Working and Business > Income Taxes

Monthly Withholding Tax


Monthly Withholding Tax

Employers are required to deduct withholding tax from each employees salary each month. The withholding tax is calculated based on the Simplified Tax Withholding Table issued by the National Tax Service.

The employer must remit to the NTS the taxes withheld for each employee by the 10th day of the following month. Each employee (foreign employees included) should receive a receipt of the withholding tax from her/his employer. Note that employers who have less than 20 employees can, with the permission of the tax office, pay the taxes withheld twice a year instead of every month - the tax will still be deducted from each pay (twice a month if the employee is paid twice a month, etc.).

The rate of the withholding tax varies according to the Simplified Tax Table - may be 3.3% or 4.4% or more. The reconciliation occurs with the year-end tax settlement - 10 March for employees (10 May for self-employed or free lancers). 

Making up the short-fall: Employeers often begin working on employee's tax settlements in January. If they notice that not enough withholding has been deducted for an employee, they will make the reconcialiation in the employee's February pay. Consequently, the money receive in February is sometimes less than usual to make up the difference.

For more information or to ask specific questions, you can contact the NTS via:
- International Tax Resource Management Office of the NTS at (82-2-397-1444).
- Foreign taxpayer advocate service - questions asked online
- English 'helpline' - 1588-0560 (82-2-1588-0560)


K4E Note: The above is based on information on the National Tax Service website. It is intended as general information only. For more details, readers should visit the NTS website.
Amendments to the tax laws/rules are often adopted in January of the year in which they will take effect. We do our best at K4E to ensure that the information we provide is accurate and up-to-date.  Should you note any errors or ommissions, please let us know at info@korea4expats.com.

 

Image Source

Last Updated on 2015-01-27


In the same header
Annual Income Tax Payment Automatic Tax Calculation Service
Claimable Deductions Easy Guide for Foreigners' Year-end Tax Settlement
Foreign Nationals Exempted from Taxes Income Taxes Overview
Monthly Withholding Tax On-line Tax Filing
Resident and Non-resident Taxpayers Services for Foreign Taxpayers - NTS
19th SIWFF - Short Film and Video Competition, Deadline 24 Feb 2017Seoul International Women's Film Festival short film/video competition. Entry deadline 24 February.
At the Movies This Week - SeoulClick here for a list of English language/subtitled movies and where they are playing in Seoul. For...
Traditional Music Class for Foreigners, Apply 1 Feb-3 Mar, Class 4 Mar-27 May 2017, Seocho-gu, SeoulLearn to play Korean musical instruments (gayageum, janggu or Haegeum) this Spring in a 12-week course.
ESWS 5th Benefit Concert, Fri 24 Feb 2017, Yeongdeungpo-gu, SeoulKBS Symphony Orchestra conducted by Yeol Levi and accompanied by Rafael Aguirre on guitar.
Advertisement
Taejon Christian International School
A Plus Dental
JZ Associate
Seoul Foreign School, K-12 English School, Seodaemun, Seoul
I want to convert
Cocoonfice, Business Center, Gangnam-gu, Seoul
Korea International School-KIS, K-12 English Seoul, Pangyo, Gyeonggi-do
KoreanClass101 - An online Korean learning system
EnglishClass101 - An online English learning system
Helpul telephone numbers seoul korea
Directory