Overview

Withholding Tax in South Korea requires the payer to deduct tax from income at the time of payment and remit it to the government. Rates vary by income type: employment income follows simplified tax tables, business income (personal services) is 3.3%, interest and dividends 15.4%, and other income 22%.

Formula

Employment: per simplified tax table (80%, 100%, or 120% options). Business (personal services): 3% income tax + 0.3% local = 3.3%. Interest/Dividends: 14% + 1.4% local = 15.4%. Other Income: (Income - Expenses) x 20% + 2% local = 22%. Retirement: per retirement income simplified table.

How to Use

1. 1Select the income type (employment, business, interest/dividends, other, retirement).
2. 2Enter the payment amount.
3. 3If applicable, enter additional details (number of dependents, expenses, etc.).
4. 4Click Calculate to see withholding income tax and local income tax.

Tips

• ✔Employment withholding can be set at 80%, 100%, or 120% of the simplified table amount, settled at year-end.
• ✔Freelancer 3.3% withholding is credited against final comprehensive income tax.
• ✔Other income generally has a 60% expense ratio, with 22% withheld on the net amount.
• ✔Withholding tax must be filed and paid by the 10th of the month following payment.
• ✔Small employers (20 or fewer employees) may file and pay semi-annually.

FAQ