The Ultimate Guide to May Income Tax Filing in Korea: Industry-Specific Tips and Tax-Saving Strategies
May is a crucial month for all individuals in Korea with additional income beyond regular salaries.
Filing your Comprehensive Income Tax Return properly is essential to avoid unexpected tax penalties or audits.
In this guide, we will walk you through the essentials of income tax filing, industry-specific cautions, and practical tax-saving tips, based on legal references and real-world cases.
1. Overview of May Comprehensive Income Tax Filing
- Filing Period: May 1st to May 31st, 2025
- Who Must File:
Freelancers, business owners, landlords, and individuals with financial or other additional income - Official Reference:
- Income Tax Act Article 70 (Final Return of Global Income)
- Framework Act on National Taxes Article 45 (Amended Return and Request for Correction)
📌 Tip!
Late filing after May 31st incurs a 20% non-filing penalty.
Always submit your tax return on time!
2. Key Cautions When Filing
| Sales Omission | Report all card sales and cash receipts |
| Proper Expense Documentation | Secure tax invoices and official receipts |
| Utilize All Deductions | Medical expenses, education fees, donations, etc. |
| Meet the Deadline | Avoid penalties with timely filing |
📌 Tip!
A simple card slip may not be sufficient to claim expenses.
Always keep official receipts and tax invoices.
✅ Real Case
A freelancer missed claiming medical expenses and lost a refund of KRW 500,000.
Later recovered it via the May final tax return.
3. Industry-Specific Filing Cautions
Freelancers
- Caution: Only work-related expenses are deductible.
- 📌 Tip!
Business relevance is key.
Personal expenses like family trips are not deductible.
Business Owners
- Caution: Cash sales must not be omitted; POS data should match.
- 📌 Tip!
Separate personal and business bank accounts to avoid scrutiny.
Landlords
- Caution: Report deemed rental income if deposit exceeds KRW 100 million.
- 📌 Simulated Example:
- Deposit KRW 200 million × 2.5% ÷ 2 = Deemed income of KRW 2.5 million
4. Essential Tax-Saving Strategies
- Deduct home office expenses
- Employ family members appropriately (with 4 major insurances)
- Annual depreciation for property and equipment
📌 Tip!
Consult a tax professional to find hidden deductions applicable to your case.
Conclusion
Accurate and timely income tax filing is your best defense against future audits and penalties.
Prepare carefully, maximize your deductions, and stay safe from tax risks.
"May Comprehensive Income Tax Filing Summary"
- Filing Period: May 1 – May 31
- Target Groups: Freelancers, Business Owners, Landlords
- Key Cautions: Avoid sales omission, secure expense documentation
- Industry-Specific Advice: Freelancer (business-related expenses only), Business owners (cash sales reporting), Landlords (deemed rental income check)
- Tax-Saving Strategies: Home office deduction, family salary, asset depreciation
Thank you so much for reading my post!
I truly hope the information here makes your life a little easier, whether you're in Korea or anywhere around the world!