How to Calculate our Monthly Tax Withholding?

by dave Mon Apr 21, 2008 12:45 pm

Knowing Monthly Tax Withholding of South Korea
Simplified by: Dondave Jabay

Published in SULYAPINOY February Issue

When you are employed and being paid a salary income, you are obliged to pay your personal income tax to the Korean government. The income tax shall be monthly withheld by your employer which is to be deducted from your monthly salary.

An employer paying wage and salary income must deduct income tax monthly from the earnings of their employees based on Simplified Tax Withholding Table issued by National Tax Service (NTS) and the total of these deductions has to be paid over the NTS (district tax office concerned) every 10th day of the following month.

However, a person who has no more than ten employees on average from January to December of the preceding year may pay taxes withheld to the government every half-year, after obtaining an approval by the head of the tax office concern.

Monthly Tax Withholding Calculation Guidelines:

1) Monthly Total Income from Emloyment
2) ( -) Non-taxable Income (Night-duty allowance)

Note: Night-duty allowance includes night overtime rate and night differential rate (basic salary x 50%)

3) (=) Monthly Gross Wage & Salary Income
4) ( -) 30% of Gross Wage and Salary Income (excluding Non-taxable Income)
5) (=) Monthly Taxable Income
6) Equivalent Monthly Tax Withholding = Refer to Simplified Tax Withholding Table (Refer to Page #)

Monthly Tax Withholding Calculation Example:

Salary Details:

1) Gross Wage: 1,350,000 Won
2) Night-duty allowance: 50,000 Won

Calculation:

1) 1,350,000 Won - 50,000 Won = 1,300,000 Won
2) 1,300,000 Won x 30% = 390,000 Won
3) 1,300,000 Won � 390,000 Won = 910,000 Won
4) Refer to Simplified Tax Withholding Table:

Ans. 910,000 Won is equivalent to 690 Won

2008 Simplified Tax Withholding Table (Latest Version):

Note: The table below is the latest version and was implemented starting month of March. Since this Simplified Tax Withholding Table latest version is applicable to earned income incurred on and after Jan. 1, 2008. If a taxpayer�s income earned between Jan. and Feb. was withheld according to the previous version of Table, the withholding tax agent will make an adjustment at the time of tax withholding or during the year-end tax settlement.

How to Calculate our Monthly Tax Withholding? 111

How to Calculate our Monthly Tax Withholding? 212

For Complete 2008 Simplified Tax Withholding Table and Online Calculation, CLICK HERE

by crushedrose78 Thu Jul 22, 2010 11:57 pm

ang alam ko po employer nagbabayad ng TAX natin.. Sir Dave if yung TAX ay madeduct sa salary natin meron din po ba tayo ANNUAL INCOME TAX RETURN? saan po makukuha? gagamitin po sa PAG-IBIG LOAN or for LEGAL Purposes.. ano po ba hangul ng TAX or INCOME TAX RETURN?

salamat!

How to Calculate our Monthly Tax Withholding?

How to Calculate our Monthly Tax Withholding?

Re: How to Calculate our Monthly Tax Withholding?