National Tax Service to Refund 550 Billion KRW in Income Tax to 2.27 Million Delivery Riders and Substitute Drivers

[Asia Economy Sejong=Reporter Kim Hyewon] The National Tax Service will refund 550 billion KRW in income tax to 2.27 million people, including delivery riders and substitute drivers.

For taxpayers affected by COVID-19 and the East Coast wildfires, the deadline for income tax payment will be extended by three months until the end of August.

On the 28th, the National Tax Service announced the "May Comprehensive Income Tax and Individual Local Income Tax Filing Guide" containing these details.

Starting this year, the National Tax Service will begin income tax refunds for personal service income earners such as delivery riders, academy instructors, substitute drivers, private caregivers, and bathhouse attendants. When paying wages to personal service income earners, 3.3% income tax is withheld at source, but the actual income tax filing results will calculate and refund any amount collected in excess of the tax payable this year. The total number of refund recipients this year is 2.27 million, with a refund amount of approximately 550 billion KRW.

Choi Jaebong, Director of the Individual Taxpayer Division at the National Tax Service, said, "Personal service income earners such as platform workers often found the income tax filing process difficult, resulting in cases where they did not receive refunds or paid separate tax agent fees to get refunds. From this year, the system has been proactively revamped to allow easy access to refunds."

To receive a refund, one must be a personal service income earner subject to the simplified expense rate, with income under 24 million KRW in 2020 and under 75 million KRW in 2021, or a new business income earner with income under 75 million KRW in 2021.

For example, if delivery rider Mr. A earned 18 million KRW last year and had 594,000 KRW withheld in taxes in advance, the final tax amount after applying necessary expenses and personal deductions is 42,480 KRW, so Mr. A can receive a refund of 497,520 KRW.

Eligibility for refunds can be checked from June 1 on Hometax or Sontax. After confirming the details, recipients only need to register a refund account under their own name, and payments will be made by the end of June.

Taxpayers with comprehensive income in 2021 must file and pay comprehensive income tax and individual local income tax by May 31. For 5.34 million taxpayers affected by COVID-19 and the East Coast wildfires, the deadline for comprehensive income tax payment is extended by three months until August 31.

This content was produced with the assistance of AI translation services.