Prepared for those getting ready for the 2026 year-end tax settlement.
Prepare early for the 2026 year-end tax settlement (for income year 2025) and get started easily with flex.
What is Year-End Tax Settlement?
Year-end tax settlement is the process of calculating the exact amount of tax by reviewing how much you earned over the year and how much you spent. The government collects taxes in advance each payday at a predetermined rate based on your income, which is called withholding tax.
During year-end settlement, the income tax already paid from January to December (pre-paid tax) is compared with the actual income tax owed (determined tax). If you overpaid, you receive a [refund], and if you underpaid, you make an [additional payment].
Note: Year-end tax settlement applies to salaried workers, i.e., those with earned income.
Am I Eligible for Year-End Tax Settlement?
Regular employees: This applies to typical office workers. You are included as year-end settlement targets.
Mid-year leavers: If you transferred to another company after leaving, you can get a year-end settlement by obtaining a withholding tax receipt from your previous company and submitting it to your current company. If you did not transfer, you must file deductions yourself during the May comprehensive income tax filing period.
December new hires: Even if you only received one month's salary, if your total salary exceeds 5 million won, you are eligible for year-end settlement.
Non-regular workers (part-timers, contract workers, interns, etc.): If employed for 3 months or more and enrolled in the four major insurances, you are included as a year-end settlement target.
Daily workers: If the daily labor income tax rate (6.6%) was applied, the tax obligation is completed through withholding, so you are not a year-end settlement target. However, this may vary depending on certain conditions such as having earned income from multiple sources or being continuously employed for 3 months or more.
Freelancers and self-employed: Since you are not earned income earners, you are not year-end settlement targets. You settle your taxes through the May comprehensive income tax filing in 2026.
[Key Schedule for 2025 Income Year-End Settlement]
The schedule below is based on a payday of the 25th. Please adjust flexibly according to your company's payday!
Key Schedule | Period | Person in Charge | Notes |
Year-end settlement preparation | Jan 09, 2026 (Fri) ~ Jan 13, 2026 (Fri) | Admin | Company admins should complete the following before opening to employees: - Set year-end settlement period |
flex year-end settlement detailed guide | ~ Jan 16, 2026 (Mon) | Admin | Each company makes internal announcements about year-end settlement using the flex home feed |
Simplified settlement service opens | Jan 21, 2026 (Wed) ~ | Employee | - Website: https://www.hometax.go.kr * HomeTax opens on January 15, but since there can be about a week of fluctuation, we recommend downloading after January 22. |
Enter deduction details and upload required documents | Jan 21 ~ Jan 26, 2026 | Employee | flex year-end settlement feature opens on January 21 but can proceed according to company schedule. |
Document review and supplementation | ~ Feb 13, 2026 | Admin | Admin reviews documents and requests supplementary submissions |
Employee self-verification and final review of settlement data | Feb 19 ~ Feb 20, 2026 | Admin | After admin final review, employee re-confirmation and final modifications |
Year-end settlement payment statement HomeTax verification | ~ Feb 23, 2026 | Admin | After all year-end settlement reviews are confirmed, we recommend generating the payment statement electronic file provided by flex and running content verification on HomeTax before reflecting in February payroll. |
Reflect confirmed year-end settlement in payroll | Feb 25, 2026 | Admin | Completed year-end settlement amounts are reflected in the February 2026 payroll |