Korean Job Discussion Forums

[IamBabo]

Hello,

I did a search, but couldn't find specific information. Could someone please tell me what the tax usually is on severance pay. Thank you...

babo

[antoniothegreat]

i have never been taxed on severance pay...
no link or anything, but if you are at a hogwon, i would consider the fact that someone is keeping part of your money

[polonius]

As your severance pay is part of your incurred salary in Korea, you are taxed on it. I have received 4 severance pays over my years here, and have been taxed on them. All my other teachers, and everyone I have spoken to has also been taxed on it aswell.

[the eye]

First, you deduct 50%.

Then you deduct 300,000won for each year (up to 5) of service.

The remaining amount is subjected to regular tax rates.
http://www.nta.go.kr/eng/default.html

[thaitom]

This is the information I have been searching for,can you tell me exactly where you found it? I have searched the NTS website and found no reference to it.

[thaitom]

okay, 2.1 Mil. divided in half , subtract 300 thousand for one year, balance is 750,000 taxable income. I enter this amount on the monthly withhold Calc. as 750, it says you must enter a minimum amount of 950,00 to be taxed. So my severance pay is not taxed,right??

[the eye]

Severance is not treated the same as regular salary. I will try and find the rate, on the website. I recall 9%??? Ahk..What a sea of nonsense that thing is.

[the eye]

I can't read the PDF files from my computer in canada.
If you can't find it, go to the Q&A link and you can ask them directly. They will get back to you...but it may take a few days at least.

[IamBabo]

thanks for everyone's help..... i appreciate it...