10 Tax Saving Tips for Freelancers (Korea)
2025-10-01
1.Keep All Business Receipts
Save receipts for all work-related expenses. Laptops, software, office supplies, and education costs can all be deducted as business expenses.
2.Deduct Home Office Expenses
If you work from home, you can deduct rent, electricity, and internet costs proportional to your workspace.
3.Register as a Business
Registering as a simplified or general taxpayer allows you to claim VAT refunds and more business expense deductions.
4.Manage Tax Filing Deadlines
Never miss the comprehensive income tax filing in May. Filing on time provides tax credit benefits.
5.Deduct National Pension & Health Insurance
If you're not an employee, your national pension and health insurance premiums are tax deductible.
6.Use Debit Cards Over Credit Cards
Debit cards and cash receipts offer higher deduction rates than credit cards (30% vs 15%).
7.Utilize Pension Savings
Contributing to pension savings funds or IRP can get you tax credits up to 7 million won annually.
8.Long-term Installment Funds
Joining income-deductible long-term funds offers 40% deductions up to 6 million won per year.
9.Consult a Tax Professional
Getting help from tax experts ensures you don't miss any deductible items.
10.Calculate Quarterly Taxes
Calculate and prepare for your estimated taxes quarterly to avoid year-end surprises.