Residents and non-residents face very different deduction eligibility for the same wage income. Residents get the wage income deduction, personal deductions (self, spouse, dependents), special deductions (insurance premiums, housing funds, etc.), and tax credits (child, pension, special credits) — identical to Korean employees.
Non-residents still get the wage income deduction, but for personal deductions they may claim only the basic and additional deduction for themselves — not for a spouse or dependents. Among special deductions, social insurance premiums (like health insurance) still apply, but housing-fund and credit-card deductions do not.
Deductions non-residents cannot claim
What happens if you become a resident mid-year
If you shift from non-resident to resident during the year, the income earned after becoming a resident is settled using resident-level deductions at year-end. Knowing your exact transition date is essential to avoid missing deductions you're actually entitled to.
Frequently Asked Questions
Related Topics
Dependent (Personal) Deductions
Who qualifies as a dependent, the income and residency tests, and the KRW 1.5 million per-person deduction.
How Year-end Settlement Works: The Wage Income Tax Calculation Flow
A step-by-step walk-through of how Korea calculates your final year-end tax, from gross pay down to the amount actually owed or refunded.