(1) When a withholding agent pays retirement income, he/she shall collect the income tax calculated by applying the withholding tax rate to the tax base of retirement income.
(2) Where a resident’s retirement income falls under any of the following cases, notwithstanding paragraph (1), no income tax on the relevant retirement income shall be withheld before the resident receives any payment other than pension. In such cases, where the income tax has already been withheld pursuant to paragraph (1), the resident may request for refund of the withheld tax amount: <Amended by Act No. 12169, Jan. 1, 2014>
1. Where the retirement income is in a pension account or being paid into a pension account as of the date of retirement;
2. Where the retirement income is deposited in a pension account within 60 days from the date of receiving the same after retirement.
(3) A person who pays retirement income shall issue a withholding tax receipt prescribed by Ordinance of the Ministry of Strategy and Finance, stating the amount of such retirement income and other necessary matters, to a recipient of retirement income by no later than the end of the month following the month in which the date of such payment falls: Provided, That where he/she did not withhold the income tax on the retirement income pursuant to paragraph (2), he/she shall issue the aforementioned receipt with a statement specifying the reason for not withholding the income tax.
(4) Matters necessary concerning the method of withholding tax on retirement income and the refund procedure thereof, etc. shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 11611, Jan. 1, 2013]