The Millo Blog Editorial Team reviewed official National Tax Service (NTS) documentation to verify these procedures. Updated August 8, 2026.
For most foreign employees in South Korea, the income tax filing procedures for foreign residents in Korea are streamlined through a process called the year-end settlement, which is handled directly by the employer. However, depending on your income sources or specific tax choices—such as opting for a flat tax rate—you may be required to file a separate Global Income Tax Return in May. Understanding which path applies to you ensures you remain compliant with the National Tax Service (NTS) and maximize your available tax deductions.
Do I need to file a separate tax return?
Whether you need to take individual action depends primarily on your employment status and the types of income you earned during the calendar year. Most salaried workers do not need to file a separate return because their employer manages the reconciliation of taxes paid versus taxes owed.
The Year-End Settlement (Yeonmal Jeongsan)
The year-end settlement is the standard procedure for foreign workers who receive a monthly salary. Throughout the year, employers withhold a preliminary amount of income tax from each paycheck. At the end of the tax year, the actual tax liability is calculated based on the total annual income and eligible deductions. If too much was withheld, the employee receives a refund; if too little was withheld, the employee must pay the difference.
The Global Income Tax Return (Jonghap Sodeukse)
While the year-end settlement covers wage income, some residents must file a Global Income Tax Return. This is a comprehensive filing that aggregates all types of income. You will likely need to file this if you fall into any of the following categories:
- You have multiple sources of income (e.g., salary plus rental income or freelance earnings).
- You have opted for a flat tax rate rather than the progressive tax scale.
- You failed to complete the year-end settlement through your employer.
| Feature | Year-End Settlement | Global Income Tax Return |
|---|---|---|
| Who files? | Salaried employees | Multi-income earners or flat-rate opt-ins |
| Who handles it? | Employer (with employee input) | The individual taxpayer |
| Primary Deadline | Typically by the end of February | May |
| Purpose | Reconcile monthly withholdings | Aggregate all annual income sources |
How to complete the year-end tax settlement
The year-end settlement is mandatory for foreign workers regardless of their nationality or the length of time they have resided in Korea. The only exception is daily workers, who are excluded from this specific process.
- Gather Documentation: Throughout January and February, the NTS provides data on your spending and deductions. You may need to provide additional proofs for deductions not automatically captured by the system.
- Submit to Employer: Provide the necessary deduction claims and supporting documents to your company’s HR or accounting department.
- Final Calculation: The employer calculates the final tax for the year and informs you of the result.
- Adjustment: The difference is usually reflected in your February or March paycheck as either a refund or an additional deduction.
When and how to file a Global Income Tax Return
If you are required to file a Global Income Tax Return, the process is independent of your employer. This filing period typically takes place in May for the previous calendar year’s income.
Eligibility and Deadlines
The Global Income Tax Return must be completed in May. This is the window where you report all income earned from January 1 to December 31 of the prior year. It is critical to meet this deadline to avoid penalties for underpayment or late filing.
Steps for Individual Filing
- Verify Income: Access your total income records via the Hometax portal to ensure all dividends, interest, or business income are accounted for.
- Calculate Deductions: Determine which personal or professional deductions you are eligible for.
- Submit Return: File the return electronically via Hometax or visit your local district tax office.
- Pay or Receive Refund: After the NTS processes the return, you will either pay the remaining balance or receive a tax refund into your registered bank account.
Accessing NTS Hometax and official support
The National Tax Service (NTS) provides digital tools and direct communication channels to help foreign residents navigate these procedures without needing a professional accountant for simple filings.
Using the Hometax Portal
Hometax is the primary online platform for all tax-related activities in Korea. The NTS provides an English-language version of the portal to assist foreign residents. Through Hometax, you can:
- Check your withholding tax history.
- File the Global Income Tax Return.
- Request official tax certificates.
Note: Because terminology in the English menu can vary or change, it is recommended to cross-reference the portal with official NTS guides.
Contacting the Foreigner Help Line
For specific questions that cannot be resolved through the portal, the NTS operates a dedicated foreigner help line. You can call 1588-0560 for assistance in English. This line is particularly useful for clarifying which documents are needed for specific deductions or troubleshooting Hometax login issues.
Claiming tax benefits and deductions for foreigners
Foreign residents may be eligible for specific deductions that reduce their taxable income. One common area is the basic personal deduction for dependents.
Example: Spouse and Dependent Deductions
A foreign resident for tax purposes may be able to claim a basic personal deduction for a spouse who lives outside of Korea. For this to be applicable, the spouse’s annual income must not exceed KRW 1 million. For example, if a resident’s spouse remains in their home country and has no significant income, the resident can include them as a dependent to lower their taxable income.
Verification Requirements
Claims for deductions regarding family members living abroad are not automatically granted. You will likely be required to submit supporting documentation to verify the relationship and the income status of the dependent. Always check the current year’s NTS guide for the exact list of required certificates (such as marriage or birth certificates) and whether they need to be apostilled or notarized.
Frequently Asked Questions
I am a daily worker; do I still do the year-end settlement?
No. Daily workers are excluded from the standard year-end settlement process. You should consult the NTS or a tax professional to determine if you are required to file a Global Income Tax Return in May instead.
What happens if I miss the May deadline for Global Income Tax?
Missing the deadline can lead to late-filing penalties and interest on any unpaid tax amounts. If you realize you have missed the window, you should file a “late return” as soon as possible to minimize penalties.
Can I change my tax rate after the year-end settlement is done?
If you wish to change your tax treatment (for example, switching to a flat tax rate) or if you discovered a mistake in your deductions after the February settlement, you can correct this by filing a Global Income Tax Return during the May filing period.
Next steps for foreign residents
To ensure you are ready for the next tax cycle, take these three practical steps:
- Verify your Hometax access: Ensure you have a valid digital certificate (Joint Certificate or Financial Certificate) to log into the NTS English portal.
- Consult your HR department: Confirm that your company handles the year-end settlement and ask for a list of the specific documents they require from you.
- Organize your records: Keep a folder of all income statements and potential deduction proofs (e.g., medical expenses, insurance, or dependent certifications) throughout the year.