Freelance in Korea and 3.3% disappears from every payment. Many people assume the tax is settled — but that's just a deposit withheld in advance. Come May, a lot of freelancers get money back.
Refund or bill? Enter your income and expenses in the Korean income tax calculator to find out.
What the 3.3% is
Precisely, it's 3% income tax + 0.3% local income tax. The payer withholds it and remits it to the National Tax Service. At the May filing it counts as tax already paid.
The key point: that 3.3% is a flat rate that ignores your income size and expenses entirely, so it rarely matches your real tax.
Why refunds happen
Tax applies to income after expenses, not your gross receipts.
- ₩30,000,000 gross → at the 64.1% simplified expense rate, net income about ₩10,770,000
- Minus the ₩1,500,000 basic deduction → taxable base about ₩9,270,000 → the lowest 6% bracket
- Tax including local income tax: about ₩610,000
- Already withheld at 3.3%: ₩990,000 → refund of roughly ₩380,000
Higher income pushes you into higher brackets, so beyond roughly ₩50M a year you often owe more instead.
Expenses — what decides your refund
- Simplified expense rate — a set share of income counted as expenses without bookkeeping. For personal services (instructors, designers, developers, delivery), 64.1% is typical, available when prior-year income falls under a threshold (generally ₩24M).
- Standard expense rate — once income exceeds that, around 19.4% for personal services, which raises tax sharply.
- Actual expenses (bookkeeping) — better when real spending beats the rate, but you need documentation.
If your income is growing, start collecting records now. Use a dedicated card and account, and keep receipts for work-related spending (equipment, phone, transport, rent) so you have options later.
Filing is simpler than you think
- When: May 1–31 every year
- Where: the NTS Hometax site or the Sontax mobile app
- If you receive a pre-filled notice, the NTS has already done the math — a phone menu or a few taps finishes it.
- Enter a refund account and payment usually lands around June or July.
Worth knowing
- Small income still files — business income with 3.3% withheld must be reported regardless of amount. Skip it and you forfeit the refund and risk penalties.
- Employees with side income file it combined with salary, which can raise the bracket.
- National pension and health insurance premiums are deductible — don't leave them out.
- Missed years can be reclaimed via an amended return within five years.
FAQ
Why file again if 3.3% was withheld?
Because it isn't your actual tax — just an interim withholding. Real tax requires applying expenses and deductions, which happens in May.
How long does a refund take?
Usually one to two months after filing, though the May rush can delay it.
Do I need an accountant?
If income is modest and the simplified rate applies, filing yourself is fine. With larger or more complex income, professional advice can pay for itself.
The 3.3% isn't tax — it's money on deposit. Filing in May is how many freelancers get part of it back.
This is general information, not tax advice. Expense-rate eligibility and final tax depend on your business type, income and circumstances — confirm with Hometax or a tax professional.
