoid unnecessary penalties, and keep more money for enjoying life in Korea. (This is a general guide, not professional tax advice.)

By the end of this post, you’ll know:

Who needs to think about taxes in Korea (residents vs. travelers)
How year-end tax settlement & May income tax filing work
Where and how to file online using Hometax
What the flat tax rate for some foreign workers is
How VAT tax refunds work for short-term visitors
Which official English resources and help desks you can use

📚 Table of Contents

1. Who Needs to File Taxes in Korea?
2. Tax Filing & Refund Timeline (Residents)
3. How to File (Employees, Freelancers, Business Owners)
4. Tax Tips for Short-Term Travelers (VAT Refunds)
5. Official Resources & Support Centers
6. Tips to Maximize Your Refund
7. “Say what?” – Real Korean Tax Phrases
8. Did You Know?
9. Final Thoughts

🧾 1. Who Needs to File Taxes in Korea?

Most foreigners who earn income in Korea are subject to Korean income tax. This includes:

Salaried employees (회사원, 어학원 교사, university staff, etc.)
Freelancers (private tutors, content creators, consultants)
Business owners / self-employed

If you are a regular employee, your company usually handles most of the process through the year-end tax settlement (연말정산), which works like an annual reconciliation of the tax you paid vs. the tax you actually owe.

Must think about Korean tax: Foreign residents with Korean-source income (salary, part-time, freelance, business)
Usually no filing: Tourists or short-term visitors with no Korean-source income (but see VAT refunds in section 4)

💡 If you have multiple jobs, freelance income, or run a 사업자 (business), you will typically file a separate comprehensive income tax return in May, even if your main company did year-end settlement.

📅 2. Tax Filing & Refund Timeline (Residents)

January – February: 연말정산 (year-end tax settlement) for employees, done via your employer. You submit receipts for things like credit card spending, medical costs, education, donations, rent, etc.
May (usually May 1–31): Comprehensive income tax return for people with freelance income, business income, or multiple jobs. This is done directly with the National Tax Service (NTS) via Hometax or your local tax office.
Refund timing: For most people, refunds arrive in their Korean bank account within 1–2 months after filing, but it can vary.

✅ Tip: Mark May in your calendar if you do any side jobs, have “freelance” invoices, or run an online business in Korea.

🛠 3. How to File: Step-by-Step (Residents)

3-1. Employees (Your Company Does Most of It)

Collect your income statement from HR or via Hometax (근로소득 원천징수영수증).
Download or check your year-end data (credit card, cash receipts, insurance, etc.) via Hometax’s 연말정산 간소화 service.
Submit any extra documents to HR (e.g., overseas tuition, private academies, specific rent contracts).
Your employer runs the calculation and adjusts your February salary: extra tax → deducted / refund → added to your pay.

3-2. Freelancers & Multiple Income Holders (May Filing)

Prepare documents: income statements (지급명세서), bank records, expense receipts, and your ARC/passport.
Create or log in to your Hometax account: www.hometax.go.kr (some menus are available in English).
Select the 종합소득세 신고 (comprehensive income tax return) menu and follow the guided steps.
Enter your income & deductions, check the calculated tax, then submit electronically or print and file in person.
Register your Korean bank account for refunds.

3-3. Special Flat Tax Rate for Some Foreign Workers

Depending on your situation, you may be allowed to choose a flat tax rate on employment income instead of the normal progressive brackets. As of recent rules, many foreign employees can apply a 19% flat tax rate for a limited period if conditions are met (for example, certain start dates and employment types).

⚠️ This rule changes over time and has detailed conditions. Always check the latest guidance on the National Tax Service (NTS) site or ask a licensed tax professional before choosing the flat rate.

🧳 4. Tax Tips for Short-Term Travelers (VAT Refunds)

If you’re visiting Korea as a tourist and do not earn income here, you still deal with tax in one important way: VAT refunds on shopping.

Look for “Tax Free” or “Tax Refund” logos at shops, department stores, and some convenience stores.
There is a minimum purchase amount per store and day (often around the ₩10,000–₩30,000 range including VAT; check the exact amount at the counter).
Show your passport when paying. Some stores process the refund immediately, others give you a form or electronic slip to handle at the airport kiosk before departure.
At the airport, follow the “Tax Refund” signs, scan your receipts or passport at the kiosk, and, if requested, show your purchases to customs.

Useful phrases:

택스 리펀드 되나요?
taekseu ripeondeu doenayo?
→ Do you offer tax refund?
부가세 환급은 어디에서 받아요?
bugase hwan-geubeun eodieseo badayo?
→ Where do I get the VAT refund?

🏢 5. Official Resources & Support Centers

Hometax (National Tax Service) – Main portal for filing, checking year-end data, and viewing tax records.
National Tax Service (NTS) English Page – Guides and forms in English for foreign taxpayers.
Seoul Global Center – Multilingual counseling, tax seminars, and 1:1 help for foreign residents in Seoul.
Local Global Centers (e.g., in Busan, Incheon, Suwon) – Many offer seasonal tax-help programs in English or other languages.

💡 6. Tips to Maximize Your Refund

Collect receipts & use your own cards: Many deductions (transport, card use, donations, medical bills) are linked to your resident registration or ARC number. Use your own payment methods where possible.
Check the flat tax option: If you are a foreign employee, ask HR or a tax expert whether the flat 19% foreign worker tax is better for you than the progressive rates.
Don’t forget rent deductions: If you officially pay rent (especially with a registered contract), ask whether you can claim 월세 공제 (rent deduction).
Join free seminars: Global centers and some district offices offer free tax workshops for foreigners before May.

🗯 7. “Say what?” – Real Korean Tax Phrases

“연말정산, 13월의 월급”
Literally: “Year-end tax settlement, the 13th month’s salary.”

Koreans use this phrase because, when you get a big refund, it feels like receiving one extra month of salary. You may hear coworkers joking:

올해 13월의 월급 많이 받았어요?
orhae sip-sam-wol-ui wolgeup mani badasseoyo?
→ Did you get a big “13th-month salary” this year?

🌏 8. Did You Know?

Each year, over a million foreign residents are registered in Korea, and a large portion of them have to deal with Korean taxes at least once. To support this, the government and local authorities provide:

Dedicated phone hotlines with foreign-language assistance during tax season
Walk-in counseling days at tax offices and global centers
Step-by-step English guides and sample forms on NTS websites

So even if it feels confusing now, you’re definitely not alone—and there is help in English.

📦 Final Thoughts

Understanding the Korean tax system is part of truly living in Korea, not just visiting. Once you know how year-end settlement works, when to file in May, and how VAT refunds operate as a traveler, tax season becomes much less scary.

Save this post, check the official links, and don’t hesitate to ask questions at a local global center or tax office. The more confident you feel with money and paperwork, the more energy you’ll have for language learning, travel, and daily life here.

📘 More Posts You’ll Find Helpful!

❶ Living in Korea — Renting an Apartment as a Foreigner

❷ Speak Like a Real Korean 6 — Magic Words for Polite Requests

❸ Speak Like a Real Korean 9 — Order Like Locals (Café · Restaurant · Delivery)

Keep exploring step by step, and everyday Korean life will feel much easier.

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I teach students from 20+ countries on italki and create structured materials to help you handle both Korean language and real-life issues like taxes, housing, and daily conversations in Korea.