Tax agency urges foreign workers to take advantage of exclusive benefits for year-end tax filing

A forieign laborer harvests water parsley at a farm in Busan's Gijang County, Dec. 15, 2025. Yonhap

The National Tax Service (NTS) said Wednesday that foreign workers in Korea are encouraged to take advantage of exclusive benefits for the year-end tax filing, which runs through February.

The tax agency estimates that 700,000 foreign nationals are eligible to file taxes, including spouses of Korean nationals, highly skilled engineers and native English teachers.

Foreigners married to Korean citizens can receive a 40 percent income tax deduction on contributions to long-term housing savings, if their annual salary does not exceed 70 million won ($48,300) and their spouse does not yet own a home. The maximum tax deduction is limited to 3 million won per year.

“This benefit was previously available only to heads of households and did not apply to foreigners who cannot be registered as such under the Resident Registration Act, but it has now been expanded,” the NTS explained.

Engineers with a bachelor’s degree or higher and overseas R&D experience are eligible for a 50 percent income tax reduction for 10 years from the start of their employment in Korea.

Native English teachers may be exempt from income tax in Korea under tax treaties with their home countries if they meet the treaty’s requirements for teaching or research income.

“However, since the specific conditions for exemption vary by treaty, it is essential to check the text of the corresponding tax treaty,” the NTS said.

For workers in general, they can opt for a flat 19 percent income tax rate instead of the standard progressive rates.

This option is available for up to 20 years starting from their first year of employment, except for those who owns 30 percent or higher shares of the company where they are employed.

For more information, foreigners can visit the NTS English website to download the “Easy Guide” and other manuals available in English, Chinese and Vietnamese.