Korea's year-end tax settlement compares the income tax withheld from a foreign employee's monthly salary with the final tax due, producing either a refund or an additional payment. The result depends heavily on submitting both simplified-service records and missing evidence, then applying every eligible income deduction and tax credit.
2025 tax-year schedule and basic documents
- The source states that the HomeTax Simplified Service opened on January 15, 2026, with corrected final data available from January 20.
- Prepare the simplified-service PDF or electronic file and your employer's income and tax credit declaration.
- Ask payroll or HR for the internal deadline, which differs by employer.
Records that may be missing
Monthly rent, some education costs, donation receipts, and purchases such as glasses or contact lenses may not appear automatically, so check whether you must obtain evidence from the provider. An income deduction reduces taxable income before the rate is applied; a tax credit reduces calculated tax directly. Foreign employees may need separate analysis for tax residency, the flat-tax option, or overseas dependents, so confirm personal eligibility with payroll or a tax professional.
The basic calculation
If tax already withheld exceeds the final tax due, you receive a refund; if it is lower, you pay the difference. Do not rely on simplified data without checking missing evidence.