Tax & Tax Saving
Pension Savings & IRP Tax Credit Calculator
Calculate your year-end tax settlement refund and the remaining room under the limit based on pension savings and IRP contributions.
Enter values and press Calculate refund
Expected tax credit (refund) this year
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Applicable credit rate
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Contributions eligible for credit
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Remaining room under the limit
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Top year-end tax-saving move
Pension accounts give you tax back the moment you contribute
Money put into pension savings and IRP qualifies for a tax credit on up to KRW 9 million per year. If your total salary is KRW 55 million or less, 16.5% of your contribution comes back in the year-end tax settlement; above that, 13.2%.
Enter income
Employees enter their total salary; those with business or other income enter their comprehensive income amount. This determines your credit rate.
Enter contributions
Enter what you have contributed or will contribute this year to pension savings and IRP, plus any ISA maturity transfer.
Check remaining room
Check the remaining room under the limit and the monthly amount to split it into, and finish contributing before the last business day of December.
How it is calculated
- Eligible contributions = min(pension savings, KRW 6 million) + IRP, but the total is capped at KRW 9 million. You can fill the full KRW 9 million with IRP alone.
- Credit rate (including local income tax): 16.5% for total salary of KRW 55 million or less (comprehensive income of KRW 45 million or less), 13.2% above that.
- If you move ISA maturity funds into a pension account, 10% of the transferred amount (up to KRW 3 million) is added to the eligible base.
- A tax credit cannot exceed that year's determined tax. If your tax is small, you get back less than the calculation shows.
Year-end checklist
- Contributions count if deposited by Dec 31 of that year. Check bank and brokerage cutoff times in advance near year-end.
- The principal that received a tax credit and its investment gains must be received as a pension after age 55 to qualify for the low tax rate (3.3–5.5%). If you withdraw it early other than as a pension, other income tax of 16.5% applies.
- Retirement pension contributions your employer makes (employer contributions to a DC plan) are not your own payments, so they are not eligible for the credit.
FAQ
Can I put the full KRW 9 million into pension savings alone?
Only up to KRW 6 million of pension savings is eligible for the credit. To get the full KRW 9 million credit, you must put at least the remaining KRW 3 million into an IRP. Filling KRW 9 million with an IRP alone is possible.
If my salary is slightly above KRW 55 million, does the credit rate drop sharply?
The credit rate drops from 16.5% to 13.2%, a decrease of 3.3%p. If you contributed the full KRW 9 million, the maximum refund falls from KRW 1,485,000 to KRW 1,188,000. The threshold is based on total salary after excluding non-taxable allowances, not your annual salary.
If we are a dual-income couple, are our pension accounts combined?
No. The pension account tax credit applies only to amounts you paid yourself into accounts in your own name. Each spouse must fill the limit with their own account.
Can I get a refund even if I pay almost no tax?
A tax credit is subtracted from determined tax, so if you owe no tax there is nothing to get back. In that case, contributions that did not receive a credit are excluded from taxation when you later receive them as a pension.
Is the credit the same if I put it all in at once in December?
Yes. The credit is based on the total contributed over the year, so putting it in at once in December gives the same result. However, transfers pile up at year-end, so it is safer to deposit a few days before the deadline.
Can I get the extra credit for ISA maturity funds every year?
It applies in the year you move ISA maturity funds into a pension account within 60 days of maturity. 10% of the transferred amount, up to KRW 3 million, is added to the eligible base on top of the existing KRW 9 million limit.
Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.
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