The 3.3% Freelance Tax in South Korea: What You Need to Know
A guide for independent contractors in South Korea navigating the standard 3.3% withholding tax and global income tax reporting.
Kartikeya Mishra
E-E-A-T Verified AI Engineer
Understanding the 3.3% Rule
If you are a freelancer (프리랜서) operating in South Korea without a registered business license (i.e., you don't have a Business Registration Number/사업자등록번호), companies paying you are legally required to withhold exactly 3.3% of your total invoice amount.
How is the 3.3% calculated?
It consists of two parts:
- 3.0% National Income Tax
- 0.3% Local Resident Tax
For example, if you invoice a client in Seoul for 1,000,000 KRW, the company will deduct 33,000 KRW and deposit 967,000 KRW into your bank account. The company sends that 33,000 KRW directly to the Korean National Tax Service (NTS).
Do I Still Need to File Taxes?
Yes. The 3.3% is just a prepayment (withholding tax). In May of every year, you must file your Comprehensive Income Tax Return (종합소득세) via the Hometax portal for the previous year's earnings.
If your total income is low and you have business expenses, your actual tax rate might be lower than 3.3%, meaning you will get a tax refund in June or July!
How to Invoice Korean Clients
When issuing an invoice as an unregistered freelancer in Korea, you do not issue a standard Tax Invoice (세금계산서) because you don't have a business number.
Instead, you provide a standard invoice outlining the gross amount. The client's accounting department handles the 3.3% deduction. To look professional and ensure there is no confusion, clearly state the Gross Amount (Total) on your invoice.
Use our Offline Invoice Maker to generate a clean, professional PDF outlining your services.