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Self-Employed Tax Guide for Foreigners 2026

Cafés, restaurants, retail, online sellers, D-8 startups — your annual tax calendar.

Self-employed foreigners in Korea (D-8 investor, F-2, F-4, F-5, F-6) handle VAT (twice a year) + Income Tax (May) + Quarterly Local Tax + Monthly 4 Insurances. This guide consolidates the 1-year tax calendar.

1-Year tax calendar

Jan: VAT 2H filing | Feb-Mar: Employee year-end settlement | May: Annual Income Tax | Jul: VAT 1H filing | Monthly: 4 Insurances + Withholding tax for staff.

Simplified vs General Taxpayer

Sales under KRW 80M = Simplified (1.5-4% VAT, no input credit). Over KRW 80M = General (10% VAT, full input credit).

Top 5 deductible expenses

(1) Rent + utilities, (2) Interior/equipment depreciation, (3) Staff wages, (4) Marketing (Instagram ads, Naver Smart Place ads, platform fees), (5) Inventory/supplies (must have 세금계산서 tax invoice).

Small business grants (Korean ID required for most)

Most grants require Korean Resident Registration. F-2 / F-4 / F-5 / F-6 with 외국인등록증 (Foreign Resident Card) qualify for many. D-8 has limited grant access. Check sbiz.or.kr (small business).

Frequently Asked Questions

Q. D-8 investor visa — minimum investment?

A. KRW 100M minimum capital. Must operate the business — passive investment not allowed. Hire 1+ Korean employee for visa stability.

Q. 4 insurances for foreign employees?

A. National Pension + Health Insurance + Employment Insurance + Workers Comp — mandatory for all employees regardless of nationality. Some pension exemptions via totalization treaty.

Q. Foreign-owned business closing — tax obligations?

A. File final VAT return (next month 25th after closing date), file final Income Tax in May, and notify tax office. Cleared tax status required to leave Korea long-term.