#Income Tax
Related posts · 15 posts
Tax Review Reports for Large Sole Traders in Korea — 1.5bn, 750m or 500m Won in Revenue, File by 30 June
Income Tax Act Article 70-2 and Decree Article 133 require sole traders with revenue of 1.5 billion, 750 million or 500 million won or more, by sector, to file with a tax review report between 1 May and 30 June of the next year.
Simple Expense Rate Thresholds in Korea — Last Year Under 60m, 36m or 24m Won; Freelancers at 36 Million
Income Tax Decree Article 143(4) applies the simple expense rate to new businesses or those whose previous year's revenue is under 60, 36 or 24 million won by sector, if this year's revenue is also under the simple-books line. Freelance personal services sit in the 36 million group.
Simple Books or Double-Entry in Korea — Last Year Under 300m, 150m or 75m Won; a Books, Expense Rate and Review Checker
Income Tax Decree Article 208(5) treats new businesses, or those with last year's revenue under 300m, 150m or 75m won by sector, as simple-books taxpayers. The same sector groups set the simple expense rate and tax review lines.
Yellow Umbrella Deduction in Korea — 6 Million Won up to 40m of Business Income, 2 Million Over 100m, Other Income If Cancelled (Calculator)
Article 86-3 of Korea's Restriction of Special Taxation Act deducts Yellow Umbrella (small business mutual aid) contributions from business income, capped at 6, 5, 4 or 2 million won by business income. Property rental income is taken out by its share.
Year-End Tax Settlement When You Leave a Job in Korea — Done with Your Final Pay, Only Your Own Deduction Without a Declaration, May Return If No New Job
Article 137 of Korea's Income Tax Act has leavers settled when paid for the month they leave, applying only the personal basic deduction and standard credit without a declaration. A new employer in the same year re-settles (Art. 138); otherwise the May return is the window.
Why Korean Employees Skip the May Tax Return — Wage Income Only, With Two Employers or a Missed Year-End Settlement Outside the Exception
Article 73 of Korea's Income Tax Act says people with wage income only, retirement income only, public pension income only and certain others need not file a final tax base return. The exception does not apply to pay from two or more employers, or where the employer did not withhold through the year-end settlement.
Late Tax Return Penalty Relief in Korea — 50% Within a Month, 30% Within 3, 20% Within 6, on a 20% Non-Filing Penalty
Article 48 of Korea's Framework Act on National Taxes cuts the non-filing penalty (20% of tax due) by 50% if a late return is filed within a month, 30% within three months and 20% within six. The late-payment penalty of 22/100,000 a day is not reduced, so pay with the late return to stop it growing.
Korean Interim Income Tax Calculator — Not Half of Last May
The statute adds last November's interim payment too, then halves the sum. Under 500,000 won nothing is collected.
Korea's Tax Calendar — What's Due in Every Month
Comprehensive real estate tax runs 1-15 December; property tax takes land in September, buildings in July, and splits only housing. Under ₩200,000 it is settled in July alone — and the car tax prepayment ceiling is 10%, not 5%.
Rent Turns on 1.2 Billion, Jeonse on 300 Million — Two Different Provisions
The last multiplier in the deemed-rent formula — the term-deposit rate is 31 per 1,000, that is 3.1%. It was spelled out not in the Decree but in Article 23(1) of the Enforcement Rule.
Korea VAT Explained 2026 — General vs Simplified, Filing & Refunds
The 104 million won line is not in the Act — VAT Act art.61 sets only a band from 80 million to 130% of it, delegating the figure to the Decree.
Korean Comprehensive Income Tax Calculator (2026) — Where the 3.3% Refund Turns
The number 3.3% appears in no statute: it is Article 129 of the Income Tax Act (3%) multiplied by Article 103-13 of the Local Tax Act (10% of that tax). The statutory basis for the pension premium deduction is now filled in too.
Freelancer 3.3% Tax Refund in Korea — 3% x 1.1, and Two Simple Expense Rates: 64.1% and 49.7%
We opened the provisions themselves. The 3.3% turns out to be 3% x 1.1, and the 8.8% takes three provisions multiplied together.
Side Income in Korea: Must You File in May? The Provision Lists Only Who Need Not
Income Tax Act art. 73 lists only who need not file. Its subparagraph 4 sends you to the Decree — which turns out to name just three trades.
Korea's Comprehensive Income Tax 2026 — Verified Against the NTS's Own Example
We recomputed the tax office's published worked example and matched it to the won. Plus what really counts toward the 15-million-won pension line.