Tax & Tax Saving
After-tax Return Comparison by Account
Compare the after-tax results of the same investment made in a taxable account, ISA, pension savings account and IRP.
Enter values and press Compare
Account with the best after-tax result
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The account changes your return
Same ETF, different account, different result
Even for the same S&P 500 ETF, the tax and tax credits differ depending on whether you buy it in a taxable account, ISA, pension savings account or IRP.
Enter your investment plan
Enter the annual contribution, period, expected return and distribution share.
Tax credit conditions
When you enter your gross salary, the pension account tax credit rate (13.2% or 16.5%) is set automatically.
After-tax comparison
Compares the final amounts after each account's taxes and tax credit refunds.
Assumptions by account
- Taxable account · Korea-listed overseas ETF: distributions are taxed at 15.4% each year and then reinvested; trading gains are also taxed at 15.4% as dividend income.
- Taxable account · US-listed ETF: dividends have 15% withholding tax locally; trading gains are taxed at 22% after a KRW 2.5 million deduction when sold all at once at the end of the period.
- ISA: tax deferral during the period; at maturity, net profit above the tax-free limit is taxed separately at 9.9%. Contribution limits are KRW 20 million per year and KRW 100 million in total.
- Pension savings / pension savings + IRP: tax credit up to KRW 6 million per year (KRW 9 million combined), tax deferral during the period, and pension income tax when received as a pension. The tax credit refund is assumed to be reinvested in a taxable account.
Pension accounts are advantageous when received as a pension after age 55, and early withdrawals face a 16.5% other income tax on the tax-credited amount and the gains. An ISA has a mandatory 3-year holding period. The effects of comprehensive taxation of financial income and health insurance premiums are not reflected.
FAQ
Which should I fill first, pension savings or IRP?
The tax credit limits are KRW 6 million for pension savings and KRW 9 million combined with IRP. Pension savings offers greater freedom in investing, while IRP has a 70% limit on risk assets. Many people fill the KRW 6 million of pension savings first and the remaining KRW 3 million with an IRP.
What should I do after my ISA matures?
If you transfer the maturity funds to a pension account within 60 days, you can receive an additional tax credit of 10% of the transferred amount (up to KRW 3 million).
Is a US-listed ETF ever better in a taxable account?
By using the KRW 2.5 million annual deduction to realize gains and losses in portions, you can reduce your tax, and unlike Korea-listed overseas ETFs, trading gains are not added to comprehensive taxation of financial income. This can be advantageous for large investors.
Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.
Tools that work well together
ISA tax-saving calculator
Compare the after-tax amount of the same investment made in an ISA versus a taxable account, reflecting the tax-free limit and the 9.9% separate taxation.
Pension Savings & IRP Tax Credit Calculator
Calculate your year-end tax settlement refund from pension savings and IRP contributions, and how much room is left under the limit.
After-tax comparison of Korea-listed vs US-listed ETFs
Compare the tax on distributions and trading gains, and the after-tax amount, when you buy the same S&P 500 ETF listed in Korea versus listed in the US.
Comprehensive Financial Income Tax & Health Insurance Checker
Check whether your interest and dividends exceed KRW 20 million and whether it affects your eligibility as a health insurance dependent.