A teacher employed by an academy or school, receiving monthly pay, is classified as wage income — the employer withholds via the simplified table and settles at year-end. A freelance instructor contracted separately by multiple institutions, paid per session, is classified as business income (personal services) — withheld at 3.3% (residents) or 20% (non-residents, absent a tax treaty) and reconciled through the May comprehensive filing.
Substance matters more than labels: even a contract that says "freelance" can be recharacterized as wage income if the teacher is in practice bound to fixed hours and a fixed workplace like an employee.
Signals: wage income vs. business income
Check for the treaty teacher exemption
Tax treaties with some countries exempt visiting teachers or professors from Korean income tax for a limited period (typically 2 years) while teaching or researching at a university or accredited institution. Instructors at private language academies are usually not covered, and the exact wording differs by treaty, so individual confirmation is essential.
Frequently Asked Questions
Related Topics
Who Must File a Global Income Tax Return, How, and By When
Whether you need to file, how to do it on Hometax, and the May filing deadline (with its exceptions).
Tax-Treaty Income Exemption for Visiting Teachers and Professors
Requirements and duration for the tax-treaty exemption available to visiting teachers and professors at accredited institutions.