Freelancer Withholding Tax Calculator
Enter the payment amount or the net amount received, and the 3.3% withholding tax will be calculated for you.
Fill in your details on the left and press Calculate to see your result here.
How do I calculate withholding tax from a payment amount?
How do I calculate the payment amount from a net amount received?
The 3% business-income withholding rate (3.3% including local income tax) follows Article 129 (Withholding Tax Rate) of Korea's Income Tax Act.
Freelancer Withholding Tax Calculator FAQ
Why is 3.3% withheld from my payment?
Income earned from providing personal services continuously and repeatedly, like freelance work, is classified as business income. Under Articles 127 and 129 of the Income Tax Act, the party paying this business income must withhold 3% income tax, plus a local income tax equal to 10% of that withheld amount (0.3%), for a combined 3.3%.
Can I get the withheld tax back later?
Yes. Withheld tax isn't your final tax bill — it's tax paid in advance. When you file your comprehensive income tax return the following May, your actual income and various deductions are reconciled, and if the withheld amount was more than what you actually owe, you get the difference refunded.
Why do I sometimes see 8.8% withheld instead of 3.3%?
One-off income like a single lecture fee or manuscript fee that isn't continuous or repetitive is classified as miscellaneous income rather than business income. A 60% deemed necessary expense is applied, and the remaining 40% is taxed at 22%, working out to 8.8% of the payment amount — a different income category from a freelancer's business income (3.3%).
Do freelancers need to enroll in the 4 major social insurances?
Freelancers whose income is withheld as business income generally aren't subject to the payer's social insurance enrollment. However, depending on income level, you may need to enroll yourself as a local (self-employed) subscriber for National Pension and National Health Insurance, even without a separate place of business.
Do I need to issue a separate tax invoice?
For personal-service business income subject to withholding, the withholding receipt (payment statement) issued by the payer usually serves this purpose, and the service is often VAT-exempt. That said, this can vary by industry and contract type, so it's safest to confirm the exact treatment with a tax accountant.
This calculator uses the standard 3.3% business-income withholding rate (3% income tax + 0.3% local income tax) for reference only. The actual amount settled in your comprehensive income tax return may differ depending on income deductions and tax credits. For an exact figure, please consult a tax accountant or Hometax.