Convenient year-end tax settlement for 500,000 foreign workers~🤓🤩😉

Foreign workers, like Korean workers, must do year-end tax settlement of earned income until they are paid salaries for February this year.

The same goes for multicultural families who work.

Excluding daily workers, there are 505,000 foreign workers who have to do year-end tax settlement in Korea.

The National Tax Service announced that if a foreign worker submits an ‘application for providing simplified data for year-end tax settlement’ to the company and goes through the confirmation process, the simplified data will be provided to the company in bulk, just like domestic workers.

Foreign workers must submit the ‘income and tax deduction report’ and supporting documents to the company responsible for withholding tax, and additionally pay or receive a refund of the final income tax calculated on the salary received for one year.

In Korea, the tax refund following year-end settlement is called the 13th month's salary, as there are far more cases in which tax is returned.

When foreign workers do year-end tax settlement in Korea, they can choose one of two methods: general year-end tax settlement and application of a flat tax rate of 19%.

Most foreign workers are eligible for a special tax rate of 19%, but only for up to 5 years.

However, when the 19% flat tax rate is selected, the regulations on deduction, reduction, and tax credit cannot be applied.

In general, receiving a flat tax rate benefit can be advantageous to foreign workers, but this can also vary from person to person, so you need to check.

Make it easy for foreigners to understand year-end tax settlement

Companies can utilize foreign language materials provided by the National Tax Service so that foreign workers who are not familiar with Korean can prepare year-end tax settlement without difficulty.

In addition, the National Tax Service is operating ▲'Foreigners only consultation line' (1588-0560) ▲'Year-end tax settlement English guide(Easy Guide) ▲'Year-end tax settlement foreign language manual(English, Chinese, Vietnamese) so that foreign workers can consult on year-end tax settlement in English.

In particular, this year, year-end tax settlement videos with subtitles in English, Chinese, and Vietnamese are provided on the National Tax Service's YouTube channel and English website so that taxpayers can quickly check only the necessary information.

The National Tax Service said, “We will continue to improve the year-end tax settlement help service for foreigners so that foreign workers can do year-end tax settlement more easily and conveniently.”

▲ 일반 연말정산과 19% 단일세율을 적용한 연말정산을 비교한 표. 2억원의 고소득 외국인의 경우 일반 연말정산을 하면 오히려 세금을 추가로 내야하지만 단일세율을 적용하면 630여만원을 돌려받는 것을 알 수 있다. <출처=럭키 화인 네이버 블로그>