Comprehensive income tax (종합소득세)
What freelancers and sole proprietors in Korea owe each May: revenue minus expenses and deductions, taxed at progressive rates of 6–45%.
KRW
%
Actual expenses if bookkeeping; simplified rates are 40–90% by industry
KRW
Basic allowance 1.5M + pension + other deductions
KRW
How it works
Net income = revenue − expenses. Tax base = net income − deductions. Progressive rates of 6–45% (8 brackets) apply, minus a KRW 70,000 standard credit. Local income tax adds 10%.
Freelancers who had 3.3% withheld have already paid 3% income tax; if that exceeds the computed tax, the difference is refunded in May.
Assumptions
- 2025 tax-year brackets
- Only the KRW 70,000 standard credit applied
- Penalties and special filing regimes not modeled
- Regional health insurance premiums are separate
FAQ
Do foreign freelancers file this?
Yes. Anyone with Korean-source business income files by May 31, regardless of nationality, unless taxed under a treaty exemption.