What is 3.3% Withholding?
When Korean freelancers receive payment for services, the payer withholds 3.3% as advance tax — 3.0% income tax + 0.3% local income tax. You may receive a refund or owe additional tax when filing your annual income return in May.
Frequently Asked Questions
Q: What makes up the 3.3% tax?
The 3.3% rate consists of 3% income tax and 0.3% local income tax. The paying business withholds this amount before remitting payment to the freelancer.
Q: Is it mandatory to file the May comprehensive income tax return?
If you have freelance income, you must file a comprehensive income tax return each May. After deducting business expenses, you may receive a refund of part of the 3.3% withheld, making the filing beneficial in most cases.
Q: Can I add up multiple income entries?
Yes, the annual summary feature lets you enter multiple freelance payments and view the total withheld and net amount for the year — useful when preparing your comprehensive income tax return.
Q: Can I save the calculation results?
Tap the copy button on the result screen to copy the details to your clipboard. You can then paste them into a notes app or spreadsheet for your records.
Q: What is the difference between business income and other income?
Regularly and repeatedly provided services are classified as business income, while one-time services are classified as other income. Both are subject to 3.3% withholding, but tax treatment may differ at year-end filing — consult a tax professional for details.