Year-end tax settlement estimator

The 19% flat rate trade-off

Foreign workers in Korea can elect a flat 19% national tax rate (plus 1.9% local = 20.9% total) for 20 years from their first Korean employment date. The trade-off: the flat rate forfeits every deduction and credit, including dependents, rent, medical, and card spending.

When progressive usually wins

Anyone supporting dependents (domestic or overseas), paying Korean rent under ₩80M salary, paying substantial medical costs, or earning under ₩100M is almost always better off on progressive rates. The employment income deduction alone reduces taxable income by ₩12M-₩20M before brackets even apply.

When flat rate wins

Single high earners above ₩130M-₩170M with few deductions, new arrivals without yet-registered dependents, and short-term assignees in their first year often benefit from the flat rate. Note that employer-paid NHIS and employment insurance premiums, normally non-taxable, become taxable under flat rate.

The overseas dependent deduction

The largest deduction foreign workers routinely miss: ₩1.5M per year per overseas dependent (spouse, children under 20, parents 60+) who has annual income under ₩1M. A worker supporting a spouse and two parents in Vietnam or the Philippines can claim ₩4.5M in basic deductions.

Required documentation: birth or marriage certificates with apostille or notarization plus Korean translation, and proof of support (remittance records). Hometax does not populate overseas dependents automatically, you must register them through your employer's HR.

Monthly rent tax credit

Renters earning under ₩80M can claim 15-17% of annual rent paid (up to ₩10M of qualifying rent) as a direct tax credit. Maximum credit: ₩1.7M/year for salaries under ₩55M. Your housing must be 85 sqm or under, or market value under ₩400M. Officetels and goshiwon qualify.