South Korea’s NTS seeks support for 3.3% to 2.2% freelancer withholding-tax cut

  • South Korea’s NTS is seeking lawmakers’ support for a personal-service withholding-tax cut from 3.3% to 2.2% next year.
  • For a single-person household earning 45 million won, annual withholding would fall by 495,000 won to 990,000 won.
  • The NTS identified 163.5 billion won in unclaimed refunds for 820,000 people and is offering fee-free recovery assistance.

South Korea’s National Tax Service is seeking National Assembly support for a plan to reduce the effective withholding rate on freelancers and other personal-service income earners from 3.3% to 2.2% next year. The proposal, included in the government’s August tax revision package, would lower the income-tax portion from 3% to 2%. For a single-person household earning 45 million won annually, withholding would fall to 990,000 won from 1.485 million won, increasing cash received during the year by 495,000 won, or about 41,000 won a month. The NTS is also notifying 820,000 people of 163.5 billion won in unclaimed refunds and warning that private refund services can charge 10% to 20% of recovered amounts.

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