CalcHub
Free Salary & Tax CalculatorAs of 2024
📝 Enter Income Information
Payment amount
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💡 Business Income (Freelancer) 3.3% = Income Tax 3% + Local Income Tax 0.3%. Effective Tax Rate on Other Income 8.8% = Payment Amount × (1-0.6) × 22%
📊 Calculation result
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After entering the amount
Calculate Withholding TaxPlease press .
Net income
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Payment amount (pre-tax)—
income tax—
Local income tax—
Total withholding tax—
Net income—
Applicable tax rate—
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What is withholding tax?
Withholding tax is a system in which the payer of income (the withholding agent) deducts taxes in advance and pays them to the government when paying income. 3.3% applies to business income, such as fees for freelancers, instructors, and consulting.
Withholding tax on business income (3.3%)
Withholding tax = Payment amount × 3.3%
(Income tax 3% + Local income tax 0.3%)
Net Amount Received = Payment Amount × 96.7%
(Income tax 3% + Local income tax 0.3%)
Net Amount Received = Payment Amount × 96.7%
Withholding tax on other income (8.8%)
Taxable Base = Payment Amount × (1 – 0.6) = Payment Amount × 40%
Income Tax = Taxable Income × 20% = Payment Amount × 8%
Local Income Tax = Income Tax × 10% = Payment Amount × 0.8%
Effective tax rate = 8.8%
Income Tax = Taxable Income × 20% = Payment Amount × 8%
Local Income Tax = Income Tax × 10% = Payment Amount × 0.8%
Effective tax rate = 8.8%
💡 If your annual other income is 3 million won or less, you may choose separate taxation. If it exceeds 3 million won, you are subject to filing for comprehensive income tax.
Frequently Asked Questions
What is Freelancer 3.3%?
The withholding tax rate for business income is 3.31 TP3T (income tax 31 TP3T + local income tax 0.31 TP3T). Since the tax is already withheld at the time of payment, it is settled when filing the comprehensive income tax return in May of the following year.
If I pay more withholding tax, can I get a refund?
Yes, if you recalculate your tax by applying various deductions when filing your comprehensive income tax return, the withheld tax may be refunded. Conversely, additional payment may be required.
What is the difference between other income and business income?
Business income applies to work performed continuously and repeatedly (freelancers). Other income applies to temporary and incidental income (lecture fees, manuscript fees, prize money, etc.). Which category applies is determined by the continuity of the income.