If you work as a freelancer, May income tax filing is unavoidable. But early preparation helps maximize tax savings and avoid unexpected payments. Here's how to prepare systematically starting from March.
Who Must File
Anyone with income beyond regular employment — freelancers, sole proprietors, side-income earners, and rental income recipients — must file comprehensive income tax.
Understanding the 3.3% Withholding
When freelancers receive payment, 3.3% (3% income tax + 0.3% local tax) is withheld. This is prepaid tax that gets settled during May filing. Many freelancers actually get refunds.
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Freelancer Tax Calculator
Calculate your expected tax after 3.3% withholding
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Deductible Expenses
Common deductible expenses include office rent, phone/internet bills, transportation, equipment purchases (laptops, software), education costs, and client entertainment. Always keep receipts.
Tax Credits for Freelancers
National pension and health insurance payments are fully deductible. Pension savings (up to 9M won combined with IRP) provide 13.2-16.5% tax credits. Donations also qualify for credits.
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Income Tax Calculator
Calculate your estimated income tax
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Preparation Timeline
- March: Organize previous year's income/expenses, gather receipts, request missing tax invoices
- April: Calculate total income/expenses, estimate taxes, consult tax advisor if needed
- May 1-31: File and pay comprehensive income tax via HomeTax or through a tax advisor
Five Tax-Saving Tips
Keep thorough expense records with card payments or tax invoices. Open a pension savings account for up to 1.485M won in credits. Join the Yellow Umbrella Deduction for up to 5M won deduction. Separate business and personal bank accounts. Consider a tax advisor if income exceeds 48M won.
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Freelancer Income Calculator
See your net income and tax at a glance
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