Complete Guide to Korean Comprehensive Income Tax for Freelancers 2026
Everything South Korean freelancers and SME owners need to know about Jonghabsodeukse (종합소득세): tax rates, the May 31 deadline, deductible expenses, VAT registration thresholds, and how to file on Hometax.
Disclaimer: This article is for general informational purposes only and does not constitute tax advice. Please consult a licensed tax professional or the Korea National Tax Service (NTS) for guidance specific to your situation.
Freelancing in South Korea: Why Tax Filing Matters
South Korea's freelance economy is booming. Whether you're a designer, developer, content creator, or consultant, if you earn income outside regular employment, you must file a Jonghabsodeukse (종합소득세 — Comprehensive Income Tax) return every year by May 31. Unlike salaried employees, freelancers must calculate, declare, and pay their own taxes.
What Is Jonghabsodeukse?
Comprehensive Income Tax aggregates all personal income: business, employment, rental, dividend, interest, and pension income. Freelancers primarily deal with saeop sodeuk (사업소득 — business income). Key features: Korean residents are taxed on worldwide income; progressive rates 6%–45% plus 10% local income tax surcharge (combined 6.6%–49.5%); annual return covers January 1–December 31, filed the following May via Hometax (홈택스).
2026 Tax Rates
- Up to KRW 14 million: 6% (combined 6.6%)
- KRW 14M–50M: 15% (16.5%)
- KRW 50M–88M: 24% (26.4%)
- KRW 88M–150M: 35% (38.5%)
- KRW 150M–300M: 38% (41.8%)
- KRW 300M–500M: 40% (44%)
- KRW 500M–1B: 42% (46.2%)
- Over KRW 1 billion: 45% (49.5%)
Key Deadline: May 31, 2026
The filing deadline for 2025 income is May 31, 2026. File via Hometax, which auto-imports income reported by clients. Clients who pay you generally withhold 3.3% at source — this is credited against your annual tax liability.
Expense Deductions
Freelancers below the income threshold can use the simplified expense ratio (단순경비율 — 60–90% of gross revenue). Higher earners should track actual expenses for better outcomes. Common deductible expenses: home office rent, equipment, software, internet/phone (business portion), professional development, client entertainment, travel, platform fees.
Tools like Denpyo let you photograph receipts and invoices so AI automatically extracts amounts and categories — so when May arrives, your expense report is ready. Use Denpyo's free Tax Savings Estimator to calculate your potential savings.
VAT Registration
Revenue exceeding KRW 30 million requires VAT registration (10%). File VAT returns twice yearly: July 25 (Jan–Jun period) and January 25 of the following year (Jul–Dec period). Below KRW 30M, simplified VAT taxpayer status applies (1.5–4% of revenue).
National Pension and Health Insurance
As a freelancer you pay both portions: National Pension 9% of income (capped monthly) and Health Insurance ~7.09%. Both are deductible, reducing your taxable income.
Official Resources
Summary
- File Jonghabsodeukse by May 31, 2026 on Hometax
- Rates 6.6%–49.5% including local income tax
- Clients withhold 3.3% at source — credited at year-end
- Deduct all legitimate business expenses; track receipts year-round
- Revenue over KRW 30M → VAT registration required
- National Pension (9%) and Health Insurance (~7%) mandatory but deductible
Track expenses, maximize deductions
Denpyo scans your receipts and finds tax savings automatically.
