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Freelancer Tax for Foreigners 2026

D-10 / F-2 / F-4 / F-6 freelancers — recover the 3.3% withheld from your invoices.

In Korea, when a business pays a freelancer, they withhold 3.3% (3% income tax + 0.3% local tax) upfront. This applies to foreign freelancers on visas allowing self-employment (F-2 / F-4 / F-5 / F-6 / D-10 job-seeking). You then file in May to recover overpayment — average refund KRW 500K-2M.

Which visas allow freelancing?

F-2 (long-term), F-4 (Korean ethnic), F-5 (permanent), F-6 (marriage), D-10 (job-seeking with employer permit). E-2 teachers can do extra teaching ONLY with employer + immigration permission. D-2 students need part-time work permit (limited hours).

How 3.3% withholding works

Client pays you KRW 1,000,000 invoice → deposits KRW 967,000 (3.3% withheld). They report payment to NTS. You file in May, declare income + expenses, recover overpayment.

Average refund

KRW 30M annual freelance income → KRW 990K withheld → refund typically KRW 500K-1.5M after deductions (medical, donations, education, rent).

Deductible business expenses

Laptop / equipment (business %), home office (proportional rent), internet/phone (business %), business meals (with receipts), client meeting transport, professional books/courses, software subscriptions.

Simple vs Double-entry bookkeeping

Under KRW 75M revenue = simple bookkeeping (no need for full ledger). Over KRW 75M = double-entry recommended (hire tax accountant). Standard expense ratio (60-80% by industry) auto-applied for small freelancers.

Frequently Asked Questions

Q. I am on E-2 visa — can I freelance?

A. Only with employer permission + Immigration approval for side gigs. Unauthorized freelancing = visa violation. Switch to D-10 or F-2 if going full freelance.

Q. Do I pay VAT as a freelancer?

A. Most freelance services (writing, translation, teaching, design for individuals) = VAT exempt. Services to businesses or product sales may need VAT registration.

Q. Health insurance and pension as foreigner freelancer?

A. Mandatory regional National Health Insurance + National Pension (unless your country has totalization agreement — USA, Germany, Japan, etc. — letting you opt out).