Step-by-Step: Korean Taxes Made Easy for Foreign Freelancers
For foreigners working as freelancers in Korea, tax filing might seem overwhelming at first. But once you understand the basic steps and required documents, you’ll find it easier than expected. Plus, multilingual tax services are now more accessible than ever, reducing the language barrier.
This guide breaks down everything you need to know into simple, actionable steps—from business registration to tax deductions and refunds.
Step 1: Business Registration is Essential
If you’re earning freelance income in Korea, you must register as a business with the National Tax Service. Operating without registration may lead to penalties.
| Required Documents | Where to Submit |
|---|---|
| Alien Registration Card or Residence Card | Local Tax Office (in-person) |
| Passport | ID verification |
| Lease Agreement | Proof of address (home address allowed) |
| Business Registration Form | Available at tax office or online |
Once issued, your business registration certificate allows you to issue e-tax invoices via Hometax.
Step 2: Annual Income Tax Filing in May
Freelance income is classified as comprehensive income and must be filed annually between May 1–31 through the National Tax Service’s website: Hometax.
| Category | Documents Needed |
|---|---|
| Income | Invoices, payment records, withholding slips |
| Expenses | Receipts for transportation, equipment, subscriptions |
| Tax Withheld | Check on Hometax |
Hometax pre-fills many sections, making it beginner-friendly and fast.
Step 3: Track Expenses for Tax Deductions
Taxes are calculated based on income – expenses = taxable amount. Keeping track of legitimate business-related expenses is essential for reducing your tax liability.
| Deductible Item | Examples |
|---|---|
| Equipment | Laptop, microphone, camera |
| Transportation & Communication | Commute, phone, online subscriptions |
| Workspace | Home rent portion, utilities |
Keep all receipts and records organized throughout the year.
Step 4: Claim Your Tax Refunds
Clients often withhold tax (typically 3.3%) when paying freelancers. This withheld tax can be refunded during your income tax filing.
| Situation | How to Handle |
|---|---|
| Tax Withheld | Check Hometax and apply for refund |
| No Tax Withheld | Declare income and pay due tax |
Refunds can be significant, so review your records carefully!
Step 5: Consider Tax Services for Convenience
If filing feels overwhelming, use a tax agent or app that offers multilingual support. These services are affordable and reliable, especially for your first year.
| Service | Languages | Features |
|---|---|---|
| Expat Tax Accounting | English, Chinese | 1:1 support, freelance specialization |
| Tax Filing Apps | English options | App-based, Hometax integration |
The Simple Tax Process for Foreign Freelancers
Even as a foreigner in Korea, understanding the process—registering your business, filing taxes in May, and managing expenses—makes tax season manageable.
With proper documents, digital tools, and expert advice if needed, you can file confidently and correctly.
You’ve Got This—Korean Taxes Aren’t So Scary After All
Freelancer taxes in Korea don’t have to be stressful. Stick to the basics, track your work, and use available support.
Smart prep, clear records, and a bit of help go a long way in making tax season a breeze—even in a new country.