Korea 3.3% freelancer tax calculator — take-home and what to invoice
On a fee of ₩3,000,000, Korea's 3.3% withholding leaves ₩2,901,000 (₩90,000 income tax and ₩9,000 local income tax). Enter the take-home you want and the page works out the fee to invoice; a one-off fee such as a lecture can be switched to the 8.8% rule. Foreign freelancers who live in Korea have the same 3.3% withheld.
An estimate of what is withheld at payment. The final tax is settled in the May income tax return, where it can come out higher or lower.
How the 3.3% is worked outHow this works
What the 3.3% is
When a business pays a freelancer in Korea for work done as a continuing activity, it must withhold income tax at 3% of the fee (Income Tax Act Articles 129(1)3 and 144) and local income tax at 10% of that income tax (Local Tax Act Article 103-13). Together that is 3.3% of the fee, and the payer files it for you.
Each tax drops anything under 10 won: the Treasury Funds Management Act (Article 47) does this for national tax and the Local Accounting Act (Article 55) for local tax. So a fee of 1,234,567 won has 37,030 won income tax (3% is 37,037.01) and 3,700 won local tax withheld, leaving 1,193,837 won. The rule that small amounts of tax under 1,000 won are not collected does not apply here: the decree (Article 149-3) excludes personal services supplied continuously, so even a 10,000 won fee has 300 + 30 won withheld.
When it is 8.8% instead
A one-off job done without employment — a single lecture, a review, judging, a manuscript fee — is usually other income rather than business income. For those kinds of pay the Enforcement Decree (Article 87, item 1-2) deems 60% of the fee to be expenses; the tax is 20% of the remaining 40% (Article 129(1)6), and the local tax 10% of that. That is 8% + 0.8% = 8.8% of the fee: a 1,000,000 won fee leaves 912,000 won.
If what remains after the 60% is 50,000 won or less for the payment, no tax is charged (Article 84, item 3), so a one-off fee up to 125,000 won is paid in full. Real expenses above 60% can also be deducted; this page uses the 60%. Which kind your pay is depends on the facts of the work, not on the label in the contract; if in doubt, ask the payer which way they withhold.
From the take-home back to the fee
Choose “Take-home → fee” and enter what you want to receive. Dividing by 0.967 gets close, but the 10-won cuts make the true answer a little different, and one more won of fee can even lower the take-home by a few won. So the page tries every fee in a narrow range around that estimate and shows the smallest fee whose take-home reaches your figure.
Several fees can leave the same take-home. To receive 2,901,000 won, for example, the smallest fee is 2,999,980 won, and 3,000,000 won leaves the same. A fee a few won above the smallest can leave a little less, so if you would rather invoice a round figure, check it with “Fee → take-home” first. The page also says whether the take-home is exactly your figure.
Foreigners, and what this page leaves out
Nationality does not change the rate. A foreigner who lives in Korea and is paid as a freelancer has the same 3% and 0.3% withheld as a Korean. Someone who is not a Korean tax resident is under a separate rule for non-residents (Income Tax Act Article 156, with tax treaties), which this page does not calculate.
What is withheld is a prepayment. The year's tax is settled in the comprehensive income tax return in May of the next year, where you may pay more or get some back. What you type is calculated in this browser only and is not sent anywhere; the site records only that the tool was used.
I want 3,000,000 won in hand. What should I invoice?
3,102,370 won. Income tax is 3% of it, 93,071.1 won, cut to 93,070 won; local income tax is 9,300 won; exactly 3,000,000 won is left. Dividing by 0.967 alone gives 3,102,379, which also works but is not the smallest. Choose “Take-home → fee” to do this for any amount.
Is it 3.3% or 8.8%?
3.3% for pay from work you do again and again as a freelancer (business income). 8.8% for a one-off job without employment, such as a single lecture or a manuscript fee (other income): 60% of it counts as expenses and 22% is taken from the rest. A one-off fee up to 125,000 won is not taxed.
I am a foreigner working freelance in Korea. Is it the same 3.3%?
Yes, if you live in Korea: nationality does not change the rate, and the payer withholds the same 3% and 0.3%. If you are not a Korean tax resident, the non-resident rules (Income Tax Act Article 156 and tax treaties) apply instead, which this page does not calculate.