{"content_id":"phknh89tta","slug":"korea-pension-income-tax-filing-guide","locale":"en","schema_type":"Article","category":"knowledge_base","category_name":"Knowledge Base","title":"Comprehensive Income Tax Filing Rules for Pensioners","summary":"Public pensions, pension savings and retirement pensions, and savings insurance differ in how the income is classified and in their filing requirements. In particular, even when private pension income exceeds 15 million won, you may choose between comprehensive taxation and separate taxation at 15%.","author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["If you receive only a public pension and the paying institution has completed year-end tax settlement, you can generally omit filing a final comprehensive income tax return.","If taxable private pension income exceeds 15 million won per year, you may choose either comprehensive taxation or separate taxation at 15%.","Payments received from a retirement account as retirement benefits are subject to retirement income taxation rules, rather than the general 15 million won threshold for private pensions.","If savings insurance meets the tax-exemption requirements, no income tax is imposed on the insurance gain; otherwise, the gain may be treated as interest income.","If the annual total of interest and dividend income exceeds 20 million won, it is generally subject to comprehensive taxation of financial income."],"content_markdown":"Not all pension payments are taxed in the same way. Public pensions such as the National Pension, private pensions received from pension savings accounts and IRPs, pensions funded by retirement benefits, and annuity-style payments from savings insurance are each classified differently for income and filing purposes.\n\nThe standards below are general income tax treatment principles for residents of South Korea. When filing an actual return, you should review the source of the pension, tax-exempt amounts, whether you have other income, and the tax laws applicable to the relevant year.\n\n## Overview of Taxation by Pension Type\n\n| Type of Payment | Main Classification Under Tax Law | Key Filing Standard |\n|---|---|---|\n| Public pensions such as the National Pension and Government Employees Pension | Pension income | If you have only public pension income and the paying institution has completed the year-end tax settlement, a final return can generally be omitted |\n| Tax-deductible contributions and investment earnings from pension savings accounts and IRPs | Private pension income | The available taxation options differ depending on whether the annual taxable amount is at most 15 million won or more than 15 million won |\n| Payments received after transferring retirement benefits to a pension account | Retirement income | Retirement income taxation rules apply, rather than the 15 million won threshold for private pensions |\n| Savings insurance meeting tax-exemption requirements | Tax-exempt insurance gains | No income tax is imposed on insurance gains that meet the requirements |\n| Savings insurance that does not meet tax-exemption requirements | Interest income | If total annual interest and dividend income exceeds 20 million won, comprehensive taxation of financial income applies in principle |\n\n## If You Receive a Public Pension\n\n### What Is Public Pension Income?\n\nPublic pension income refers to the taxable portion of pensions received regularly under applicable laws, including the National Pension, Government Employees Pension, Military Pension, and Private School Teachers Pension.\n\nNot all payments are necessarily taxable simply because they come from a public pension. In general, the portion of pension payments corresponding to contributions made on or after January 1, 2002 is taxable, while portions corresponding to tax-exempt contributions may be excluded. Disability pensions and survivor pensions may be tax-exempt under applicable laws.\n\n### When You Can Omit Filing If You Have Only Public Pension Income\n\nPension-paying institutions withhold income tax each month from taxable public pension payments and perform year-end tax settlements. Therefore, if the following conditions are met, you generally do not need to file a final comprehensive income tax return in May of the following year.\n\n- Your only taxable income is public pension income.\n- The paying institution properly completed the year-end tax settlement for your public pension.\n- You do not need to claim any omitted income deductions or tax credits.\n\n### Must You File If You Have Any Other Income?\n\nIf you have other comprehensive income subject to aggregation, such as employment income, business income, or rental income, the general rule is to combine it with your public pension income and file a return. However, merely having other income does not automatically create a filing obligation.\n\nTax-exempt income, retirement income, capital gains, or income for which separate taxation is permitted by law may be excluded from comprehensive income aggregation. The treatment of small amounts of other income also varies depending on whether separate taxation applies, so you must first identify the type of income.\n\n## If You Receive a Private Pension Such as Pension Savings or an IRP\n\n### Taxable Sources of Private Pension Payments\n\nThe taxation of money withdrawn from a pension account varies depending on its source.\n\n1. **Pension savings and IRP contributions for which a tax credit was claimed**: When received as a pension, they are taxed as pension income.\n2. **Investment earnings in the account**: When withdrawn after satisfying the pension payment requirements, they are taxed as pension income.\n3. **Your own contributions for which no tax credit was claimed**: These are tax-exempt amounts and, in principle, are not taxed again.\n4. **Retirement benefits transferred to a pension account**: Even when received as a pension, they are taxed under the retirement income taxation system.\n\nTherefore, the total pension payment reported by a financial institution may differ from the taxable pension income used to determine whether the 15 million won private pension threshold has been exceeded.\n\n### Annual Threshold of 15 Million Won\n\nTaxable private pension income generated from pension savings accounts, IRPs, and similar accounts is determined by combining amounts from multiple financial institutions and accounts. You do not simply add public pension payments or pension payments funded by retirement benefits when determining whether the 15 million won threshold has been exceeded.\n\n| Annual Taxable Private Pension Income | Generally Available Taxation Options |\n|---|---|\n| At most 15 million won | Separate taxation at the low pension income withholding tax rate or comprehensive taxation |\n| More than 15 million won | Comprehensive taxation or separate taxation at 15% |\n\nIf you choose separate taxation at 15%, the effective withholding burden, including local income tax, is generally 16.5%. If you choose comprehensive taxation, the income is combined with other comprehensive income, after which progressive tax rates, the pension income deduction, and various other deductions are applied.\n\nTherefore, private pension income exceeding 15 million won is not necessarily subject only to comprehensive taxation. Comprehensive taxation may be more favorable if you have little other income and large deductions, while separate taxation at 15% may be more favorable if you have substantial employment, business, rental, or other income subject to high progressive tax rates.\n\n### Private Pension Withholding Tax Rates\n\nPrivate pensions that satisfy the normal pension payment requirements are generally subject to the following income tax rates based on your age when receiving the pension. The rates below that include local income tax reflect an additional 10% of the income tax amount.\n\n| Age When Receiving the Pension | Income Tax Rate | Including Local Income Tax |\n|---|---:|---:|\n| Less than age 70 | 5% | 5.5% |\n| At least age 70 but less than age 80 | 4% | 4.4% |\n| At least age 80 | 3% | 3.3% |\n\nSeparate rates and requirements may apply to lifetime annuity contracts or withdrawals for medical purposes. In addition, withdrawals that do not satisfy the pension payment age, enrollment period, or pension withdrawal limit may be treated as non-pension withdrawals and subject to higher rates as other income or a similar income category.\n\n### Why a Refund or Additional Payment May Be Due Even After Withholding\n\nTax withheld by a financial institution may be a prepaid tax rather than the final tax amount. If you choose comprehensive taxation or have other comprehensive income that must be reported, the final tax is recalculated to reflect the following items.\n\n- Amount of other comprehensive income\n- Pension income deduction\n- Personal deductions and other income deductions\n- Tax credits\n- Tax already withheld\n\nIf the amount withheld exceeds the final tax, you receive a refund; if it is less, you must make an additional payment.\n\n## If You Receive Retirement Benefits as a Pension\n\nAn IRP may contain both personal contributions and retirement benefits, but they are classified for tax purposes according to their source.\n\nIf retirement benefits are transferred to a pension account and then received as a pension, the retirement income tax burden may be lower than if they were received immediately as a lump sum upon retirement. In general, the structure provides a partial reduction in deferred retirement income tax based on the actual period over which the pension is received.\n\nThese amounts must be distinguished from tax-deductible contributions and investment earnings included in the usual 15 million won private pension income threshold. The most accurate approach is to review the pension account statement by source or the withholding tax receipt provided by the financial institution.\n\n## If You Receive Payments from Savings Insurance in Annuity Form\n\n### Tax-Exemption Requirements Matter More Than the Product Name\n\nEven if products such as general annuity insurance, variable annuity insurance, and immediate annuity insurance include the word “annuity” in their names, they may not be pension accounts like pension savings accounts under tax law. Whether these products are taxable depends on whether they satisfy the savings insurance tax-exemption requirements applicable to insurance gains.\n\n- **Tax-exemption requirements met**: No income tax is imposed on the insurance gains.\n- **Tax-exemption requirements not met**: The insurance gains may be taxed as interest income.\n\nTax-exemption requirements vary according to the contract maintenance period, payment method, premium limits, lifetime annuity payment conditions, and other factors. Not all savings insurance is tax-exempt merely because it has been maintained for at least 10 years.\n\n### Interest Income Is Not the Entire Pension Payment\n\nThe taxable amount is generally not the premiums paid but the insurance gain calculated by subtracting the paid premiums from the insurance proceeds or surrender value. For contracts that make payments in annuity installments, the insurer may calculate the taxable interest portion for each payment.\n\n### Financial Income Threshold of 20 Million Won\n\nTaxable insurance gains are combined with other interest income, such as deposit interest, and dividend income.\n\n- If total annual interest and dividend income is **at most 20 million won**, taxation is generally completed through withholding.\n- If the annual total is **more than 20 million won**, all financial income must, in principle, be combined with other comprehensive income and reported.\n\nThe 20 million won threshold is determined, in principle, based on financial income before tax rather than the amount deposited after tax. Tax-exempt financial income and certain separately taxed financial income may be excluded when determining whether comprehensive taxation of financial income applies.\n\n## Documents to Review Before Filing\n\nPreparing the following documents can help reduce duplication or omissions when aggregating pension income.\n\n1. Pension income withholding tax receipt from the public pension-paying institution\n2. Pension income withholding tax receipts from each financial institution holding pension savings accounts or IRPs\n3. Pension account details by source of funds\n4. Retirement income withholding tax receipt\n5. Savings insurance tax-exemption status and insurance gain statement\n6. Interest and dividend income payment statements\n7. Documents for other comprehensive income, including employment, business, rental, and other income\n\nReview payment statements and income records on the National Tax Service’s Hometax system, and verify that data from all financial institutions has been included. Even if you did not receive a filing notice, you may still be required to file if you meet the statutory filing requirements.\n\n## Practical Decision-Making Process\n\n1. Classify the money received as a public pension, pension account payment, retirement benefit-funded payment, or savings insurance payment.\n2. Check the taxable amount of each item rather than the total amount received.\n3. For private pensions, combine taxable pension income from multiple accounts and apply the 15 million won threshold.\n4. Combine insurance gains with other interest and dividend income and apply the 20 million won threshold.\n5. Check whether you have comprehensive income subject to aggregation, such as employment, business, or rental income.\n6. Compare the estimated tax under the available comprehensive taxation and separate taxation options.\n7. Determine whether to file in May of the following year and account for tax already withheld.\n\n## Points to Note\n\nPension taxation rules may be revised, and even within the same IRP, taxation varies depending on the source of the funds. Do not determine your filing obligation solely based on the fact that you “received it as a pension” or on the account’s total deposits. You must review the type of income and taxable amount shown on the withholding tax receipt.","content_html":"\u003cp\u003eNot all pension payments are taxed in the same way. Public pensions such as the National Pension, private pensions received from pension savings accounts and IRPs, pensions funded by retirement benefits, and annuity-style payments from savings insurance are each classified differently for income and filing purposes.\u003c/p\u003e\n\u003cp\u003eThe standards below are general income tax treatment principles for residents of South Korea. When filing an actual return, you should review the source of the pension, tax-exempt amounts, whether you have other income, and the tax laws applicable to the relevant year.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#overview-of-taxation-by-pension-type\" class=\"anchor\" id=\"overview-of-taxation-by-pension-type\"\u003e\u003c/a\u003eOverview of Taxation by Pension Type\u003c/h2\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eType of Payment\u003c/th\u003e\n\u003cth\u003eMain Classification Under Tax Law\u003c/th\u003e\n\u003cth\u003eKey Filing Standard\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Type of Payment\"\u003ePublic pensions such as the National Pension and Government Employees Pension\u003c/td\u003e\n\u003ctd data-label=\"Main Classification Under Tax Law\"\u003ePension income\u003c/td\u003e\n\u003ctd data-label=\"Key Filing Standard\"\u003eIf you have only public pension income and the paying institution has completed the year-end tax settlement, a final return can generally be omitted\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Type of Payment\"\u003eTax-deductible contributions and investment earnings from pension savings accounts and IRPs\u003c/td\u003e\n\u003ctd data-label=\"Main Classification Under Tax Law\"\u003ePrivate pension income\u003c/td\u003e\n\u003ctd data-label=\"Key Filing Standard\"\u003eThe available taxation options differ depending on whether the annual taxable amount is at most 15 million won or more than 15 million won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Type of Payment\"\u003ePayments received after transferring retirement benefits to a pension account\u003c/td\u003e\n\u003ctd data-label=\"Main Classification Under Tax Law\"\u003eRetirement income\u003c/td\u003e\n\u003ctd data-label=\"Key Filing Standard\"\u003eRetirement income taxation rules apply, rather than the 15 million won threshold for private pensions\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Type of Payment\"\u003eSavings insurance meeting tax-exemption requirements\u003c/td\u003e\n\u003ctd data-label=\"Main Classification Under Tax Law\"\u003eTax-exempt insurance gains\u003c/td\u003e\n\u003ctd data-label=\"Key Filing Standard\"\u003eNo income tax is imposed on insurance gains that meet the requirements\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Type of Payment\"\u003eSavings insurance that does not meet tax-exemption requirements\u003c/td\u003e\n\u003ctd data-label=\"Main Classification Under Tax Law\"\u003eInterest income\u003c/td\u003e\n\u003ctd data-label=\"Key Filing Standard\"\u003eIf total annual interest and dividend income exceeds 20 million won, comprehensive taxation of financial income applies in principle\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003ch2\u003e\n\u003ca href=\"#if-you-receive-a-public-pension\" class=\"anchor\" id=\"if-you-receive-a-public-pension\"\u003e\u003c/a\u003eIf You Receive a Public Pension\u003c/h2\u003e\n\u003ch3\u003e\n\u003ca href=\"#what-is-public-pension-income\" class=\"anchor\" id=\"what-is-public-pension-income\"\u003e\u003c/a\u003eWhat Is Public Pension Income?\u003c/h3\u003e\n\u003cp\u003ePublic pension income refers to the taxable portion of pensions received regularly under applicable laws, including the National Pension, Government Employees Pension, Military Pension, and Private School Teachers Pension.\u003c/p\u003e\n\u003cp\u003eNot all payments are necessarily taxable simply because they come from a public pension. In general, the portion of pension payments corresponding to contributions made on or after January 1, 2002 is taxable, while portions corresponding to tax-exempt contributions may be excluded. Disability pensions and survivor pensions may be tax-exempt under applicable laws.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#when-you-can-omit-filing-if-you-have-only-public-pension-income\" class=\"anchor\" id=\"when-you-can-omit-filing-if-you-have-only-public-pension-income\"\u003e\u003c/a\u003eWhen You Can Omit Filing If You Have Only Public Pension Income\u003c/h3\u003e\n\u003cp\u003ePension-paying institutions withhold income tax each month from taxable public pension payments and perform year-end tax settlements. Therefore, if the following conditions are met, you generally do not need to file a final comprehensive income tax return in May of the following year.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eYour only taxable income is public pension income.\u003c/li\u003e\n\u003cli\u003eThe paying institution properly completed the year-end tax settlement for your public pension.\u003c/li\u003e\n\u003cli\u003eYou do not need to claim any omitted income deductions or tax credits.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch3\u003e\n\u003ca href=\"#must-you-file-if-you-have-any-other-income\" class=\"anchor\" id=\"must-you-file-if-you-have-any-other-income\"\u003e\u003c/a\u003eMust You File If You Have Any Other Income?\u003c/h3\u003e\n\u003cp\u003eIf you have other comprehensive income subject to aggregation, such as employment income, business income, or rental income, the general rule is to combine it with your public pension income and file a return. However, merely having other income does not automatically create a filing obligation.\u003c/p\u003e\n\u003cp\u003eTax-exempt income, retirement income, capital gains, or income for which separate taxation is permitted by law may be excluded from comprehensive income aggregation. The treatment of small amounts of other income also varies depending on whether separate taxation applies, so you must first identify the type of income.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#if-you-receive-a-private-pension-such-as-pension-savings-or-an-irp\" class=\"anchor\" id=\"if-you-receive-a-private-pension-such-as-pension-savings-or-an-irp\"\u003e\u003c/a\u003eIf You Receive a Private Pension Such as Pension Savings or an IRP\u003c/h2\u003e\n\u003ch3\u003e\n\u003ca href=\"#taxable-sources-of-private-pension-payments\" class=\"anchor\" id=\"taxable-sources-of-private-pension-payments\"\u003e\u003c/a\u003eTaxable Sources of Private Pension Payments\u003c/h3\u003e\n\u003cp\u003eThe taxation of money withdrawn from a pension account varies depending on its source.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003e\n\u003cstrong\u003ePension savings and IRP contributions for which a tax credit was claimed\u003c/strong\u003e: When received as a pension, they are taxed as pension income.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eInvestment earnings in the account\u003c/strong\u003e: When withdrawn after satisfying the pension payment requirements, they are taxed as pension income.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eYour own contributions for which no tax credit was claimed\u003c/strong\u003e: These are tax-exempt amounts and, in principle, are not taxed again.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eRetirement benefits transferred to a pension account\u003c/strong\u003e: Even when received as a pension, they are taxed under the retirement income taxation system.\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eTherefore, the total pension payment reported by a financial institution may differ from the taxable pension income used to determine whether the 15 million won private pension threshold has been exceeded.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#annual-threshold-of-15-million-won\" class=\"anchor\" id=\"annual-threshold-of-15-million-won\"\u003e\u003c/a\u003eAnnual Threshold of 15 Million Won\u003c/h3\u003e\n\u003cp\u003eTaxable private pension income generated from pension savings accounts, IRPs, and similar accounts is determined by combining amounts from multiple financial institutions and accounts. You do not simply add public pension payments or pension payments funded by retirement benefits when determining whether the 15 million won threshold has been exceeded.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eAnnual Taxable Private Pension Income\u003c/th\u003e\n\u003cth\u003eGenerally Available Taxation Options\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Annual Taxable Private Pension Income\"\u003eAt most 15 million won\u003c/td\u003e\n\u003ctd data-label=\"Generally Available Taxation Options\"\u003eSeparate taxation at the low pension income withholding tax rate or comprehensive taxation\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Annual Taxable Private Pension Income\"\u003eMore than 15 million won\u003c/td\u003e\n\u003ctd data-label=\"Generally Available Taxation Options\"\u003eComprehensive taxation or separate taxation at 15%\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIf you choose separate taxation at 15%, the effective withholding burden, including local income tax, is generally 16.5%. If you choose comprehensive taxation, the income is combined with other comprehensive income, after which progressive tax rates, the pension income deduction, and various other deductions are applied.\u003c/p\u003e\n\u003cp\u003eTherefore, private pension income exceeding 15 million won is not necessarily subject only to comprehensive taxation. Comprehensive taxation may be more favorable if you have little other income and large deductions, while separate taxation at 15% may be more favorable if you have substantial employment, business, rental, or other income subject to high progressive tax rates.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#private-pension-withholding-tax-rates\" class=\"anchor\" id=\"private-pension-withholding-tax-rates\"\u003e\u003c/a\u003ePrivate Pension Withholding Tax Rates\u003c/h3\u003e\n\u003cp\u003ePrivate pensions that satisfy the normal pension payment requirements are generally subject to the following income tax rates based on your age when receiving the pension. The rates below that include local income tax reflect an additional 10% of the income tax amount.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eAge When Receiving the Pension\u003c/th\u003e\n\u003cth\u003eIncome Tax Rate\u003c/th\u003e\n\u003cth\u003eIncluding Local Income Tax\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Age When Receiving the Pension\"\u003eLess than age 70\u003c/td\u003e\n\u003ctd data-label=\"Income Tax Rate\"\u003e5%\u003c/td\u003e\n\u003ctd data-label=\"Including Local Income Tax\"\u003e5.5%\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Age When Receiving the Pension\"\u003eAt least age 70 but less than age 80\u003c/td\u003e\n\u003ctd data-label=\"Income Tax Rate\"\u003e4%\u003c/td\u003e\n\u003ctd data-label=\"Including Local Income Tax\"\u003e4.4%\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Age When Receiving the Pension\"\u003eAt least age 80\u003c/td\u003e\n\u003ctd data-label=\"Income Tax Rate\"\u003e3%\u003c/td\u003e\n\u003ctd data-label=\"Including Local Income Tax\"\u003e3.3%\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eSeparate rates and requirements may apply to lifetime annuity contracts or withdrawals for medical purposes. In addition, withdrawals that do not satisfy the pension payment age, enrollment period, or pension withdrawal limit may be treated as non-pension withdrawals and subject to higher rates as other income or a similar income category.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#why-a-refund-or-additional-payment-may-be-due-even-after-withholding\" class=\"anchor\" id=\"why-a-refund-or-additional-payment-may-be-due-even-after-withholding\"\u003e\u003c/a\u003eWhy a Refund or Additional Payment May Be Due Even After Withholding\u003c/h3\u003e\n\u003cp\u003eTax withheld by a financial institution may be a prepaid tax rather than the final tax amount. If you choose comprehensive taxation or have other comprehensive income that must be reported, the final tax is recalculated to reflect the following items.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eAmount of other comprehensive income\u003c/li\u003e\n\u003cli\u003ePension income deduction\u003c/li\u003e\n\u003cli\u003ePersonal deductions and other income deductions\u003c/li\u003e\n\u003cli\u003eTax credits\u003c/li\u003e\n\u003cli\u003eTax already withheld\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eIf the amount withheld exceeds the final tax, you receive a refund; if it is less, you must make an additional payment.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#if-you-receive-retirement-benefits-as-a-pension\" class=\"anchor\" id=\"if-you-receive-retirement-benefits-as-a-pension\"\u003e\u003c/a\u003eIf You Receive Retirement Benefits as a Pension\u003c/h2\u003e\n\u003cp\u003eAn IRP may contain both personal contributions and retirement benefits, but they are classified for tax purposes according to their source.\u003c/p\u003e\n\u003cp\u003eIf retirement benefits are transferred to a pension account and then received as a pension, the retirement income tax burden may be lower than if they were received immediately as a lump sum upon retirement. In general, the structure provides a partial reduction in deferred retirement income tax based on the actual period over which the pension is received.\u003c/p\u003e\n\u003cp\u003eThese amounts must be distinguished from tax-deductible contributions and investment earnings included in the usual 15 million won private pension income threshold. The most accurate approach is to review the pension account statement by source or the withholding tax receipt provided by the financial institution.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#if-you-receive-payments-from-savings-insurance-in-annuity-form\" class=\"anchor\" id=\"if-you-receive-payments-from-savings-insurance-in-annuity-form\"\u003e\u003c/a\u003eIf You Receive Payments from Savings Insurance in Annuity Form\u003c/h2\u003e\n\u003ch3\u003e\n\u003ca href=\"#tax-exemption-requirements-matter-more-than-the-product-name\" class=\"anchor\" id=\"tax-exemption-requirements-matter-more-than-the-product-name\"\u003e\u003c/a\u003eTax-Exemption Requirements Matter More Than the Product Name\u003c/h3\u003e\n\u003cp\u003eEven if products such as general annuity insurance, variable annuity insurance, and immediate annuity insurance include the word “annuity” in their names, they may not be pension accounts like pension savings accounts under tax law. Whether these products are taxable depends on whether they satisfy the savings insurance tax-exemption requirements applicable to insurance gains.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003e\n\u003cstrong\u003eTax-exemption requirements met\u003c/strong\u003e: No income tax is imposed on the insurance gains.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eTax-exemption requirements not met\u003c/strong\u003e: The insurance gains may be taxed as interest income.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eTax-exemption requirements vary according to the contract maintenance period, payment method, premium limits, lifetime annuity payment conditions, and other factors. Not all savings insurance is tax-exempt merely because it has been maintained for at least 10 years.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#interest-income-is-not-the-entire-pension-payment\" class=\"anchor\" id=\"interest-income-is-not-the-entire-pension-payment\"\u003e\u003c/a\u003eInterest Income Is Not the Entire Pension Payment\u003c/h3\u003e\n\u003cp\u003eThe taxable amount is generally not the premiums paid but the insurance gain calculated by subtracting the paid premiums from the insurance proceeds or surrender value. For contracts that make payments in annuity installments, the insurer may calculate the taxable interest portion for each payment.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#financial-income-threshold-of-20-million-won\" class=\"anchor\" id=\"financial-income-threshold-of-20-million-won\"\u003e\u003c/a\u003eFinancial Income Threshold of 20 Million Won\u003c/h3\u003e\n\u003cp\u003eTaxable insurance gains are combined with other interest income, such as deposit interest, and dividend income.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eIf total annual interest and dividend income is \u003cstrong\u003eat most 20 million won\u003c/strong\u003e, taxation is generally completed through withholding.\u003c/li\u003e\n\u003cli\u003eIf the annual total is \u003cstrong\u003emore than 20 million won\u003c/strong\u003e, all financial income must, in principle, be combined with other comprehensive income and reported.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eThe 20 million won threshold is determined, in principle, based on financial income before tax rather than the amount deposited after tax. Tax-exempt financial income and certain separately taxed financial income may be excluded when determining whether comprehensive taxation of financial income applies.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#documents-to-review-before-filing\" class=\"anchor\" id=\"documents-to-review-before-filing\"\u003e\u003c/a\u003eDocuments to Review Before Filing\u003c/h2\u003e\n\u003cp\u003ePreparing the following documents can help reduce duplication or omissions when aggregating pension income.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003ePension income withholding tax receipt from the public pension-paying institution\u003c/li\u003e\n\u003cli\u003ePension income withholding tax receipts from each financial institution holding pension savings accounts or IRPs\u003c/li\u003e\n\u003cli\u003ePension account details by source of funds\u003c/li\u003e\n\u003cli\u003eRetirement income withholding tax receipt\u003c/li\u003e\n\u003cli\u003eSavings insurance tax-exemption status and insurance gain statement\u003c/li\u003e\n\u003cli\u003eInterest and dividend income payment statements\u003c/li\u003e\n\u003cli\u003eDocuments for other comprehensive income, including employment, business, rental, and other income\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eReview payment statements and income records on the National Tax Service’s Hometax system, and verify that data from all financial institutions has been included. Even if you did not receive a filing notice, you may still be required to file if you meet the statutory filing requirements.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#practical-decision-making-process\" class=\"anchor\" id=\"practical-decision-making-process\"\u003e\u003c/a\u003ePractical Decision-Making Process\u003c/h2\u003e\n\u003col\u003e\n\u003cli\u003eClassify the money received as a public pension, pension account payment, retirement benefit-funded payment, or savings insurance payment.\u003c/li\u003e\n\u003cli\u003eCheck the taxable amount of each item rather than the total amount received.\u003c/li\u003e\n\u003cli\u003eFor private pensions, combine taxable pension income from multiple accounts and apply the 15 million won threshold.\u003c/li\u003e\n\u003cli\u003eCombine insurance gains with other interest and dividend income and apply the 20 million won threshold.\u003c/li\u003e\n\u003cli\u003eCheck whether you have comprehensive income subject to aggregation, such as employment, business, or rental income.\u003c/li\u003e\n\u003cli\u003eCompare the estimated tax under the available comprehensive taxation and separate taxation options.\u003c/li\u003e\n\u003cli\u003eDetermine whether to file in May of the following year and account for tax already withheld.\u003c/li\u003e\n\u003c/ol\u003e\n\u003ch2\u003e\n\u003ca href=\"#points-to-note\" class=\"anchor\" id=\"points-to-note\"\u003e\u003c/a\u003ePoints to Note\u003c/h2\u003e\n\u003cp\u003ePension taxation rules may be revised, and even within the same IRP, taxation varies depending on the source of the funds. Do not determine your filing obligation solely based on the fact that you “received it as a pension” or on the account’s total deposits. You must review the type of income and taxable amount shown on the withholding tax receipt.\u003c/p\u003e\n","tags":["Pension income","Comprehensive income tax","Private pension","Public pension","Savings insurance"],"faqs":[{"question":"Do I need to file a comprehensive income tax return if I only receive the National Pension?","answer":"If you have no other comprehensive income to combine with the National Pension and the National Pension Service has properly completed your year-end tax settlement, you may generally omit filing a final return. However, you may need to file a return if you want to claim additional deductions that were omitted or if the year-end tax settlement was not completed."},{"question":"Do I always have to file a return if I have a small amount of other income in addition to public pension income?","answer":"No. It depends on whether the other income is tax-exempt, separately taxed, or subject to aggregation as comprehensive income. In principle, if you have income subject to aggregation, such as employment, business, or rental income, you must file it together with your public pension income. However, retirement income or income designated by law as separately taxable may not need to be aggregated."},{"question":"If my private pension income exceeds KRW 15 million, is it necessarily subject to comprehensive taxation?","answer":"Comprehensive taxation is not necessarily the only option. Under the current general rules, if taxable private pension income exceeds KRW 15 million per year, you may choose either to aggregate it with other comprehensive income or to have it separately taxed at 15%. Including local income tax, the separate taxation burden is generally 16.5%."},{"question":"Is the National Pension included in the KRW 15 million threshold for private pensions?","answer":"Public pensions such as the National Pension are not included in the KRW 15 million threshold for private pensions. This threshold is mainly used when determining taxable private pension income arising from tax-deductible contributions to pension savings accounts and IRPs, as well as investment earnings."},{"question":"Is a retirement benefit received from an IRP included in the KRW 15 million private pension threshold?","answer":"The portion funded by retirement benefits is subject to the retirement income taxation system and is therefore treated separately from the amount used to determine the general KRW 15 million private pension threshold. Because a single IRP may contain retirement benefits, personal contributions, and investment earnings, you should check the financial institution's breakdown by funding source."},{"question":"Are all amounts received from a pension insurance policy treated as interest income?","answer":"No. If a savings-type insurance policy meets the requirements for tax exemption, the insurance gain may be tax-exempt. Even if the requirements are not met, generally it is not the entire principal paid in but the insurance gain—the insurance payout or refund minus the premiums paid—that is taxed as interest income."},{"question":"What types of income are included in the KRW 20 million financial income threshold?","answer":"Taxable deposit interest, bond interest, insurance gains, dividend income, and similar income are aggregated. In principle, the pre-tax amount, rather than the net amount deposited after tax, is used, while tax-exempt financial income and certain separately taxed financial income may be excluded."},{"question":"Can I still owe additional tax after filing a comprehensive income tax return even if tax was already withheld from my pension?","answer":"Yes. Withholding tax may be a tax prepayment. If the final tax calculated after aggregating your other comprehensive income is greater than the amount withheld, you must pay the difference. If the final tax after applying deductions and other adjustments is lower, you may receive a refund."},{"question":"If I receive pensions from multiple financial institutions, is the KRW 15 million threshold applied separately to each one?","answer":"No. The KRW 15 million threshold is not applied separately by financial institution or account; it is determined by aggregating taxable private pension income for the applicable year. However, retirement-benefit funding, principal for which no tax credit was claimed, and similar amounts must be classified separately."}],"sources":[{"url":"https://www.law.go.kr/법령/소득세법","title":"National Law Information Center Income Tax Act","type":"source"},{"url":"https://www.law.go.kr/법령/소득세법시행령","title":"National Law Information Center Enforcement Decree of the Income Tax Act","type":"source"},{"url":"https://www.nts.go.kr/nts/main.do","title":"National Tax Service","type":"source"},{"url":"https://www.hometax.go.kr/","title":"National Tax Service Hometax","type":"source"}],"images":[{"id":306,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MzM4OCwicHVyIjoiYmxvYl9pZCJ9fQ==--e8e609ff54235cc6b1d4bc81807551ca1a351152/ai-c0277bb7.webp","is_representative":true,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"노부부와 연금 동전, 세금 기호, 정부 청사와 보호 방패가 연결된 재정 일러스트","caption":"연금 생활자의 소득과 세금 신고, 재정 보호의 관계를 나타낸다.","description":null},"en":{"alt":"Financial illustration of a senior couple, pension coins, tax symbols, government buildings, and shields","caption":"The illustration connects retirement income with tax filing and financial protection.","description":null},"ja":{"alt":"高齢夫婦、年金の硬貨、税金記号、政府庁舎、保護の盾を描いた金融イラスト","caption":"年金生活者の収入と確定申告、資産保護の関係を表している。","description":null},"es":{"alt":"Ilustración financiera con una pareja mayor, monedas de pensión, símbolos fiscales, edificios y escudos","caption":"La ilustración relaciona los ingresos de jubilación con la declaración fiscal y la protección financiera.","description":null},"id":{"alt":"Ilustrasi pasangan lansia, koin pensiun, simbol pajak, gedung pemerintah, dan perisai perlindungan","caption":"Ilustrasi ini mengaitkan pendapatan pensiun dengan pelaporan pajak dan perlindungan keuangan.","description":null},"pt":{"alt":"Ilustração financeira com casal idoso, moedas de aposentadoria, símbolos fiscais, prédios e escudos","caption":"A ilustração relaciona a renda da aposentadoria à declaração fiscal e à proteção financeira.","description":null},"zh-hant":{"alt":"年長夫妻、退休金硬幣、稅務符號、政府建築與防護盾牌相連的財務插畫","caption":"插畫呈現退休收入、綜合所得稅申報與財務保障之間的關係。","description":null}}},{"id":307,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MzM5NCwicHVyIjoiYmxvYl9pZCJ9fQ==--1a1817f9d8b6ca5c36ec18a981f2b53fcaf4f4a8/ai-a58eaa48.webp","is_representative":false,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"연금과 금융·보험·근로 소득, 세금 계산 절차를 살펴보는 노인 일러스트","caption":"연금 생활자가 여러 소득원과 공제 항목을 종합해 세금 신고 기준을 확인하는 과정을 나타낸다.","description":null},"en":{"alt":"Older adult reviewing pension, financial, insurance and work income for tax filing","caption":"The illustration shows a pensioner assessing multiple income sources and deductions for a tax return.","description":null},"ja":{"alt":"年金や金融・保険・給与所得と税金の計算手順を確認する高齢者","caption":"年金生活者が複数の所得と控除を整理し、確定申告の基準を確認する様子を表している。","description":null},"es":{"alt":"Adulto mayor revisando pensión, ingresos, seguros y cálculos para declarar impuestos","caption":"La ilustración muestra a un pensionista evaluando ingresos y deducciones para su declaración fiscal.","description":null},"id":{"alt":"Lansia meninjau pensiun, penghasilan, asuransi, dan perhitungan pajak","caption":"Ilustrasi ini menunjukkan pensiunan yang menilai berbagai sumber penghasilan dan potongan untuk pelaporan pajak.","description":null},"pt":{"alt":"Idoso analisando pensão, rendimentos, seguros e cálculos para declarar impostos","caption":"A ilustração mostra um aposentado avaliando fontes de renda e deduções para a declaração de imposto.","description":null},"zh-hant":{"alt":"長者檢視退休金、金融與保險收入及報稅計算流程","caption":"插圖呈現退休人士彙整多項收入與扣除項目，以確認綜合所得稅申報標準。","description":null}}}],"published_at":"2026-07-27T09:30:24+09:00","updated_at":"2026-07-27T09:30:24+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant"],"url":"https://injoys.com/en/articles/korea-pension-income-tax-filing-guide"}