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Withholding Tax

Korea's business-income withholding is 3% income tax plus 0.3% local tax, or 3.3% in total. What is left after that is what reaches your account.

Your numbers

Net amount

2,901,000

Tax

99,000

Formula

Net amount = Gross amount × (1 − Rate ÷ 100)

The withheld amount is settled when you file your annual return — with low income much of it comes back as a refund.

What to enter

InputDefaultAccepted range
Gross amountThe contracted amount before any deduction.3,000,0000 and up
Rate (%)The rate applied — usually per year.3.30 and up

Step by step

FormulaNet amount = Gross amount × (1 − Rate ÷ 100)
With the default numbersNet amount = 3,000,000 × (1 − 3.3 ÷ 100)
AnswerNet amount = 2,901,000

Quick reference table

Results when only Gross amount changes and everything else stays put.

Gross amountNet amountTax
1,500,0001,450,50049,500
2,250,0002,175,75074,250
3,000,0002,901,00099,000
4,500,0004,351,500148,500
6,000,0005,802,000198,000

What each result means

ResultAt default values
Net amountWhat lands in your account after tax.2,901,000
TaxThe tax withheld or charged, as money.99,000

Common mistakes

The withheld amount is settled when you file your annual return — with low income much of it comes back as a refund.

Glossary

Gross amount
The contracted amount before any deduction.
Rate
The rate applied — usually per year.
Net amount
What lands in your account after tax.
Tax
The tax withheld or charged, as money.

Frequently asked questions

Q. How is Withholding Tax calculated?

Net amount = Gross amount × (1 − Rate ÷ 100) — Korea's business-income withholding is 3% income tax plus 0.3% local tax, or 3.3% in total. What is left after that is what reaches your account.

Q. Can you walk through an example?

With Gross amount 3,000,000, Rate 3.3%, the answer is Net amount 2,901,000.

Q. What do I need to enter?

Enter Gross amount, Rate. The result recalculates as you type, and an empty box counts as zero.

Q. How much does the answer move if I change a number?

Changing only Gross amount moves the answer to Gross amount 1,500,000 → Net amount 1,450,500 and Gross amount 6,000,000 → Net amount 5,802,000. The table below lays out five steps.

Q. How are the numbers rounded?

Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.

Q. Anything to watch out for?

The withheld amount is settled when you file your annual return — with low income much of it comes back as a refund.

Related calculators

Tax rates and interest conventions differ by country and product — check your contract for real transactions.