Overview of the Comprehensive Income Tax

Comprehensive income refers to the total amount of interest, dividends, business income (including personal service income subject to 3.3% withholding), wages, pensions, and other income.

1. 1

   Aggregate Total Comprehensive Income

   Interest income, Dividend income, Business income (including rental), Employment income, Pension income, Other income

2. 2

   Apply Income Deductions

   Basic deduction (self, spouse, dependents), Additional deduction (senior, disabled, etc.), Pension insurance premium deduction, Housing loan interest deduction for senior pensions, Other applicable deductions

3. 3

   Calculate Tax Base

   Total income − Deductions = Tax Base

4. 4

   Apply Progressive Tax Rates

   Apply 6%–45% rates based on tax brackets → Pre-credit Tax Amount

5. 5

   Apply Tax Credits / Reductions

   Special tax credits (insurance, medical, education, donations), Bookkeeping tax credit, Foreign tax credit, Disaster loss credit, Other credits/reductions

6. 6

   Add Penalties (if applicable)

   Failure-to-file penalty, Under/over-reporting penalty, Late payment penalty, Documentation or bookkeeping penalty

7. 7

   Subtract Prepaid Taxes

   Interim prepayments, Taxes already assessed/paid, Withholding amounts

8. 8

   Final Tax Payable or Refundable

   Final amount to be paid or refunded after all adjustments

Even if income tax is withheld monthly, you may still be required to file a tax return.

• Only wage income and year-end settlement completed by your employer in February → No filing required
• Income from two or more employers → Filing required
• Both domestic and overseas income → Filing required
• Income from one company but only 3.3% withholding applied → Filing required

• Failure-to-file penalty: Up to 20% of the unpaid tax amount
• Late payment penalty: 0.022% per day on the unpaid amount until paid