Guide to the 2019 Year-end Tax Settlement for Foreigners
- Issuance of Foreign Language Manual for Year-end Tax Settlement
for Non-English Speaking Foreigners -
□Foreign employees with domestic wage & salary income in 2019 should settle year-end taxes by the day they receive their salary for February this year.
○Year-end tax settlement is a process of finalizing the total amount of taxes to be borne by a wage & salary income earner. If the sum of the amount of monthly withheld tax is less than the amount of the final settled amount, the amount in shortage should be additionally paid.
-If the sum of the amount of monthly withheld tax is more, the amount in excess shall be refunded.
※ Foreigners’ year-end tax settlement: 573,000 foreigners, 783.6 bil. won (2018), 558,000 foreigners, 770.7 bil. won (2017)
□Foreign employees should settle year-end taxes in the same way as Korean citizens apply.
○It should be noted certain tax policies such as 19% flat tax rate and income tax reduction for engineers apply only to foreigners. Taxpayers are also required to be aware some deductible items such as housing funds, deposits for housing purchase savings, monthly cost for rental housing do not apply to foreigners.
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