Did you apply for "Tax Reduction" of SME employee: Getting 2 Mil.won back

1. Submission of Tax Reduction Application

Employees who wish to apply for tax reduction must submit the "Small and Medium Enterprise (SME) Employment Income Tax Reduction Application Form" (Form No. 11 of the Special Tax Treatment Restriction Law) to the withholding agent (Employer) by the end of the month following the month of employment. (Retroactive submission is possible)

• Relevant documents must be attached at the time of submission:
  

  • Documents proving military service period (e.g., military service record)

  • Copy of disability registration certificate (handbook, welfare card)

  • Withholding receipt for employment income (In the case of youths who have received SME employment tax reduction and are employed by another SME or re-employed by the same SME)

2. Request for Adjustment

If applying for a tax reduction retroactively after year-end settlement, the following documents must be prepared for the employee to apply for the reduction through a comprehensive income tax adjustment claim:

• One copy of the SME Employment Income Tax Reduction Application Form.

• One copy of the SME Employment Income Tax Reduction Statement.

3. Retired Workers

Retired workers can apply by submitting the tax reduction application and adjustment claim forms, along with the above-mentioned documents, to the tax office of their residential jurisdiction.

• From January 1, 2019, retired employee can apply for a tax reduction to the head of the tax office in their jurisdiction.

For more details, please send an e-mail to jz@taxjz.com or If you would like a free consultation with an English-speaking Accountant in Korea, please schedule a call at: Schedule a Call with Jz

Sources: National Tax Service