19% Flat Tax for Foreign Employees in South Korea

Calculate if you should elect the 19% flat tax rate instead of progressive rates. See your potential tax savings instantly.

Available for up to 20 years | 2026 Tax Year

Compare Your Tax Options

Enter your income to see which option saves you more money

Progressive Rates

Up to 49.5%
6-45% national + 10% local
VS

19% Flat Tax

20.9%
19% national + 1.9% local

Your Tax Comparison Results

Annual Income KRW 150,000,000
Progressive Tax (National + Local) KRW 40,766,000
19% Flat Tax (National + Local) KRW 31,350,000
You Save with Flat Tax KRW 9,416,000/year
Recommendation: At KRW 150,000,000, the 19% flat tax saves you approximately 23% on income tax. Electing the flat tax is recommended.

Break-Even Analysis: When Does Flat Tax Save Money?

The 19% flat tax becomes beneficial at approximately KRW 130-150 million income. Above that, savings increase dramatically.

Income (KRW)
Tax Comparison
Progressive
Savings
50,000,000
KRW 6.6M
-KRW 3.8M
80,000,000
KRW 14.8M
-KRW 1.9M
100,000,000
KRW 21.2M
+KRW 0.3M
130,000,000
KRW 31.7M
+KRW 4.5M
150,000,000
KRW 40.8M
+KRW 9.4M
200,000,000
KRW 59.8M
+KRW 18.0M
300,000,000
KRW 101.2M
+KRW 38.5M

Am I Eligible for the 19% Flat Tax?

Check if you meet the requirements for the special flat tax rate

✅ You ARE Eligible If:

  • You are a foreign national (non-Korean)
  • You started/will start work in Korea by Dec 31, 2026
  • You work for an unrelated employer
  • You previously held Korean citizenship but renounced it

❌ You Are NOT Eligible If:

  • You are a Korean citizen
  • You work for a "related party" company
  • Your income is from business (not employment)
  • Your income is from pensions or investments
Important Trade-off: When you elect the 19% flat tax, you forfeit ALL deductions and credits. This includes: personal deductions, dependent deductions, credit card spending deductions, insurance deductions, education expenses, donations, and child tax credits. The flat tax is applied to gross employment income.

Frequently Asked Questions

What is the 19% flat tax for foreigners in South Korea?

The 19% flat tax is a special tax regime allowing foreign employees to pay a flat 19% national income tax (plus 1.9% local tax = 20.9% total) instead of progressive rates that can reach 49.5%. It's designed to attract foreign talent and simplify tax compliance for expatriates working in Korea.

How long can I use the 19% flat tax?

You can elect the 19% flat tax for up to 20 years from your first day of work in Korea. Prior to 2023, this was limited to 5 years, but recent tax reforms extended the benefit significantly. The 20-year period runs from the first employment date to the end of the tax year containing the 20th anniversary.

How do I apply for the 19% flat tax?

You can apply in two ways: 1) Submit an application to your employer to have monthly withholding calculated at the flat rate, or 2) Elect the flat tax when filing your annual tax return. The election is made annually - you can switch between flat and progressive rates each year based on which is more beneficial.

What happens to social insurance contributions?

Social insurance contributions (National Pension, Health Insurance, Employment Insurance) are separate from income tax and still apply regardless of which tax method you choose. The 19% flat tax only affects income tax - it does not change your social insurance obligations.

Can I switch between flat tax and progressive tax?

Yes, you can elect the flat tax or progressive tax each year. This flexibility allows you to choose the most beneficial option based on your income that year. However, once you make the election for a given year (either through monthly withholding or annual filing), you cannot change it for that year.

Data Source: National Tax Service (NTS) Korea

Verified for 2026 | Article 18-2 of the Income Tax Act | Last updated: January 2026

This calculator provides estimates based on official tax rates. For personalized advice on the flat tax election and your specific situation, consult a qualified Korean tax professional.

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