MoneyLog｜부동산·경제 인사이트

When do you usually receive your year-end tax refund in Korea? Most people expect it around April.

However, this year the National Tax Service decided to pay the refund earlier in March to help reduce financial pressure on workers.

If the company submits the required tax documents by March 10, the refund will be paid around March 18. If the filing is delayed or additional review is needed, the refund may be paid by March 31.

Another important point is that the tax refund is usually paid to the company first and then transferred to employees. Therefore, the exact date employees receive the money may vary depending on the company’s payroll schedule.

In this article, we will explain when the refund will be paid, what happens if the company files late, and how employees can receive the refund directly if the company is closed or unable to pay.

The legal deadline for year-end tax refund payments is April 9. However, the National Tax Service plans to pay the refunds earlier in March to help reduce financial pressure on workers.

The payment schedule depends on whether the company submits the required tax documents on time.

• March 18 – If the company files the tax documents by March 10
• March 31 – If the filing is late or requires additional review
• April 9 – Legal deadline for refund payment

Another important point is that the refund is paid to the company first, and then the company transfers it to employees. Therefore, the actual payment date may vary depending on each company’s payroll schedule.

For employees, the most important factor is not just completing year-end tax settlement, but whether the company files the required documents on time.

According to the National Tax Service, the company must submit the earned income payment statement and withholding tax report by March 10. If the filing is completed on time, the refund can be processed for early payment on March 18.

If the company files late or if the submitted documents need additional review, the refund may be delayed and paid by March 31 instead.

In simple terms, the process is: company filing → NTS review → payment to company → payment to employee. So if the company is late, the employee may also receive the refund later.

Another possible reason for delay is the refund bank account. If the company has not properly reported its refund account, the payment may not be processed smoothly.

Many people think the tax refund is paid directly to employees. However, the actual process is slightly different.

The refund is first paid by the National Tax Service to the company, and then the company transfers the refund to employees through payroll.

Therefore, even if the government pays the refund to the company on March 18, the actual payment date employees receive may vary depending on the company’s payroll schedule.

Employees can check the refund amount through the following methods:

• Withholding tax certificate issued by the company
• Payment statement on the HomeTax website
• Payment statement through the SonTax mobile app

Normally, the year-end tax refund is paid from the National Tax Service to the company, and then the company transfers the refund to employees.

However, if the company has gone bankrupt, closed its business, or failed to pay wages, employees may not receive the refund from the company.

In such cases, employees can apply directly to the National Tax Service to receive the refund.

The application can be submitted through the HomeTax website by searching for the form: “Employee Year-End Tax Refund Application for Bankrupt or Closed Companies.”

If the requirements are satisfied, the tax office will review the application and pay the refund directly to the employee instead of the company.

In some cases, the refund process requires a registered refund bank account. If no account is registered or if the account information is incorrect, the refund payment may be delayed.

You can register or change your refund account through the HomeTax website or the SonTax mobile application.

If multiple refund accounts are registered, the payment will be made based on the following priority order:

• Account written on the withholding tax refund application
• Account registered for a specific tax category
• Account registered for all tax categories

If the registered account is closed or invalid, the taxpayer may receive the refund in cash through the post office using the official tax refund notice.

Although most year-end tax refunds are paid without issues, there are situations where the refund may be delayed or withheld.

• The company has unpaid withholding taxes
• The withholding tax report has not been submitted
• The income payment statement is missing
• The tax office needs additional review

In some cases, the refund may be offset against the company’s unpaid taxes.

If the company receives the refund but does not pay the employee, the employee may file a wage claim with the Ministry of Employment and Labor.

For many employees, the year-end tax refund feels like a small bonus. This year, the National Tax Service decided to pay the refund earlier to help reduce financial pressure on households.

If the company files the required documents by March 10, the refund is expected to be processed around March 18. If the filing is late or requires review, the payment may be made by March 31.

In special cases such as bankruptcy or business closure, employees may apply directly to receive the refund.

We hope this guide helps you understand how the year-end tax refund process works in Korea.