Calculate the 3.3% withholding tax (3% income tax + 0.3% local income tax) for freelancers and independent contractors in Korea. Compute net income from a contract amount, or reverse-calculate the required contract amount from your desired take-home pay.
Choose 'Contract → Net Income' to calculate take-home pay from a contract amount. Choose 'Net Income → Contract' to reverse-calculate the contract amount needed for your desired take-home pay.
Enter the contract amount or your desired net income as a number. Example: for a 1,000,000 KRW lecture fee, enter 1000000.
Income tax (3%), local income tax (0.3%), total tax (3.3%), and net income are calculated automatically. Monthly and annual projections are also shown.
If you want a net income of 1,500,000 KRW, enter 1,500,000 in reverse mode. The calculator shows the exact contract amount to invoice your client.
A. 3.3% is the sum of income tax 3% and local income tax 0.3% (which equals 10% of income tax). For a contract amount of 1,000,000 KRW: income tax = 30,000 KRW, local income tax = 3,000 KRW, total tax = 33,000 KRW, net income = 967,000 KRW.
A. Individual business owners (freelancers) receiving business income are subject. This applies when you provide services independently without an employment relationship — lecture fees, manuscript fees, advisory fees, outsourcing fees, etc. Note: employees with employment insurance (근로소득) use a different income tax table, not 3.3%.
A. The 3.3% is a prepayment concept, settled during the annual comprehensive income tax filing each May. If your annual business income is low, you may receive a refund. If high, you may need to pay more. Korea's income tax rates range from 6% to 45% depending on taxable income, so actual tax liability can differ from 3.3%.
A. Yes. When filing your comprehensive income tax return, you can deduct necessary business expenses: work equipment (computers, monitors), office supplies, education costs, internet bills, business travel, software subscriptions, etc. Keeping all receipts and documentation is essential.
A. Divide your desired net income by 0.967. For example, to receive 1,500,000 KRW net: 1,500,000 ÷ 0.967 ≈ 1,551,191 KRW should be invoiced as the contract amount. Use this calculator's 'Net Income → Contract' mode for automatic calculation.
A. Tax-exempt freelancers issue a regular invoice (계산서) rather than a VAT tax invoice (세금계산서). If registered as a VAT-liable business, a tax invoice is required. If annual revenue is below 24,000,000 KRW, you may qualify as a simplified taxpayer (간이과세자) with a reduced tax burden.
Korea's 3.3% withholding tax for freelancers is a system where businesses or individuals paying for services withhold 3.3% of the payment amount as tax upfront. Of the 3.3%, 3% is income tax and 0.3% is local income tax (10% of income tax). This system is designed to prevent tax evasion by freelancers and service providers, while ensuring early collection of tax revenue. The withholding agent (payer) must report and remit the withheld taxes to the tax office monthly or semi-annually. From the freelancer's perspective, understanding the exact net income received after tax withholding is critical for accurate financial planning.
Korea's 3.3% withholding tax for freelancers is a system where businesses or individuals paying for services withhold 3.3% of the payment amount as tax upfront. Of the 3.3%, 3% is income tax and 0.3% is local income tax (10% of income tax). This system is designed to prevent tax evasion by freelancers and service providers, while ensuring early collection of tax revenue. The withholding agent (payer) must report and remit the withheld taxes to the tax office monthly or semi-annually. From the freelancer's perspective, understanding the exact net income received after tax withholding is critical for accurate financial planning.
The 3.3% withholding is not a final tax — it is a prepayment. The actual tax is settled through the comprehensive income tax filing each May. If annual business income is low or business expenses are high, a refund is possible. For example, a freelancer with 10,000,000 KRW annual income may have an effective tax rate as low as 6% after basic deductions and expense deductions, allowing a refund of the difference from the 3.3% withheld. Conversely, those with higher income (effective rate above 24%) will need to pay additional tax. Diligently claiming all business-related expenses (equipment, education, communications) during tax filing is the key to minimizing tax liability.
Systematic management of freelance income can reduce your tax burden and improve financial health. First, keep all receipts for business-related expenditures: work equipment (computers, monitors, software), online courses and seminar fees, books and subscription services, internet and communication costs. Second, open a dedicated business account to easily track income and expenses. Third, if annual income exceeds 24,000,000 KRW, consider registering as a VAT-liable business. Fourth, joining the Yellow Umbrella Fund (소기업·소상공인 공제) allows premium payments to be income-deducted, providing a tax benefit. Fifth, consult a tax accountant or the National Tax Service's taxpayer protection officer to develop a personalized tax strategy.