Foreigners earning salary income in Korea are eligible for year-end tax settlements and refunds, just like Korean citizens. However, deductions and procedures differ based on residency status, making it essential to understand the rules and prepare accurately.

Foreigners who stayed in Korea for over 183 days are classified as residents and can claim broader deductions. Those who stayed less than 183 days are non-residents and face limited deductions, such as restrictions on medical and education expenses. Residency status directly affects refund amounts.

Major deductible items include medical expenses, credit card usage, education costs, donations, and rent. For foreigners, some of these are often not automatically reflected in the simplified tax service. Therefore, it is crucial to check and manually add missing items on Home Tax (https://www.hometax.go.kr).

If you are currently employed, your company handles the settlement—you only need to submit your Home Tax documents. Refunds are usually paid between February and March. If you left your job, you must file a comprehensive income tax return in May via Home Tax.

Missed a refund? You can file an amended return for up to five years by uploading supporting documents on Home Tax.

Be cautious: choosing the 19% flat tax rate excludes deductions. Also, medical and education receipts often require manual submission.

Multilingual guides are available at

https://www.nts.go.kr/english/main.do

https://nts.go.kr/english/na/ntt/selectNttList.do?bbsId=1076&mi=10790

For English assistance, call 1588-0560.

Year-end tax settlement is a right foreigners shouldn’t miss—check carefully and claim what you deserve

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