Taxes
There are different types of personal income determination in South Korea. Information in this page includes only information about Employment Income and payroll withholding taxes. For more detail and personal tax advice, we recommend to consult with a tax professional.
Tax Exemption:
Employees can be eligible for tax exemption if s/he has not worked in Korea before and holds teaching position (or E-1 visa) in Mason Korea. The tax exemption and period of exemption depend on the tax treaty between South Korea and the employee’s country of tax residency.
Flat Rate:
Foreign employees who will start to work in Korea no later than 31 December 2026 are able to apply for a flat income tax rate of 19% (excluding local income tax) on their employment income rather than the normal progressive income tax rates.
The flat tax rate is applicable for a 20-year period, starting with the first day of work in Korea to the end of the tax year immediately preceding the year in which the 20-year anniversary of the first day of work falls.
If employee chooses flat tax rate, s/he will need to submit application to Korean tax authorities.
Progressive Rate:
Employees who are not qualified for neither tax exemption nor flat tax rate, they are categorized under the progressive tax rate. For calculating estimates of your total withholdings (including taxes and social insurance), please click here for downloading the excel calculator and enter annual salary in USD tab for USD salary and KRW tab for KRW salary.
Taxable Items:
- Tuition support MK for employee’s dependents
- Tuition waiver provided by MK to the employee
- Home leave airfare for employee and dependents
- Relocation airfares (arrival and departure) for employee and dependents
- Housing maintenance fees that MK covers for those living off-campus IGC housing
- Visa costs covered by MK.
Resources:
National Tax Services (click here)
NTS Year-end Tax Settlement (click here)
MK Year-end Tax Reconciliation Guide (click here)