What is the 3.3%?
When paying freelancers who aren't employees (business income from personal services), the payer withholds income tax 3% + local income tax 0.3% = 3.3%. Many part-time jobs also withhold only this tax instead of the four social insurances.
How it's calculated
- After-tax amount = pre-tax amount × 0.967
- Pre-tax amount = amount you want ÷ 0.967
- Rounding: income tax rounded down below ₩10; local income tax is 10% of income tax
Other income 8.8%
One-off income like speaking or writing fees counts as other income: 22% after a 60% necessary-expense deduction. As a result, 8.8% of the payment is withheld. Payments of ₩125,000 or less per case aren't taxed.
May comprehensive income tax filing
The 3.3% is tax paid in advance. Your actual tax is settled in the comprehensive income tax return the following May; with low income, you usually get some back.
FAQ
If 3.3% is withheld, don't I pay social insurance?
You don't have workplace social insurance, but health insurance and national pension may be charged to you as a regional subscriber.