(1) Retirement income shall be the following income, generated in the relevant taxable period: <Amended by Act No. 11611, Jan. 1, 2013>
1. A lump sum allowance received pursuant to the public pension-related Acts;
2. A lump sum allowance received upon retirement based of the amount to be borne by users;
3. Other incomes prescribed by Presidential Decree, which are similar to those under subparagraphs 1 and 2.
(2) The retirement income under paragraph (1) 1 shall be the lump sum payment received based on either contributions to pension or employer contributions made on or after January 1, 2002, or on the labor offered on or after January 1, 2002. <Amended by Act No. 11611, Jan. 1, 2013>
(3) The amount of retirement income shall be the sum of the income specified in each subparagraph of paragraph (1) (excluding the amount of non-taxable income): Provided, That, if the amount of retirement income of any of the executives specified by Presidential Decree (excluding the amount under paragraph (1) 1; referring to the amount after deducting the amount of retirement income specified by Presidential Decree, if the executive is entitled to receiving the retirement income, supposing that the executive retired on December 31, 2011) exceeds the amount calculated in accordance with the following formula, such excess shall be deemed wage and salary income, notwithstanding paragraph (1): <Amended by Act No. 11146, Jan. 1, 2012; Act No. 11611, Jan. 1, 2013; Act No. 12852, Dec. 23, 2014; Dec. 31, 2019>The annual average amount of gross pay earned during the three-year period retroactive to December 31, 2019 (if the period of employment is less than three years, the applicable employment period) x 1/10 x The period of employment from January 1, 2012 to December 31, 2019/12 x 3 + The annual average amount of gross pay earned during the three-year period retroactive to the date of retirement (if the period of employment from January 1, 2020 to the date of retirement is less than three years, the applicable employment period) x 1/10 x The period of employment after January 1, 2020 x 2(4) For the purpose of applying the proviso to paragraph (3) and the formula in paragraph (3), the employment period and gross pay shall be calculated as follows: <Amended by Act No. 12852, Dec. 23, 2014>
1. Employment period: It shall be calculated by the number of months. In such cases, a period of less than one month shall be deemed one month;
2. Gross pay: Wage and salary incomes under Article 20 (1) 1 and 2, including salary and bonus, (excluding non-taxable income under Article 12) shall be aggregated.
(5) Deleted. <by Act No. 11611, Jan. 1, 2013>
(6) The scope and method of calculation of retirement income, and other necessary matters, shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]