IlIlNine
Joined: 15 Jun 2005
Location: Gunpo, Gyonggi, SoKo
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 Posted: Wed Dec 30, 2009 7:05 pm Post subject: Taxation and Pension (NTS example) |
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| Quote: |
As far as individual income tax is concerned, when you have earned monthly
income of ￦2,000,000, the income tax amount to be withheld from your wage is
￦31,740 monthly according to the Simplified Tax Withholding Table (assuming the
number of your family is one, just yourself, which means you have no qualified
spouse or dependents who live together with you in Korea).
However, to take into account the contribution amount under the National Pension
Scheme, the amount to be deducted from your monthly income may increase.
Although, National Tax Service is not in charge of the National Pension Scheme,
We would like to outline the system briefly for your convenience.
Generally speaking, foreigners working at the workplace with more than 5 full-time
employees are included in the mandatory coverage of the Scheme, with some exceptions
(For further information, contact National Pension Corporation(http://www.nps.or.kr) to
the number 1355 without dialing code). The contribution of workplace-based insured
persons is equally shared between the employer and the employee.
The contribution rate for the insured person is 9%, which is normally calculated by
multiplying the insured person's Standard Monthly Income shown on the National Pension
Contribution Table, which has a similar function to Simplified Tax Withholding Table
for income tax withheld, by contribution rate.
In the case of monthly income of ￦2,000,000, the portion of contribution an
employee should assume, which is to be deducted from his/her wage, is ￦88,650.
To sum up, in your case, the amount deducted from your monthly salary will be at
least ￦120,390(Income Tax withheld + National Pension Contribution). Moreover, a
bit of residence tax and medical insurance fee may be added.
※ ￦88,650 = {[(￦2,000,000�12)�365]�30 - ￦2,602}�9%�2
To add one thing, your employer should accept your request to present a copy of your
tax certificate(Receipt for Wage & Salary Income Tax Withholding). When you retire from
your current job before the end of this year, your employer would have responsibility
to have your tax status settled for you at the time of your retirement. So, you could
get tax refunded or pay more tax then from(to) your employer. |
This information is old stuff to many, but may be helpful for some. Everyone has a responsibility to make sure that their employer is withholding the right amount of tax and pension (and medical insurance). Any deviation from this is at *your* expense and is not for your own good. |
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