If you are allergic to figures, it’s a nightmarish time of year.

Tax returns in Korea are due between Wednesday and Feb. 10.

For those who have been handed nothing but a blank form and a deadline by their employer, the National Tax Service is offering help in English.

The National Tax Service has updated its “Easy Guide for Foreigners’ Year-end Tax Settlement,” which contains nearly 100 pages of information in both English and Korean, complete with expat-relevant worked examples. There is also a special English-language helpline.

Income tax in Korea generally involves applying deductions to taxpayers’ gross income to arrive at their taxable income. This is then charged a progressive rate of tax.

Because of this, the tax form most workers are asked to give their employers is basically a list of deductions.

The list of what income qualifies is long, but expats who receive housing directly do not pay tax on it. Allowances for housing, however, are taxable.

If you have been resident for less than five of the last 10 years, overseas income is not taxable unless you remit that income to Korea.

Expats are eligible for most of the deductions Koreans qualify for, and some extra deductions specific to them.

There is a standard deduction of 1.5 million won, and additional deductions for dependents. In addition, there is a deduction on earned income. This is substantial ― 11.25 million on annual income of 30 million ― though it varies with income, with the proportion deducted decreasing as income rises.

Payments to government-run pension schemes are entirely deductible.

The most common other deductions are for medical expenses, school fees, insurance payments, private pensions, donations and cash and card spending. These deductions usually have limits and are only equal to part of the related spending.

In some cases ― cash spending, for example ― you have to register in advance and collect receipts as you pay. In others, such as medical bills, there is a minimum spend.

Fees for Korean classes and hagwon are not deductible.

To get these other deductions counted, you will need to provide documentation. This is available from the provider of the service, but the NTS also provides a centralized service for it ― the Simplified Year-end Tax Settlement ― at www.yesone.go.kr. This service is available only in Korean, but allows you to print out receipts for all of the above categories.

To use the simplified documentation service, you need a Public Internet Certificate, available from banks and tax offices. If you have dependents, you need to obtain their consent to access their deductions through this service.

Some additional deductions are available this year. There are increased deductions for children, and the limit on deductions for private pensions has been increased. There is also a new exemption for scholarship income.

Certain expats also qualify for special tax exemptions. These are an exemption for teachers from English-speaking countries at schools and universities, and an exemption for engineers.

The teachers’ exemption must be applied for within nine days of receiving the first pay check and is limited to two years. Who qualifies for the teachers’ exemption varies according to nationality; there is no exemption for Canadians and British teachers are not eligible if they don’t have to pay tax in the U.K.

The engineers’ exemption applies to a broad range of professionals in engineering or research. Details of who qualifies for this and the teachers’ exemption is available in the NTS guide.

Expats can also opt for a 15 percent flat tax rate instead of the usual progressive rate, which increases with income.

This flat tax is only beneficial for higher earners. According to the NTS, low earners pay more on a flat rate, which is only advantageous after taxable income exceeds 46 million won. This figure does not include the substantial allowances that workers generally receive, so your gross income will normally have to be well over 60 million won for you to benefit.

The “Easy Guide for Foreigners’ Year-end Tax Settlement,” can be downloaded from the NTS website (www.nts.go.kr/eng) where more information can be found. For other inquires call the Helpline for Foreign Taxpayers on 1588-0560.

By Paul Kerry (paulkerry@heraldcorp.com)