(1) Income tax which a withholding agent withholds when he/she pays a bonus or pay in the nature of a bonus (hereinafter referred to as "bonus, etc.") falling under wage and salary income shall be calculated according to the following classification. The same shall also apply to a bonus, etc. received by any person exempted from income tax on wage and salary income by applying the global income deduction:
1. Bonus, etc. to be paid in a given period:The amount calculated by deducting the tax withheld and paid (excluding penalty tax) on wage and salary income during such period subject to payment from the amount calculated by multiplying the amount computed according to the simplified tax withholding table on the aggregate of the amount calculated by dividing the amount of such bonus, etc. by the number of months of the period subject to payment and the monthly average salary other than a bonus, etc. of such period subject to payment by the number of months of the period subject to payment shall be the amount of such tax;
2. Bonus, etc. with no period subject to payment:The amount calculated pursuant to subparagraph 1, considering from January 1 in the taxable period in which a person has received a bonus, etc. to the month in which the date of payment of such bonus, etc. falls the period subject to payment, shall be the amount of such tax. In such cases, if he/she has received a bonus, etc. on two or more occasions in such taxable period, the amount of tax shall be calculated by considering the period from the month following the month in which the date he/she receives a bonus, etc. falls to the month in which the date he/she receives another bonus, etc. falls thereafter as the period subject to payment;
3. In the calculation of subparagraphs 1 and 2, where the period subject to payment exceeds one year, it shall be deemed one year, and where there is an odd amount less than one month, it shall be deemed one month.
(2) Income tax withheld when a withholding agent pays a bonus, etc. according to disposition of a surplus shall be calculated, as prescribed by Presidential Decree.
(3) In the calculation of tax to be collected from a bonus, etc., the method of application of the period subject to payment and other necessary matters shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]