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u/OliverYongsanDad
3d ago

Got walloped on last year's Korean tax — F-6 with side tutoring + Aussie writing, how to plan?

Right mate, second year on F-6 and the first May tax filing surprised me — turned out I owed way more than expected because I had freelance tutoring income that the school wasn't withholding. I'd rather not get walloped again next year.

My situation: F-6, part-time at an international school (they withhold tax monthly), plus freelance tutoring on the side that's all paid into my Korean account direct, plus a small bit of writing for an Aussie company that pays into my Aussie account.

Two questions:

  1. The freelance Korean income — am I supposed to pay tax quarterly or monthly, or just sort it all out in May? Last year I just put it all in May and got a nasty bill.
  2. The Aussie writing income — is that taxable in Korea? Australia treaty says I can claim back what I paid to ATO if I'm Korean tax resident. But how does this actually work in practice?

Anyone done this without paying a fortune to an accountant?

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2 replies
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u/MarieUni10yr
Verified · 10-year resident · Uni teacher·2d ago

Hi, been doing this for 10 years now so let me share what I've actually learned, not what the official websites say.

Korean freelance income (your school + tutoring):
- School withholding is fine, that's settled monthly via your paycheck. It's a down payment on your annual tax bill.
- Freelance tutoring with no withholding — this is what catches people. You're supposed to either (a) issue 사업자 invoices and get clients to withhold 3.3%, or (b) just track it and pay everything in May.
- Most freelancers do (b) and end up surprised. The 3.3% client withholding ahead of time is the underrated trick — it spreads the pain.
- If your freelance is meaningful (let's say >10M/year), the smart move is register as 개인사업자 (free), then your clients withhold 3.3% automatically, your bookkeeping software (홈택스) tracks it, May filing is just verification.

Australian writing income:
- If you're Korean tax resident (which you are, F-6 lives here), you owe Korean tax on global income. So yes, Aussie writing income is Korean-taxable.
- The Australia-Korea tax treaty prevents double taxation. In practice: Australia might withhold or expect you to file ATO return as non-resident. If they tax it, you claim Foreign Tax Credit on your Korean filing in May.
- The actual mechanics: track every payment, get statements showing AUD amounts + dates, get any Australian tax receipts, file Korean tax with the Foreign Tax Credit line filled in.

Honest recommendation: if your total income is over 50M/year and you have international income, get an accountant ONCE — maybe 300-500k for a session. They'll set up your structure (사업자, tracking sheet, treaty paperwork). After that you can DIY in subsequent years following the same pattern. Accountants who handle foreigners advertise on Korea4Expats / FB expat groups.

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u/LaraFamilyLaw
Verified expert · Family lawyer·2d ago

I'll defer to the practical accounting advice above — that matches what I see clients do successfully. Adding only on the legal side because the question came up in a related case recently.

The 183-day rule is fact-specific: if you have a permanent home in Korea (which F-6 holders almost always do) AND your spouse/family is here, you're considered Korean tax resident even if you spent fewer than 183 days in Korea that year. Some people on F-6 try to argue they're not tax resident because they traveled — usually doesn't work, Korea looks at "center of vital interests."

So practically: assume Korean tax resident, file everything in Korea, use the bilateral treaty to claim foreign credits.

One small but real point: keep originals (or scans) of any tax receipts/statements from Australia for 5 years. The National Tax Service (국세청) can audit retroactively up to 5 years on foreign-income credit claims. They're not aggressive about it but they do spot-check.

For your specific Aussie writing income — verify if your Aussie payer is treating you as Australian-resident or non-resident contractor. If they're paying you as non-resident, they should be withholding ATO non-resident rate (~32.5%), and you claim that credit on your Korean filing. If they're paying as resident (which they shouldn't if you live in Korea), there's a paperwork gap to fix — ask them for a "tax residency status" form so they handle it correctly going forward.

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