Who can choose the flat tax rate (19%) for foreign workers?

A foreign executive or employee (not a daily worker) who first started working in Korea before December 31, 2026 can choose it. If you choose it, the 19% flat tax rate can apply to your earned income for tax years ending within 20 years from the day you first started working. It is used instead of the basic tax rates (6~45%).

Requirements checklist

• You are a foreign executive or employee — daily workers are not eligible.
• You first started working in Korea before December 31, 2026 — if you first start working after this date, you cannot use this provision.
• The income is for a tax year that ends within 20 years from your first day of work.
• You do not work for a related company — you cannot work for a company with a family relationship or a management control relationship. However, a foreign-invested company that receives tax reductions is an exception and is not excluded.
• You do not hold Korean nationality as of the last day of the relevant tax year.

⚠️ Things to note

• You must apply for it to take effect. At year-end tax settlement or when filing comprehensive income tax, attach the 'Application for Flat Tax Rate for Foreign Workers' to the Earned Income Earner's Income and Tax Credit Deduction Report and submit it to your company (the withholding agent) or the tax office.
• If you use the flat tax rate, you cannot get tax exemptions, deductions, reductions, or tax credits. Health insurance and employment insurance premiums paid by your company are also not tax-exempt.
• This income is not added to your comprehensive income.
• It is not always better for you. It depends on your salary and deduction items. Use the year-end tax settlement simplified service (연말정산 간소화 서비스) to calculate your expected tax and compare.
• If you worked in Korea before January 1, 2014, January 1, 2014 is treated as your first day of work. If you left Korea before 2013 and came back in 2014 or later, the day you started work after coming back is the standard.

Check your situation once more with the tax office or the National Tax Service (국세청) (NTS Tax Help Center 126).