"Toejigeum" Tax Deduction: How to Compute?

by dave Fri Jan 23, 2009 1:47 pm

Mga Kabayan:

At last... I got the basic formula on how to compute Tax Deduction for our "Toejigeum" or "Severance Pay" from the Korea National Tax Service office. Please refer below...

A) Taxable Base of "Toejigeum" = Total "Toejigeum" Amount - Non-taxable Retirement Income

Note: Non-taxable Retirement Income refers to:
--> 1) 45% of Total "Toejigeum" Amount
--> 2) 300,000 per year of work

B) Tax Deduction = Taxable Base x Tax Rate

Note: Tax Rate (8% ~ 35%)
--> if the taxable is up to 12,000,000won : (x 8%)
--> if over 12,000,000 up to 46,000,000 : (x 17% minus 1,080,000)
--> if over 46,000,000 up to 88,000,000 : (x 26% minus 5,520,000)
--> if over 88,000,000 : (x 17% minus 13,140,000)

For example:
If your total receivable "toejigeum" amount for 2-years and 11-months of work is 3,461,500won (please click HERE for detailed sample computation) then the tax deduction computation must be like this...

A) Taxable Base = 3,461,500won minus Non-taxable Retirement Income
Taxable Base = 3,461,500won - (.45 x 3,461,500won) - (600,000won for 1st & 2nd year of work) - (270,000won for 3rd year of work which is 11-months only)

Taxable Base = 3,461,500won - 1,557,675won - 870,000won
Taxable Base = 1,033,825won

B) Tax Deduction = Taxable Base x Tax Rate
Tax Deduction = 1,033,825won x .08
Tax Deduction = 82,706won

So, the Final Receivable "Toejigeum" after Tax Deduction = 3,461,500won - 82,706won

--> Final Receivable "Toejigeum" after Tax Deduction = 3,378,794won

by Emart Fri Jan 23, 2009 2:42 pm

Thanks a lot Misterdj... Keep up the good work!!!

by onatano1331 Tue May 05, 2009 11:29 pm

ty po sir

by smackapple2003 Mon Jun 08, 2009 7:16 pm

ako po di nabigyan ng tejecom nand2 na po ako sa pinas paanu ko po mahahabol pa yun

by dave Tue Jun 23, 2009 5:00 pm

ako po di nabigyan ng tejecom nand2 na po ako sa pinas paanu ko po mahahabol pa yun

kabayan,

if your employer has 5 or more regular workers including Koreans, you should avail the "toejigeum"...

if hindi nyo nakuha, you can file a petition at the Labor Office... you may approach the POEA in Manila or call the Phil. Embassy in Itaewon for any assistance...

thanks...

by smackapple2003 Tue Jun 23, 2009 5:15 pm

salamat po sa reply..more power godbless....

by jhunex Sat Jun 27, 2009 8:26 pm

salamat ng sangkatutak bro.more power and God bless... idol

by florie Wed Jul 22, 2009 10:47 am

maraming salamat po....!!!!

by koreaariso Fri Nov 13, 2009 9:12 pm

kabayan
ano po dapat kung gawin naka 1 year po ako sa dating kung companya ni release na po ako naka tanggap ako g tejikum na galing sa employer pero sa samsung wala pa ? bigyan nyu po ako ng cel number nyu salamat

by jrtorres Sat Nov 14, 2009 7:29 am

kabayan..magkano ba nareceiv mo sa company..kasi kalimitan ay dimo naman deretsang matatanggap sa samsung ang tegicom mo..ang basic ang sinasagot ng samsung at yung exess na ot ang syang ibinibigay sayo ng company mo..pakilagay kung magkano..at yun palang last 3 months mo ay magkano ang inabot....kung sa plagay mo ay mhigit one million won ang nakuha mo..malamang ay kasama na ang samsung insurance sa binigay sayo ng amo mo...pakitsek mgaling..baka kasi malito ka ..at akala mo ay nadodoble ang tegicom

by CHAIZ Mon Sep 05, 2011 2:15 pm

good day ..ph saan makkuha ang tgcom kc ng nquire kmi 77 lng nahulg nla 50 emplyees kmi sa compny 2 yrs kmi dn nxt week pa relis na kmi..paano po makukuha at ilang days mg antay para ma rcve namn..

by CHAIZ Mon Sep 05, 2011 2:17 pm

til sept 10 nlng kmi start ba kmi sa 3mths june,july,augst.kso di pa namin nakuha ung july at augst na payslip..ung june q ay 1.7 ung july 1.5....sa gross pay po bah mg base..

by noel53_ph Sat Sep 10, 2011 1:13 am

by gilda_esguerra Wed Feb 25, 2015 7:59 pm

please pa help naman po baka me kopya kyo nun detailed sample computation ng per year nde n po kc ma open un attachment..
thanks po

dave wrote:Mga Kabayan:

At last... I got the basic formula on how to compute Tax Deduction for our "Toejigeum" or "Severance Pay" from the Korea National Tax Service office. Please refer below...

A) Taxable Base of "Toejigeum" = Total "Toejigeum" Amount - Non-taxable Retirement Income

Note: Non-taxable Retirement Income refers to:
--> 1) 45% of Total "Toejigeum" Amount
--> 2) 300,000 per year of work

B) Tax Deduction = Taxable Base x Tax Rate

Note: Tax Rate (8% ~ 35%)
--> if the taxable is up to 12,000,000won : (x 8%)
--> if over 12,000,000 up to 46,000,000 : (x 17% minus 1,080,000)
--> if over 46,000,000 up to 88,000,000 : (x 26% minus 5,520,000)
--> if over 88,000,000 : (x 17% minus 13,140,000)

For example:
If your total receivable "toejigeum" amount for 2-years and 11-months of work is 3,461,500won (please click HERE for detailed sample computation) then the tax deduction computation must be like this...

A) Taxable Base = 3,461,500won minus Non-taxable Retirement Income
Taxable Base = 3,461,500won - (.45 x 3,461,500won) - (600,000won for 1st & 2nd year of work) - (270,000won for 3rd year of work which is 11-months only)

Taxable Base = 3,461,500won - 1,557,675won - 870,000won
Taxable Base = 1,033,825won

B) Tax Deduction = Taxable Base x Tax Rate
Tax Deduction = 1,033,825won x .08
Tax Deduction = 82,706won

So, the Final Receivable "Toejigeum" after Tax Deduction = 3,461,500won - 82,706won

--> Final Receivable "Toejigeum" after Tax Deduction = 3,378,794won