Checking if You Are Subject to Comprehensive Taxation on Financial Income

If your financial income exceeds 20 million won? Comprehensive taxation vs. Separate taxation, what is the difference?When the money earned from financial products, interest, and dividends accumulate, it sometimes exceeds 20 million won. From this point on, it is not simply a matter of withholding tax, but you must report comprehensive income tax including other income. This is calledComprehensive taxation of financial income。

Why is comprehensive taxation disadvantageous?

• Higher tax rate: The comprehensive income tax rate varies depending on the income bracket, and can be applied up to 45%. On the other hand, separate taxation applies a single tax rate of 15.4%.
• Complex reporting procedures: Reporting comprehensive income tax is more complicated than separate taxation, and must be reported directly.

So, how can I check if I am subject to comprehensive taxation?

🔗 Two ways to check for comprehensive taxation of financial income

1. Checking directly on the National Tax Service Hometax website

• Interest/Dividend Income Inquiry: Log in to Hometax and click on 'Financial Income Inquiry' in the 'Comprehensive Income Tax Return' menu.
• Health Insurance Corporation Notification Data Inquiry: Click on 'Other Tax Information' in the 'My Hometax' menu and select 'Financial Income Inquiry (Health Insurance Corporation Notification Data)'.

2. How should I prepare for comprehensive taxation of financial income?

• Utilizing tax-saving products: You can reduce your financial income by utilizing tax-saving products such as non-taxable comprehensive savings and ISA accounts.
• Consultation with professionals: It is better to consult with a tax professional for complex tax reduction methods to find customized solutions.

Frequently Asked Questions (FAQ)

• Do I have to do comprehensive taxation of financial income every year? If your financial income exceeds 20 million won each year, you must file a comprehensive income tax return for that year.
• Do I have to do comprehensive taxation even if I have no other income besides financial income? Yes, if your financial income alone exceeds 20 million won, you are subject to comprehensive taxation.
• What are the disadvantages of not doing comprehensive taxation? You may suffer disadvantages such as surcharges.