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  • confusedsafferinkorea
  • Waygook Lord

    • 5188

    • October 08, 2010, 01:02:32 pm
    • Zhubei, Hsinchu Province, Taiwan
    more
Tax rate on severance pay
« on: February 14, 2014, 01:55:08 pm »
Does anyone know what % tax you pay on your severance pay?

Thanks.
There is no known medical cure for stupidity!


  • donuts81
  • Hero of Waygookistan

    • 1364

    • October 20, 2010, 10:23:37 am
    • Korea
Re: Tax rate on severance pay
« Reply #1 on: February 14, 2014, 02:04:29 pm »
Shouldn't it be taxed at whatever your normal tax rate is?
"You can't hurt me now, Mr Lee. I've lost all feeling"


Re: Tax rate on severance pay
« Reply #2 on: February 14, 2014, 02:16:08 pm »
About 6% if your total severance payment is less that 12,000,000.

Severance Pay is not income, so rules are a little different.

Check page 125 of the following link for more of an explanation.
http://www.nts.go.kr/wtsnts_skin/board_skin/mdl/mdlFileDown.asp?minfoKey=MINF7420080211223143&key=260132


  • confusedsafferinkorea
  • Waygook Lord

    • 5188

    • October 08, 2010, 01:02:32 pm
    • Zhubei, Hsinchu Province, Taiwan
    more
Re: Tax rate on severance pay
« Reply #3 on: February 14, 2014, 02:40:22 pm »
Thanks for the info, wow the tax is quite hectic, especially if you are a long-timer here.

If I can stay another year after this contract, then my tax on my severance after 6 years and 9 months is pretty much 1,600,000 won.
There is no known medical cure for stupidity!