Korea tax guide
Bookkeeping Requirements in Korea for Foreign Freelancers
3.3% Freelancer Tax
Who this guide is for
- Foreign freelancers in Korea
- New sole proprietors
- Creators and consultants
- Businesses moving from expense rates to actual books
Quick Answer
Foreign freelancers carrying on business in Korea should maintain complete sales, expense, invoice, bank, and contract records even when tax was withheld at 3.3%. The required or beneficial bookkeeping method can depend on business type, prior-year revenue, filing classification, and available evidence.
Key points
- 3.3% withholding does not replace bookkeeping.
- Business and personal transactions should be separated.
- Valid evidence affects expense deductibility and VAT.
- Revenue thresholds can change bookkeeping obligations.
- Records should reconcile to returns and Hometax data.
Detailed explanation
Create a monthly close
Each month, record invoices and platform sales, reconcile bank deposits, classify expenses, attach evidence, review unpaid amounts, and preserve foreign-currency calculations.
Separate business from personal use
Use dedicated accounts and cards where practical. For mixed costs such as phone, home office, vehicle, or travel, document a reasonable business allocation and purpose.
Match the tax method
Actual bookkeeping, simplified books, and expense-rate methods are not interchangeable labels. Confirm legal eligibility and compare the tax, compliance, and evidence consequences.
Retain a connected file
Every return number should trace back to a ledger and source document. Store contracts, invoices, bank data, tax certificates, asset records, and filed returns with reliable backups.
Documents you may need
- Sales ledger and contracts
- Business bank and card statements
- Tax invoices and cash receipts
- Expense receipts
- Platform payout statements
- Asset register
- Prior tax returns
Common mistakes
- Recording only bank deposits
- Mixing personal and business spending
- Losing foreign-platform statements
- Claiming expenses without business purpose
- Choosing an expense-rate method without checking eligibility
When should you ask a tax professional?
Ask a qualified tax professional if you have income from several countries, business income, unclear tax residency, treaty questions, missing documents, late filing concerns, or a visa situation that depends on tax records. This site explains general patterns only and cannot review your personal facts.
FAQ
Do I need books if 3.3% was withheld?
Yes, you still need records to verify revenue, expenses, withholding, and the correct annual filing result.
Can bank statements replace receipts?
Usually not by themselves. They show payment but may not establish supplier, VAT evidence, or business purpose.
Should I use simple or double-entry books?
The answer depends on current legal thresholds, business category, prior revenue, and available incentives or penalties.
Official Sources to Verify
Check the tax year, eligibility conditions, and publication date in the official material before applying a rule. A link marked “Service portal” helps you find a service; it does not substantiate a particular rate or entitlement.