Definition
Korean withholding tax is an administrative mechanism where payers deduct tax upfront.
Covered income
- **Wages**: simplified tax table (~3–35%) - **Business income** (freelancer): 3.3% (3% income + 0.3% local) - **Interest/dividends**: 15.4% - **Lecture/writing fees**: 4.4% or 8.8%
Filing/remittance
- Monthly: payment × rate withheld - Remit to NTS by the 10th of the following month - Annual payment statements (businesses via Hometax)
Practical tips
- Clearly distinguish pre-tax vs post-tax in freelancer contracts - HR SaaS auto-calculates and files (Flex, Korean freee, etc.) - 연말정산 reconciles actual annual tax for employees