Taxes for International Students in South Korea: What You Need to Know

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Taxes are probably the last thing on your mind when you are navigating a new country, a new language, and a new academic system. But understanding how Korean taxes work — especially if you have a part-time job or receive a scholarship — can save you real money through refunds you might not know you are entitled to, and keep you out of trouble with the National Tax Service (NTS).

This guide explains the Korean tax system from the perspective of an international student: what you owe, what you do not owe, how to file, and how tax treaties between Korea and your home country might reduce your obligations.

Do International Students Pay Taxes in Korea?

The short answer: it depends on your income source.

The Key Distinction: Tax Resident vs. Non-Resident

Your tax obligations depend on whether Korea considers you a tax resident:

• Resident: You have lived in Korea for 183 days or more in a calendar year, or you have a permanent domicile in Korea. You are taxed on Korean-source income.
• Non-resident: You have lived in Korea for fewer than 183 days. You are taxed at a flat rate on Korean-source income.

Most international students on D-2 or D-4 visas who stay for a full academic year are classified as tax residents for the year they exceed 183 days.

Part-Time Job Taxes

If you have a part-time work permit (활동허가) endorsed on your ARC, any income from employment is subject to Korean income tax.

How Withholding Works

Your employer is required to withhold taxes from your paycheck before paying you. The standard withholding works as follows:

For daily workers (일용근로자) — common for part-time student jobs:

• Daily income up to 150,000 KRW: 6% tax rate after a 150,000 KRW daily exemption
• In practice, most student part-time jobs pay below the daily exemption threshold, meaning little or no tax is withheld

For regular employees (근로자) on monthly contracts:

• Income tax is withheld based on a progressive scale
• Monthly income under ~1,500,000 KRW after deductions usually results in minimal tax
• The employer handles the withholding and reports it to NTS

Income Tax Rates (2026)

South Korea uses a progressive income tax system:

For most international students with part-time jobs, annual income falls in the 6% bracket. After the basic personal deduction (1,500,000 KRW) and standard deductions, many students owe very little or even receive a refund.

Additionally, there is a local income tax of 10% of the national income tax (so if your national income tax is 60,000 KRW, your local tax is 6,000 KRW).

Scholarship and Grant Taxation

Tax-Exempt Scholarships

The following scholarship payments are generally not taxable in Korea:

• Tuition waivers or tuition payments made directly to the university
• Government scholarships (GKS/KGSP, NIIED stipends)
• University-funded scholarships for living expenses
• Research grants that cover tuition and academic expenses

Taxable Scholarship Components

Some elements of scholarships may be taxable:

• Stipends paid in exchange for work (TA/RA positions)
• Excess living allowances beyond what NTS considers reasonable
• Awards or prizes that are not directly academic

In practice, most international students on full scholarships do not owe taxes on their scholarship funds. However, if your scholarship includes a TA or RA component, the income from those duties is taxable.

Tax Treaties: Your Secret Weapon

South Korea has tax treaties with over 90 countries. These treaties can significantly reduce or eliminate your Korean tax obligations. Here are some key provisions for students:

Countries with Student Tax Exemptions

Many tax treaties include a specific student article that exempts international students from Korean income tax on:

• Scholarships and grants
• Income from part-time work (up to a certain amount or duration)
• Remittances from abroad for maintenance, education, and study

How to Claim Treaty Benefits

To claim a tax treaty exemption, you need to:

1. Determine if your country has a treaty with Korea. Check the NTS website or ask your university's international office.
2. Obtain a Certificate of Tax Residency from your home country's tax authority (this proves you are a tax resident of a treaty country).
3. Submit the treaty benefit application to your employer (for employment income) or to the tax office (for other income) using NTS Form 72 (Application for Tax Reduction/Exemption under Tax Treaty).
4. Your employer adjusts withholding accordingly, or you claim the benefit when filing your tax return.

Do this early. If you do not file the treaty benefit application, your employer will withhold standard Korean tax rates. You can still claim the treaty benefit later through a tax return, but getting the withholding adjusted upfront is easier.

How to File a Tax Return

Year-End Tax Settlement (연말정산)

If you work for a Korean employer (including TA/RA positions), your employer handles the year-end tax settlement in January or February:

1. Your employer provides you with a tax settlement form (근로소득세 연말정산 신고서).
2. You submit documentation for deductions (medical expenses, education expenses, insurance premiums, charitable donations).
3. Your employer calculates the final tax and either deducts the balance from your paycheck or refunds the overpayment.

Individual Tax Filing (종합소득세 신고)

If you have income from multiple sources or need to file on your own, the annual tax return deadline is May 31 of the following year:

1. Visit the HomeTax website (www.hometax.go.kr) — English interface available.
2. Log in with your ARC number (you may need to register first).
3. Follow the guided filing process to report your income and deductions.
4. Submit the return electronically.
5. If you are owed a refund, it will be deposited to your Korean bank account within 2–3 months.

Alternatively, you can visit your local tax office (세무서) for in-person assistance. Bring your ARC, income documents, and any relevant receipts.

Tax Refund: Getting Your Money Back

Many international students are entitled to a tax refund if:

• More tax was withheld from your paycheck than you actually owe
• You qualify for tax treaty exemptions that were not applied at the source
• You have deductible expenses (medical, education, donations) that reduce your taxable income

Common Deductions for International Students

How to Claim a Refund

1. Collect all receipts throughout the year — medical bills, NHIS payments, tuition receipts.
2. Use the NTS simplified year-end settlement service (국세청 연말정산 간소화 서비스) at www.hometax.go.kr. This system automatically aggregates your deduction data from hospitals, pharmacies, and insurance companies.
3. Submit the year-end settlement through your employer or file individually by May 31.
4. Refund arrives in your Korean bank account within 2–3 months after filing.

Leaving Korea: Final Tax Obligations

When you finish your studies and leave Korea:

1. File a final tax return before departing if you have outstanding income to report. You can file early (before May 31) if you are leaving Korea.
2. Notify your employer so they can process your year-end settlement.
3. Claim any remaining refunds — provide your Korean bank account details. If you are closing your bank account, ask the tax office about alternative refund methods (some can transfer to foreign accounts, but this is complex).
4. Keep copies of all Korean tax documents — you may need them for tax filing in your home country.

Double Taxation Prevention

If you paid taxes in Korea and your home country also taxes your worldwide income, the tax treaty typically provides a foreign tax credit. This means you can deduct the taxes paid in Korea from your home country tax obligation, preventing double taxation on the same income.

Common Mistakes to Avoid

1. Assuming scholarships are always tax-free. While most scholarships are exempt, TA/RA stipends are not. Check with your university.

2. Not claiming tax treaty benefits. If your country has a treaty with Korea, you could be leaving money on the table. File the treaty benefit application early.

3. Not filing a tax return. Even if your income is low, filing a return ensures you receive any refund you are owed. Many students miss out on refunds because they do not file.

4. Losing receipts. Medical bills, NHIS payments, and education expenses are all deductible. Keep everything organized.

5. Working without a work permit. Income from unauthorized work is still taxable, and you also face immigration penalties. Always get your work permit first. For details on work authorization, see our part-time job rules guide.

6. Ignoring local tax. National income tax and local income tax are separate. When budgeting, remember the local tax adds approximately 10% on top of your national tax.

Key Tax Deadlines

Resources

• National Tax Service (NTS): www.hometax.go.kr (English available)
• NTS English helpline: 126 → Press 1 for English
• Tax treaty lookup: NTS website → International Tax → Tax Treaties
• University tax assistance: Many universities provide free tax filing assistance for international students during filing season. Ask your international office.

Final Thoughts

Korean taxes for international students are more manageable than they seem. Most students working part-time owe very little in taxes, and the combination of personal deductions and tax treaty benefits often results in a refund. The key is to stay organized, keep your receipts, file your tax treaty application early, and take advantage of the free assistance available through your university and the NTS.

Understanding taxes also protects you. An employer who does not withhold taxes may be violating Korean law. If you notice that no taxes are being deducted from your paycheck, ask your employer about it — it could indicate that you are being paid informally, which creates problems for both you and the employer.

For more practical guides on living in Korea as an international student, explore our complete guide collection.

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