What Is Income Tax Prepayment in South Korea?
Every year, as Novemberapproaches,
South Korea’s income tax prepayment
raises questions for many taxpayers.
This system requires you to pay
part of your income tax for the first half of the year in advance,
by November 30. Payment
must be completed by that deadline.
The government uses this system
to spread out taxpayers’ payment burden.
Your local tax office sends you a bill,
so be sure to check the details carefully.
Key Facts: Payment Deadlines and Installment Rules
You can check your income tax prepayment
and pay it easily through Hometax.
If the amount exceeds KRW 10 million (about $7,350),
installment payments can help ease the burden.
|
Category |
Key Details |
|
Payment Deadline |
November 30 |
|
Installment Eligibility |
More than KRW 10 million |
|
Hometax |
Payment, Bills & Refunds menu |
Depending on the amount of tax due,
installment payments let you defer part of the balance
until January of the following year.
Who Is Exempt from the Prepayment Requirement?
Not every business owner
is required to make this advance payment. Those who started a new business in 2026,as well as
those who closed their business before the first half of the year,
and people with only certain types of income, such as interest or wages,
are excluded.
Self-employed artists, athletes,
and insurance solicitors may also qualify
for exemptions based on the nature of their business income.
There are several exemption categories, so check
your own circumstances first.
Business Slowing Down? File an Estimated Tax Return
If sales fell sharply in the first half of the year
and your estimated tax falls below 30%of the existing benchmark amount,
filing an estimated tax return
may reduce your tax bill.
Without a filing, you must pay
the amount shown on your bill. If business
has been slow, submitting a returnis
essential. Even if the estimated amount is less than $368,
you must file to have the bill canceled.
How to Arrange Installments or Request a Payment Extension
If the tax bill is too large to pay at once,
consider arranging installment payments.
This option is available for amounts over KRW 10 million,
and you can handle the process easily
through Hometax.
If financial difficulties make it hard to pay on time,
you can also ask your local tax office
for a payment deadline extensionby submitting an application
to postpone the due date.
Extensions are not automatic,
so applying before the deadline is essential.
Frequently Asked Questions
Q. How can I check my bill if I haven’t received it?
Log in to Hometax or Sontax, its mobile app,
and open the Payment, Bills & Refunds menu.
There, you can check your income tax prepaymentamount
online.
Q. Do I have to file an estimated tax return?
This filing applies when business performance has fallen significantly from the previous year
and the estimated amount is below 30% of the benchmark.
If you want the billed tax amount
adjusted, filing is required.
Q. How do I arrange installment payments?
If your advance tax bill exceeds KRW 10 million,
select the amount you want to defer
when making your payment,
then pay the remaining amount to complete the process.
