(1) The tax base of a resident's global income and retirement income shall be calculated separately.
(2) The tax base of global income (hereinafter referred to as "tax base of global income") shall be the amount determined by applying the deductions under Articles 50, 51, 51-3, 51-4, and 52 (hereinafter referred to as “deductions from global income”) to the aggregate (hereinafter referred to as “global income”) of interest income, dividend income, business income, wage and salary income, pension income, and other income calculated under Articles 16, 17, 19, 20, 20-3, 21, 24 through 26, 27 through 29, 31 through 35, 37, 39, 41 through 46, 46-2, 47, and 47-2. <Amended by Act No. 11611, Jan. 1, 2013; Act No. 12169, Jan. 1, 2014>
(3) None of the following income shall be included when calculating the tax base of global income: <Amended by Act No. 10408, Dec. 27, 2010; Act No. 10854, Jul. 14, 2011; Act No. 11611, Jan. 1, 2013; Act No. 12852, Dec. 23, 2014; Act No. 13558, Dec. 15, 2015; Act No. 15225, Dec. 19, 2017; Act No. 16104, Dec. 31, 2018; Dec. 31, 2019; Dec. 29, 2020>
1. Non-taxable income under the Restriction of Special Taxation Act or Article 12 of this Act;
2. Wage and salary income of a daily employed worker prescribed by Presidential Decree (hereinafter referred to as "daily employed worker");
3. Interest income and dividend income withheld at tax rates under Article 129 (2), and excess repayment from a workplace mutual-aid association pursuant to Article 16 (1) 10;
4. Interest income and dividend income received from a financial company, etc. falling under any item of subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality (hereinafter referred to as "financial company, etc.") by an organization making financial transactions with its name declared, as an organization which does not make distributions to its members among the organizations, other than organizations deemed corporations;
5. Income subject to separate taxation under the Restriction of Special Taxation Act;
6. Interest income and dividend income (excluding dividend income under Article 17 (1) 8), other than those specified in subparagraphs 3 through 5, the total amount of which does not exceed 20 million won (hereinafter referred to as "standard amount of global taxation on interest income, etc.") and is withheld pursuant to Article 127;
7. House rental income of a person the total amount of whose gross earnings specified by Presidential Decree during the relevant taxable period does not exceed 20 million won (hereinafter referred to as “house rental income subject to separate taxation”). In such cases, matters necessary for calculating house rental income, etc. shall be prescribed by Presidential Decree;
8. Other income falling under any of the following (hereinafter referred to as "other income subject to separate taxation"):(a) Other income under Article 21 (1) 1 through 8, 8-2, 9 through 20, 22, 22-2 and 26 (excluding income under items (d) and (e)), the amount of which under paragraph (3) of the same Article does not exceed three million won and is withheld (including where such income is not withheld because it is subject to Article 127 (1) 6 (b)) pursuant to Article 127: Provided, That where a resident with the relevant income intends to include the income when calculating the tax base of global income, such income shall be excluded from other income subject to separate taxation);(b) Other income received other than pensions under Article 21 (1) 21;(c) Other income under Article 21 (1) 27 or Article 21 (2);(d) Among other income under Article 21 (1) 2, the lottery prize defined in Article 2 of the Lottery Tickets and Lottery Fund Act;(e) Among other income under Article 21 (1), other income similar to those under item (d) and prescribed by Presidential Decree;
9. The following pension income, out of the pension income under Article 20-3 (1) 2 and 3 (excluding where a resident with the income referred to in item (c) intends to include it when calculating the tax base of global income; hereinafter referred to as "pension income subject to separate taxation"):(a) Pension income received as retirement income under Article 20-3 (1) 2 (a);(b) Pension income withdrawn in the amount specified in Article 20-3 (1) 2 (b) or (c) where the requirements specified by Presidential Decree are met, for the purpose of medical treatment or due to a natural disaster or any other inevitable circumstances;(c) Pension income where the sum of any pension income other than the income referred to in items (a) and (b) does not exceed 12 million won per year;
10. Deleted. <by Act No. 11611, Jan. 1, 2013>
(4) When calculating the standard amount of global taxation on interest income, etc. pursuant to paragraph (3) 6, no amount to be added pursuant to the proviso to Article 17 (3) shall be included in dividend income.
(5) Among income falling under paragraph (3) 3 through 6, interest income shall be called as "interest income subject to separate taxation", and dividend income as "dividend income subject to separate taxation."(6) The tax base on retirement income (hereinafter referred to as "tax base on retirement income") shall be the amount obtained by deducting the retirement income under Article 48 from the amount of retirement income under Article 22.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009][Enforcement Date: Jan. 1, 2025] Article 14 (3) 3 (c) (limited to the part pertaining to Article 21 (1) 27)