Taxpayer and Taxable Income
The worker who is paid for providing work or service is a taxpayer and the relevant tax (payment, bonus) is calculated and reported according to the simplified tax table.
The company (employer) has an obligation to withhold each employee’s income tax when paying his/her monthly salary. The withholding tax is calculated based on the Simplified Tax Withholding Table issued by NTS(National Tax Service)
If there is any difference between the finalized income tax and the actual tax paid for 12 monthes salary, it will be refunded or additionally paid by ‘year-end settlement’ on February.
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Each month, the company (employer) who withhold employees’ income tax pays tax on their behalf of them. The income tax should be reported by the 10th day of the month following the month in which wage and salary are paid.
(Reference) Income Tax Rate for Individual
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