Guidance for Income Tax Calculation

1. Computing Annual Salary
*Total salary : Basic salary + Allowance + Bonus

2. 19% Flat Tax Rate : (1)*19%
: (when tax rate is over than 19% based on progressive tax rate)

3. Wage & Salary deduction

Wage & Salary amount (Yearly)	Deduction amount (Korean Won)
Up to 5,000,000	Wage & Salary amount × 70%
5,000,000 ~ 15,000,000	( “ - 5,000,000) × 40% + 3,500,000
15,000,000 ~ 45,000,000	(“ -15,000,000) × 15% + 7,500,000
45,000,000 ~ 100,000,000	(“ -45,000,000) × 5% + 12,000,000
Over 100,000,000	( “-100,000,000) × 2% + 14,750,000

4. Personal Deduction
A. Basic Deduction : \ 1,500,000 per capita (Taxpayer, Spouse and Dependents)
B. Additional Deduction : The Handicapped
C. The Aged (70 years old or more): \ 1,000,000 per capita

5. Basic Income
Total – Deduction items (3~4)

6. Computed Tax [Ex.: if basic income is 50,000,000 [((50,000,000-46,000,000) × 24%)+5,820,000]

Tax Base (Basic Income)	Tax Rate
Up to 12,000,000	Tax Base × 6%
12,000,000 ~ 46,000,000	( “ -12,000,000) × 15% + 720,000
46,000,000 ~ 88,000,000	( “ -46,000,000) × 24% + 5,820,000
88,000,000 ~ 150,000,000	( “ -88,000,000) × 35% + 15,900,000
Over 150,000,000	(  “  -150,000,000) × 38% + 37,600,000
Over 500,000,000	40%

7. Special & Other Tax Deduction
A. Normal : \ 130,000 (In case the total special deduction amount is under \130,000)
B. Children tax deduction(children aged Seven and older): \150,000/ Per child (\300,000 from the third child)
B. Special Deductions < #Insurance fee. #Medical fee. #Education fee. #Contribution.>
C. Other Deductions < Personal pension. Usage of Credit Card >

8. Tax Deduction

Limit : Total Salary Up to 55,000,000 = 660,000
55,000,000 ~ 70,000,000=630,000/Over 70,000,000 = 500,000

9.Taxpayers’ Association Credit : (6) × 5%

10. Income Tax : [( 6 -7 -8 )]/month

11. Resident Tax : : (10) × 10%

12. Service charge per month:30,000 won ※ Service charge for final tax return : 20,000 won (once a year)

13. Payable Tax :(10)+(11)+(12) per month