South Korea 3.3% withholding calculator
Enter a gross contract value or desired net amount to calculate the South Korea 3.3% business-income withholding with income tax and local tax separated. Recheck current official rules before payment or filing.
Input
This estimate applies South Korea Income Tax Act Article 129 3% rate for withholding-target business income plus 0.3% local income tax. Withholding is not final tax; recheck classification and current official rules before payment or filing.
Result
Enter a KRW amount to see South Korea withholding and net pay.
- Gross contract value
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- Net amount
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- Business income tax 3.0%
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- Local income tax 0.3%
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- Total withholding 3.3%
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How South Korea 3.3% business-income withholding works
South Korea Income Tax Act Article 129 sets a 3% income tax rate for withholding-target business income. With 0.3% local income tax (10% of income tax), the total withholding rate is 3.3%.
Withholding does not determine final tax. Recheck current official rules, income classification, and contract terms before payment or filing.
Confirm it is withholding-target business income
The 3.3% model assumes the payment is classified as withholding-target business income in South Korea.
Do not apply this estimate to employment income or other income categories.
- Confirm the payment's nature
- Confirm income classification
- Compare contract and payment statement
Calculate the 3% income tax
Income Tax Act Article 129 specifies 3% for withholding-target business income.
On gross KRW 1,000,000, income tax is KRW 30,000.
Separate the 0.3% local income tax
The Local Tax Act requires special collection of 10% of income tax as local income tax, which is 0.3%.
Recheck current rates in official South Korea sources.
Read net pay as 96.7%
The model subtracts 3.3% from gross and displays 96.7% as net.
VAT and separate deductions are excluded.
- Check gross KRW
- Check 3.3% withholding
- Check estimated net KRW
Reverse from desired net KRW
Divide desired net by 0.967 to estimate gross contract value.
This arithmetic does not determine income classification.
- Enter desired net KRW
- Review division by 0.967
- Confirm gross KRW and rounding
Compare withholding and net by contract size
At KRW 3,000,000 gross: income tax KRW 90,000, local tax KRW 9,000, total withholding KRW 99,000, net KRW 2,901,000.
At KRW 5,000,000: total withholding KRW 165,000, net KRW 4,835,000. At KRW 10,000,000: total withholding KRW 330,000, net KRW 9,670,000.
At KRW 30,000,000: total withholding KRW 990,000, net KRW 29,010,000. Withholding scales proportionally with the contract amount.
- KRW 3m: withholding 99,000 → net 2,901,000
- KRW 5m: withholding 165,000 → net 4,835,000
- KRW 10m: withholding 330,000 → net 9,670,000
- KRW 30m: withholding 990,000 → net 29,010,000
VAT 10% and 3.3% withholding are different
VAT is a 10% indirect tax on goods and services, while 3.3% withholding is income tax deducted when paying for personal services. They differ in purpose and taxable base.
When paying a registered business, you receive a VAT invoice and do not apply 3.3%. When paying a freelancer without business registration, you withhold 3.3% and VAT is separate.
This calculator covers only 3.3% withholding; VAT is not included.
Tax treatment differs by business registration
Paying a freelancer without business registration: withhold 3.3%, file a withholding statement, and the freelancer files global income tax the following May.
Paying a registered business: receive a tax invoice and settle VAT separately. The 3.3% withholding does not apply.
Even for the same service, verify the provider's registration status before the contract to determine the correct tax treatment.
- No registration → 3.3% withholding
- Registered → tax invoice + VAT
- Same service, different tax treatment
Withholding is settled in annual global income tax filing
The 3.3% withheld is a prepayment. Final tax is determined during global income tax filing the following May. Annual business income minus deductible expenses is taxed at progressive rates.
If total withholding exceeds final tax, the difference is refunded. For example, if annual gross is KRW 24,000,000 (withholding KRW 792,000) and final tax is KRW 500,000, you receive a KRW 292,000 refund.
The filing period is May 1 to May 31 each year. You can file electronically via Hometax or delegate to a tax accountant.
- Withholding = prepaid tax
- May filing = final settlement
- Withholding > final tax → refund
- Withholding < final tax → additional payment
Check KRW rounding
Results round to the nearest KRW.
A payer may use a different truncation order.
Read the KRW 1,000,000 example
Income tax KRW 30,000, local tax KRW 3,000, total withholding KRW 33,000.
Estimated net is KRW 967,000.
Know what is excluded
VAT, social insurance, expenses, and final filing results are not calculated.
Check contract and payment statement separately.
- VAT is separate
- Social insurance is separate
- Expenses and final filing are separate
Recheck current official rules
Sources were checked on 2026-08-22.
Recheck Income Tax Act Articles 129 and 70, and Local Tax Act Article 103-13 before payment or filing.
- Current Income Tax Act
- Income classification and contract terms
- Official guidance at payment or filing
South Korea 3.3% calculator FAQ
What makes up 3.3%?
South Korea Income Tax Act Article 129 sets 3% for withholding-target business income, plus 0.3% local income tax (10% of income tax).
What is the net from KRW 1,000,000?
Under the 3.3% assumption, withholding is KRW 33,000 and estimated net is KRW 967,000.
What gross gives KRW 967,000 net?
Divide the desired net by 0.967, giving KRW 1,000,000.
Does withholding finish my tax filing?
No. Withholding is preliminary; South Korea final tax is determined during annual global income tax filing in May.
Does this include VAT?
No. It only estimates business-income withholding in KRW.
Why can the paid amount differ by a few KRW?
This tool rounds to the nearest KRW. A payer may use a different truncation method.
Does every freelancer use 3.3%?
No. Only withholding-target business income qualifies. Employment income and other income use different rates.
How is the 3.3% handled when filing global income tax?
The withheld amount is credited as prepaid tax during annual filing. If total tax is less, a refund is possible.
Does 3.3% apply to registered businesses?
Generally no. The 3.3% rate applies to withholding-target business income, typically personal services without business registration.
Where can I check official rules?
Check current South Korea Income Tax Act Articles 129 and 70, and Local Tax Act Article 103-13 at the Korea Legislation Research Institute.
South Korea primary law
Sources checked 2026-08-22. Based on South Korea Income Tax Act Articles 129 and 70, and Local Tax Act Article 103-13. The 0.3% local tax equals 10% of income tax; recheck current official rules before payment or filing.