Withholding Tax Penalty Calculator

Withholding Tax Penalty Calculator helps estimate Korea-related income tax from income, deductions, rates, and credits in English.

Withholding tax penalty inputs

Withholding tax

₩300,000

Local tax ₩30,000

Overdue days

31 days

Penalty days capped at 31 days

Penalty after reduction

₩2,475

3개월 이내 (75% 감면)

Grand total due

₩332,475

National and local tax plus penalties.

Calculates Korean withholding tax, local income tax, late-payment penalty, non-withholding penalty, reduction, and statutory caps. This English calculator calls the same pure tax calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic value-times-rate stub.

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Withholding tax penalty calculator

This English page follows the Korean withholding-tax penalty model for national withholding tax, local income tax, late-payment penalty, non-withholding penalty, reductions, and statutory caps.

Base withholding and local tax

The model first calculates withholding tax from the gross payment and selected national withholding rate. For freelancer business income, the typical national rate is 3 percent, with local income tax often making the cash withholding 3.3 percent.

Local income tax is calculated as 10 percent of the national withholding tax. Interest, dividend, and other income cases often include local tax in the practical withholding percentage, but the calculator keeps the national and local components visible.

Late-payment penalty

For tax withheld but paid late, the Korean source applies a 3 percent fixed late-payment penalty plus daily interest at 0.022 percent per day when the unpaid tax is at least KRW 1.5 million.

Daily interest days are capped at 1,825 days. The general national penalty cap is 50 percent, while the before-notice SME cap can be 10 percent in the modeled scenario. Local penalty is capped separately at 10 percent.

Reduction by filing timing

Corrected filing and late filing can reduce penalties depending on timing. The source table includes 90 percent correction reduction within one month, 75 percent within three months, 50 percent within six months, and smaller reductions up to two years.

Non-withholding or under-withholding is modeled separately using the penalty rate attached to the income type. Use the result with actual due dates, payment dates, notices, and filing status.