Year-End Tax Settlement Preparation and Schedule (2025 Income Year)
Starting January 9, 2026, at 9:00 AM, administrators can prepare in advance for the 2025 income year-end tax settlement in flex.
After the administrator open date, the person in charge should complete the basic year-end tax settlement settings and enter necessary items such as income confirmation / donations / company subsidies / childbirth support funds in advance.
Starting January 21, 2026, at 9:00 AM, members can proceed with the 2025 income year-end tax settlement via the year-end tax settlement banner shown in the flex to-do list.
This guide covers what administrators need to prepare and set up in advance after the administrator open date.
2025 Income Year-End Tax Settlement PDF Guide
If you would like to download the 2025 income year-end tax settlement PDF guide, please click the attachment at the bottom of this guide!
2025 Income Year-End Tax Settlement Webinar
Preparing for the 2025 Income Year-End Tax Settlement
Click [Year-End Tax Settlement] in the left menu and check that all information required for the year-end tax settlement has been entered.
1. Checking Withholding Agent Information
Click the year-end tax settlement menu on the left, then click the company logo in the upper left of the pop-up screen, and verify that the withholding agent information required for the earned income withholding receipts and payment statements to be delivered to members after the year-end tax settlement is correctly entered.
Withholding agent information can also be checked in the [Settings] - [Settlement Settings] - [Withholding Agent Information] tab at the bottom of the left menu.
2. Entering Income Tax Reduction Information and Family Information for Year-End Tax Settlement Subjects
It is recommended to guide year-end tax settlement subjects to enter their family information in their own profile before the member year-end tax settlement opens.
How to Enter the Flat Tax Rate for Foreign National Year-End Tax Settlement Subjects
How to Enter the Flat Tax Rate for Foreign National Year-End Tax Settlement Subjects
Where to Enter the Flat Tax Rate for Foreign National Year-End Tax Settlement Subjects
Individual entry of flat tax rate for foreign national year-end tax settlement subjects: Member profile -> Special notes -> Click Edit or Add, then enter the flat tax rate
Bulk entry of flat tax rate for foreign national year-end tax settlement subjects: Left member menu - Click the member whose information you want to change - Click [Change Member Information] at the bottom - [Change Other Information] - [Change Special Notes]
Applying the flat tax rate for foreign national year-end tax settlement subjects to year-end tax settlement only: Left year-end tax settlement menu - Click the member subject - Enter basic information - Income earner information - Foreign national flat tax rate (apply to year-end tax settlement)
How to Enter Income Tax Reduction Information for SME Employees Among Year-End Tax Settlement Subjects
How to Enter Income Tax Reduction Information for SME Employees Among Year-End Tax Settlement Subjects
Where to Enter Income Tax Reduction for SME Employees Among Year-End Tax Settlement Subjects
Individual entry of income tax reduction for SME employees among year-end tax settlement subjects: Member profile -> Special notes -> Click Edit or Add, then enter income tax reduction information
Bulk entry of income tax reduction for SME employees among year-end tax settlement subjects: Left member menu - Click the member whose information you want to change - Click [Change Member Information] at the bottom - [Change Other Information] - [Change Special Notes]
How Members Enter Dependent Family Information for Year-End Tax Settlement
How Members Enter Dependent Family Information for Year-End Tax Settlement
Go to My Profile - [Family] tab
If you need to add family information, click the [Add] button in the upper right. If you need to edit existing family information, hover over the existing family entry and click the pencil icon to edit it.
Enter the basic information and deduction information for the family member you want to add. When entering deduction information, please be sure to review the family member's resident registration number!
If you prefer to enter family information during the year-end tax settlement rather than adding it to the profile, you can add family information through [Personal Deduction Information] in the year-end tax settlement process screen.
How Administrators Enter Dependent Family Information for Year-End Tax Settlement Subjects
How Administrators Enter Dependent Family Information for Year-End Tax Settlement Subjects
Go to left menu [Members] - [HR Information Management] - [Bulk Information Change], click [Change Information] in the upper right - [Change Other Information] - click [Change Family Information] or [Change via Excel] to bulk add/edit member family information.
3. Setting Year-End Tax Settlement Period and Supporting Document Submission Policy
3-1. Setting the Member Deduction Report Submission Period
Use [Member Deduction Report Submission Period] to set the period during which members can proceed with their year-end tax settlement.
During this period, members can proceed with the 2025 income year-end tax settlement in [Home Feed] - [To-Do].
The member year-end tax settlement opens on January 21, 2026 at 9:00 AM.
Therefore, it is recommended to set the start date of the deduction report submission period to January 21 at 9:00 AM or later.
3-2. Setting the Member Final Result Review Period
In [Member Final Result Review Period], set the period during which members can review their final results before the year-end tax settlement results are confirmed.
3-3. Setting the Member Supporting Document Submission Policy
Use [Member Supporting Document Submission Policy] to configure whether the year-end tax settlement is considered complete based on the submission of required supporting documents.
For smooth operations, it is recommended to set the member supporting document submission policy to 'Required Policy'.
Click Required Supporting Documents to see what documents are needed when proceeding with the year-end tax settlement.
4. Confirming Year-End Tax Settlement Subjects
Year-end tax settlement subjects are workers currently employed as of January 1, 2026, who are not daily workers. This includes members on leave, such as parental leave. It is also important to check whether mid-year resignees and year-end new hires have been processed without omission.
In particular, be careful to identify mid-year resignees, new hires, and those on leave to avoid duplicate year-end tax settlements or omissions. Please refer to the year-end tax settlement subject checklist below to prevent such mistakes.
Year-End Tax Settlement Subject Checklist
Have all members who are not daily workers been included?
(Daily workers who worked less than 3 months are excluded from year-end tax settlement)Have new hires in December been included? Have dual-employment workers been included?
Have dispatched workers employed at other companies been included?
Have members with no withholding obligation because they are paid by a foreign corporation been excluded?
Adding and Excluding Year-End Tax Settlement Subjects
The year-end tax settlement status tab allows you to view the status of year-end tax settlement subjects.
Scheduled: Members who have not yet entered year-end tax settlement data (however, the administrator must confirm the 'annual income' in annual income management before data can be entered)
In Progress: Members who are currently entering year-end tax settlement data
Under Review: Number of members who have completed entering year-end tax settlement data; the administrator can review each member's year-end tax settlement data.
Results Confirmed: Number of members whose year-end tax settlement data has been finalized after the person in charge completes their review (members can check their year-end tax settlement results during the 'Member Final Result Review Period' in the period settings.)
If you want to process the year-end tax settlement for members who resigned on December 31, 2025, you can click the 'Add Year-End Tax Settlement Subject' button in the upper right of the year-end tax settlement status tab to add subjects.
However, members who resigned on December 31, 2025 typically complete their mid-year settlement for 2025 and do not undergo year-end tax settlement.
If you need to exclude a subject from the displayed year-end tax settlement subjects, click the checkbox on the left, then click the three-dot button at the bottom, and click [Exclude from Subjects] to remove them from the year-end tax settlement subjects.
Also, if you want to re-include a previously excluded subject, click the subject and then click [Include as Subject] to add them back to the year-end tax settlement subjects.
5. Confirming Earned Income for Year-End Tax Settlement Subjects
5-1. When Annual Income Data Exists in flex (e.g., payroll processing done via flex)
In the [Year-End Tax Settlement] - [Annual Income] tab, if there are completed payroll settlements through flex's payroll processing feature or payroll data uploaded in advance via Payroll Data Migration, you can retrieve the annual income using [Update Income].
If there are completed payroll settlements through flex's payroll processing feature or payroll data uploaded via Payroll Data Migration, annual income data is automatically retrieved, but it is recommended to click the [Update Income] button once more to load the final data.
After clicking the Update Income button, check each member's annual income. If you need to directly enter or edit an amount, you can do so directly on the screen!
After modifying or entering the annual income, click [Update Income] once more.
Once you have finished entering the annual income, click on the subject, then click [Confirm] at the bottom to finalize the annual income.
If you need to make changes after confirming the annual income, select the member whose confirmation you want to cancel in the [Annual Income] tab, then click [Cancel Confirmation] at the bottom to cancel the income confirmation before proceeding.
5-2. When Annual Income Data Does Not Exist in flex
In the [Year-End Tax Settlement] - [Annual Income] tab, click [Add Income] in the upper right, then use [Payroll Data Migration] to migrate each member's 2025 monthly payroll data.
After the update, in the [Annual Income] tab, select a member and click [Update Annual Income Data] then click [Confirm] to finalize the annual income!
Alternatively, in the [Year-End Tax Settlement] - [Annual Income] tab, click [Add Income] in the upper right, then use [Upload Current Workplace Income] to enter the total amount for 2025 and update the annual income data.
6. Managing Donations & Childbirth Support Funds & Company Subsidies for Year-End Tax Settlement Subjects
6-1. Managing Donations
In the [Year-End Tax Settlement] - [Donations] tab, you can enter carryover donations from the previous year and in-company donations.
In-company donations can only be entered by the administrator, while previous year carryovers can be entered by both the administrator and members.Previous year carryovers: This refers to the deduction amount and carryover amount if there are donation carryovers from before 2025.
Click [Add Carryover] in the upper right, then click [Import Previous Year Carryovers] to retrieve previous year carryovers if the 2024 year-end tax settlement was completed in flex.
If the 2024 year-end tax settlement was not processed in flex and there are no previous year carryover donations to import, click [Bulk Add Carryovers] to upload carryover donations all at once using an Excel template.
In-company donations: This refers to donations such as contributions to underprivileged neighbor funds made by company organizations.
Click [Add In-Company Donations] in the upper right, then click [Bulk Add In-Company Donations] to upload in bulk via Excel.
6-2. Childbirth Support Fund Payment Records
What are Childbirth Support Fund Payment Records?
Following the amendment to the Income Tax Act for the 2024 income year, when childbirth support funds are paid as non-taxable wages, the obligation to submit a payment statement including recipients, amounts, etc. has been newly established.
If childbirth support funds were paid as non-taxable (Q03, Q04), a payment statement must be submitted.
In the [Year-End Tax Settlement] - [Childbirth Support Fund] tab, you can upload childbirth support fund payment records via Excel.
When uploading the Excel template, please refer to the following.
Childbirth Support Fund Application Criteria
The non-taxable childbirth support fund amount (Q03, Q04) reflected in the annual income (current workplace + previous workplace) must
match the total of the 1st/2nd payment amounts in the childbirth support fund payment statement.
Q03: 1st payment amount
Q04: 2nd payment amount
Important Notes
The non-taxable childbirth support fund is applicable for up to 2 payments within the year.
If childbirth support funds were received from 2 or more workplaces (companies), up to 2 payments per workplace are recognized.
Even with 2 or more children, a maximum of 2 payments are allowed, and the total per payment must match the annual income amount.
The business registration number of the payer in the payment statement must match the business registration number of the current or previous workplace.
6-3. Company Subsidy Payment Records
What are Company Subsidy Payment Records?
Welfare subsidies paid by the company to members in addition to wages are amounts that members cannot deduct during the year-end tax settlement. To separately manage these amounts, subsidies paid by the company as welfare benefits can be managed in the [Company Subsidies] tab.
Administrators can bulk register, edit, and bulk delete data for each category (credit card, education expenses, medical expenses, pension account) via Excel, and the information entered in the company subsidies menu can be viewed in the year-end tax settlement detail screen for each member.
In the [Year-End Tax Settlement] - [Company Subsidies] tab, you can upload company subsidy payment records via Excel.
Download and upload the Excel form for each category: credit card personal use, education expenses, medical expenses, and pension account.
When uploading via Excel for mid-year hires, the system compares the employment service period with the 'payment month' in the data. If the periods do not match, the company subsidy will be excluded from the year-end tax settlement calculation.
The uploaded company subsidies operate as follows during the year-end tax settlement.
Credit card personal use
You can check the company subsidies registered by the administrator in the Company Expense Deduction tab.
Company subsidies are deducted from credit card usage amounts.
Education expenses
Company subsidies for education expenses are deducted when the education expense type matches.
Medical expenses
Company subsidies for medical expenses are deducted when the medical expense type matches.
Pension account
Company subsidies for pension accounts are deducted when the pension account type, institution, and account number match.
Understanding Company Subsidy Calculation with an Example
Understanding Company Subsidy Calculation with an Example
Conditions (Income Earner):
Income earner themselves, continuous employee / resident
Submitted eyeglass purchase expense records
NTS data (1): 1,000,000 KRW
Direct data (2): 1,000,000 KRW
Company subsidy (medical expense subsidy) of 1,200,000 KRW paid within the attribution period
Received 5,000,000 KRW in private health insurance reimbursement (OOO Insurance) within the attribution period
As a resident and continuous employee, the submitted eyeglass purchase expenses are valid as eligible deduction items.
Calculation Method:
Company subsidies are first deducted from actual medical expenses paid.
Eyeglass purchase expenses are subject to a per-person deduction limit (500,000 KRW per year).
Eyeglass purchase expenses are not subject to private health insurance reimbursement deductions.
(Therefore, no additional deduction due to private insurance reimbursement occurs.)
7. Confirming Member Earned Income - Mid-Year Resignee Settlement (Must Be Included When Filing Payment Statements)
The earned income payment statement filing for year-end tax settlement results must include both the year-end tax settlement for employees who were employed in 2025 and the mid-year settlement records for members who resigned during 2025.
If mid-year settlements for members have already been completed through flex's payroll processing feature in 2025, the completion status will show as "Complete", and the data for those members can be downloaded for review.
If mid-year settlements for members were not conducted in flex during 2025, you must go to [Year-End Tax Settlement] - [Mid-Year Settlement] screen, add the members who resigned during 2025 as subjects, and proceed with the mid-year settlement (mid-year resignee year-end tax settlement)
before confirming the results.
If the mid-year settlement for 2025 mid-year resignees was processed in flex, you can confirm that the mid-year settlement completion status is [Complete] in the left menu [Year-End Tax Settlement] - [Mid-Year Settlement] screen.
If the mid-year settlement completion status shows [Incomplete], click [Review] on the right to complete the mid-year settlement.
If a member who resigned mid-year in 2025 does not appear in the [Year-End Tax Settlement] - [Mid-Year Settlement] - [Subject Status] tab, click [Add Subject] in the upper right to add the subject for mid-year settlement and proceed.
In the left menu [Year-End Tax Settlement] - [Mid-Year Settlement] - [Annual Income] tab, you can enter earned income information for 2025 mid-year resignees.
If payroll settlements have been completed through flex's payroll processing feature or payroll data has been migrated via payroll data migration, click the [Reflect Latest Income] button to load the latest income for mid-year resignees.
If you need to modify 2025 earned income, you can directly enter or edit the amount on the screen.
However, if a mid-year settlement was processed together with [Payroll Settlement], the amount cannot be edited in [Year-End Tax Settlement] - [Mid-Year Settlement] - [Annual Income]. If modifications are needed, make the changes in the payroll settlement that was processed together with the resignee's mid-year settlement.
Click [Add Income] - [Upload Current Workplace Income] in the upper right to upload the final 2025 earned income amount and various pre-paid tax amounts via Excel.
Enter the values from the withholding receipt that was confirmed at the time of resignation.
Checking Revised Tax Laws for the 2025 Income Year-End Tax Settlement
2025 Income Year-End Tax Settlement Key Amendments | 2025 Income Year-End Tax Settlement Key Amendment Details |
Increase in child tax credit amount | The deduction amount has been increased to 250,000 KRW for the first child, 300,000 KRW for the second, and 400,000 KRW for the third and beyond. |
Expanded eligibility for housing savings deduction | Not only the head of household, but the head of household's spouse is also eligible. |
Clarification of housing-related deduction criteria | Refinanced loans are now included in the deduction for principal and interest repayment on housing lease loans. |
Reflection of changes to the hometown love donation system | • A special disaster area donation type has been added. |
Change in credit card income deduction calculation method | • The consumption increase deduction has ended, and the maximum deduction amount has been adjusted to 6,000,000 KRW. |
FAQ
Can year-end tax settlement be done on mobile?
Can year-end tax settlement be done on mobile?
Year-end tax settlement does not support mobile (app). You cannot proceed with year-end tax settlement via the flex mobile app; it can only be done via PC (web). Please instruct members to use PC (web) to proceed!
I don't use flex — can I use just the year-end tax settlement feature?
I don't use flex — can I use just the year-end tax settlement feature?
The year-end tax settlement feature in flex is available when all member information and payroll data for settlement are entered in flex! You must subscribe to flex's Core HR and payroll settlement features on a paid plan, and you can use the year-end tax settlement feature by reflecting existing payroll data using the Payroll Data Migration feature, or by registering members in flex and uploading annual income data via Excel. Go to Payroll Data Migration Guide
I use flex but not the payroll settlement feature — can I still do year-end tax settlement?
I use flex but not the payroll settlement feature — can I still do year-end tax settlement?
The payroll settlement feature is required because annual income is calculated based on each member's payroll settlement records stored in flex. You can use the year-end tax settlement feature by reflecting payroll data using the Payroll Data Migration feature, or by registering members in flex and uploading annual income data via Excel. Go to Payroll Data Migration Guide
Can I use payroll data settled outside of flex for the year-end tax settlement?
Can I use payroll data settled outside of flex for the year-end tax settlement?
You can use the year-end tax settlement feature by reflecting externally settled payroll data using the Payroll Data Migration feature, or by registering members in flex and uploading annual income data via Excel.
Go to Payroll Data Migration Guide
When does the flex year-end tax settlement open for members?
When does the flex year-end tax settlement open for members?
It opens on January 21. The Hometax opening is on January **, but during that opening week, the NTS continues to adjust its criteria and calculation standards, so once the one-week adjustment period for Hometax ends, the year-end tax settlement opens on January 21 so you can proceed with confirmed deduction criteria.
Is the filing file generated after completing the year-end tax settlement compatible with Duzon?
Is the filing file generated after completing the year-end tax settlement compatible with Duzon?
flex and Duzon are mutually incompatible platforms, so the file cannot be opened in Duzon.
Will the year-end tax settlement results completed in flex be directly synced with Hometax?
Will the year-end tax settlement results completed in flex be directly synced with Hometax?
Rather than direct integration, the system generates a filing file that you submit to Hometax. Once the administrator has completed the review of all members' year-end tax settlements, please generate the filing file and submit it!
How is year-end tax settlement processed for members on leave?
How is year-end tax settlement processed for members on leave?
Members on leave are current employees, so they must also undergo year-end tax settlement. After confirming the annual income for the member on leave, once the member submission period arrives, the member can log in to flex via PC and proceed themselves. Alternatively, the administrator can proceed on their behalf.
Are mid-year resignees also subject to year-end tax settlement?
Are mid-year resignees also subject to year-end tax settlement?
Members who resigned mid-year in 2025 are not subject to year-end tax settlement. Mid-year resignees should undergo [Mid-Year Settlement] rather than year-end tax settlement, after which the earned income withholding receipt should be issued and provided to them.
A member is registered but does not appear in the year-end tax settlement subjects.
A member is registered but does not appear in the year-end tax settlement subjects.
Their employee number or resident registration number may not have been entered. Alternatively, please check the year-end tax settlement status page by clicking [Excluded] to see if the member has been excluded.
Annual income information for certain members shows as 0 KRW.
Annual income information for certain members shows as 0 KRW.
If payroll information was migrated manually, please try clicking the annual income data update button once, as the amount will be automatically loaded. Or, if you have previously edited member data in annual income management, the date and income information may have been omitted at that time. Please check that member payroll information is correctly entered, and if so, click Cancel Confirmation → Update Annual Income Data.
How should I enter the income tax reduction start date for mid-year hires?
How should I enter the income tax reduction start date for mid-year hires?
For mid-year hires' SME income tax reduction start date, you may use the member's current workplace start date for administrative convenience, or the actual date when the benefit started applying.
Since the withholding receipt separates the current workplace and previous workplaces, flex divides the period according to the mid-year hire's start date at the current workplace during year-end tax settlement (information about previous workplaces is entered directly by the member or by the administrator via the withholding receipt during the review stage).
Therefore, you may enter the SME income tax reduction start date as either the current workplace start date or the actual date when the benefit began, whichever is more convenient.
The tax reduction eligible income shows as 0 KRW in the income tax reduction section.
The tax reduction eligible income shows as 0 KRW in the income tax reduction section.
The tax reduction eligible income is automatically reflected if the reduction information is entered in the member's special notes in flex and monthly payroll settlements have been conducted. If it was not automatically reflected or shows as 0 KRW, there may have been some modification in Year-End Tax Settlement → Annual Income Management.
In this case, the amount may have been changed to 0 KRW to prevent miscalculation. It is recommended to check in Annual Income Management whether the tax reduction eligible income is entered for the specific member. If the amount shows as 0 KRW, please cancel the annual income confirmation, enter the amount, and then confirm again. After that, be sure to review and complete the year-end tax settlement again.
There is a member with a 90% income tax reduction in their special notes, but I want it to apply only during the year-end tax settlement. How do I do that?
There is a member with a 90% income tax reduction in their special notes, but I want it to apply only during the year-end tax settlement. How do I do that?
If you want to keep the record but not have it apply, you can enter it in the special notes but set the effective date to before the year-end tax settlement attribution year, or delete the entry entirely to leave it blank. When the year-end tax settlement period arrives, edit the dates again so that it applies.
Where can I modify or configure the year-end tax settlement period and supporting document submission policy?
Where can I modify or configure the year-end tax settlement period and supporting document submission policy?
You can modify or configure the year-end tax settlement period and submission policy by clicking [Deduction Report Writing n days] in the upper right of the left menu [Year-End Tax Settlement], or from the Settings menu.
If it has not been configured, please select the period setup required icon.