South Korea · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
AI-drafted, editorially reviewed. Confirm specifics with the official authority.
When this country treats you as a tax resident
Domicile or a 183-day abode = resident. A foreign resident with 5 years or less in Korea over the past 10 is taxed on foreign-source income only when it is paid in or remitted to Korea.
- Primary test
- Composite test
- Day threshold
- 183 days
How days are counted: Domicile (jusoji) or 183-day abode (geosoji)
Also makes you resident
- 5-of-10 rule: <5 of past 10 yrs in KR = non-permanent
Tax authority: nts.go.kr
Tax residency is decided separately from immigration status — these tests can make you a tax resident whatever visa you hold, and leaving a visa behind does not by itself end them.
Count your days against this rule Compare residency tests across countries
South Korea's taxes are run by the National Tax Service (NTS): income tax, corporate tax and VAT, filed via Hometax. Residents are taxed on worldwide income, with a local income tax added on top.
South Korea's taxes are administered by the National Tax Service (NTS): income tax, corporate tax and VAT, filed via the Hometax system. Residents are taxed on worldwide income.
- The NTS administers income tax, corporate tax and VAT via Hometax.
- Tax residents are generally taxed on worldwide income.
- VAT applies to most goods and services at a flat standard rate.
- 1
Determine your residency
You are generally a Korean tax resident if you have an address or 183+ days in Korea; residents are taxed on worldwide income, with rules for foreigners’ foreign-source income.
- 2
Get a tax reference
You use your resident registration number or a foreigner registration/tax number; the National Tax Service (NTS) operates the Hometax system.
- 3
Understand the taxes that apply
Identify global income tax (progressive), the local income tax surtax, VAT for businesses, and the four social insurances.
- 4
Do the year-end settlement
Employees complete a year-end settlement (yeonmal jeongsan) in which the employer reconciles withheld tax; a flat-rate option may apply to some foreign workers.
- 5
File a global income return if required
File a global income tax return in May if you have other income or are self-employed.
- 6
Pay, keep records and get advice
Pay any balance, keep records, and get advice on the flat-rate option and foreign-income rules.
- Residency determined (address / 183 days)
- Tax reference (resident/foreigner registration number)
- Applicable taxes identified (global income tax, local surtax, VAT, four social insurances)
- Year-end settlement (yeonmal jeongsan) or flat-rate option
- Global income return in May if required
- Deductions claimed
- Records kept
- Advice on flat-rate option / foreign income
- National Tax Service (NTS)
National tax authority.
Frequently asked questions
Am I a Korean tax resident?
Generally if you have a domicile or stay 183+ days in Korea; residents are taxed on worldwide income, though some rules ease this for short-term foreign residents.
What is Hometax?
The NTS online portal for filing and paying most taxes, including the year-end settlement for employees.
Is there a local income tax?
Yes — a local income tax is added to national income tax, so the effective rate is slightly higher.
Government portals
- Government of Korea — Korea's integrated government portal — policy, administrative services, e-government
- Korea Immigration Service (HiKorea) — Visas, residence status changes, work permits, and alien registration in Korea
- National Tax Service (NTS) — Korean income tax, corporate tax, VAT filing; annual comprehensive tax return for foreigners (May); foreign taxpayer incentive lookup