Tax Guide and Tax Savings Guide

Tax deferral effect: For retirement pay or operating income deposited in an IRP account, taxes are deferred until they are received as a pension later. Tax reduction upon receiving pension: If you receive the pension after the age of 55, you can receive a reduction of 30% to 40% on retirement income tax. A 30% reduction applies up to the 10th year of pension receipt, and a 40% reduction applies from the 11th year onwards. On the other hand, if you receive a lump sum, you may be subject to the full retirement income tax and a 16.5% other income tax on operating profits. Tax deduction benefit: In addition to the retirement pay, additional amounts contributed by individuals can be combined with pension savings accounts and qualify for tax deductions of up to 9 million won annually, with a maximum tax deduction of up to 16.5% based on total salary. See More on Beyul’s Blog