The declaration and payment of the composite income tax (Type T)

 

Let's take a look at the declaration and payment of the composite income tax focusing on type T.

Family Month, May. May, busy with the Family Month event, is the month of the declaration/payment of composite income tax. The composite income tax is abbreviated as 'Jongsose' in Korea. Generally, the declaration and payment period for the composite income tax is from May 1st to May 31st at 24:00. By the due date, you must complete the tax declaration as well as payment of the composite income tax. Business owners, self-employed people, and freelancers are subject to the composite income tax declaration. Mail or kakaoTalk messenger notice will be sent to the declaration person.

Generally, the deadline for the declaration and payment is May 31, but there are cases where the deadline for the declaration and payment is extended. The deadline for the declaration and payment is June 30 for the person who is confirmed to be faithful. For the taxpayers eligible for the tax administration assistance, the deadline for the declaration and payment is August 31st. Due to the contraction of economic activity due to the COVID-19, the deadline for the declaration and payment is extended for those who are eligible for tax support, such as small business owners.

Let's take a look at the type T of the composite income tax declaration. There are several types of composite income, but broadly classified into Pension income, Earned income, Financial income, and Other income. Pension income is the total pension income from public and private pensions. Earned income is earned income from two or more workplaces. Financial income means interest income and dividend income. Other income is temporary income from religious people, YouTube AdSense, Naver Adpost, and special lectures. Even if it is classified as other income, if it exceeds a certain amount, it must be declared as business income.

If pension income, earned income, financial income, and other income meet the taxable threshold, they are subject to composite income tax payment. In some cases, it is taxed as the Type T income where there is double(multiple) income. Even if the earned income earned at a workplace is added to the pension income, it is equivalent to the type T income. Recently, the number of elderly people who are re-employed after retirement has increased, and this case is increasing.

Let's take a brief look at the type T of the declaration process. For more information, please refer to the Hometax website help. The first step is to enter the basics. This is the step to look up the taxpayer number and enter taxpayer information. Here, if you are not a business operator, you must choose the duty of book-keeping as a non-business operator. The second step is an income statement. This is the stage of bringing in earned income, pension income, and other income. The third step is a statement of the composite income amount, deficit and carryover deficit deduction. This is the stage to check the amount of composite income after deducting deficit and carryover deficit.

The fourth step is a tax deduction statement. This is the step of importing the year-end tax settlement data and inputting the additional income deduction amount. The fifth step is a statement of donations and adjustments. This is the step to enter and confirm donation details. Here, donation history must be available. The sixth step is the composite income calculation tax statement. This step is for financial income earners to check the financial income statement. If you are not a financial income earner, proceed directly to the next step.

The seventh step is the statement about the tax reduction·deduction reserve. This is the step to check the tax reduction·deduction reserve statement and input the additional tax deduction amount. The eighth stage is the additional statement. This is the stage to enter penalty tax due to non-declaring, under-declaring, or delayed payment. Applicable only to persons subject to penalty tax. The ninth step is the statement of prepaid tax. This is the stage to check the details of the amount of tax already paid and to confirm the amount of withholding tax and the amount of tax collected by the tax association.

The tenth step is the tax calculation step. This is the step to check the amount of tax to be paid within the filing deadline. The eleventh step is to file a declaration form. After checking the amount of tax to be paid, if there are no abnormalities, this is the step to submit a declaration form. If the amount of tax to be paid is greater than zero, you must pay composite income tax after filing a declaration form. If the amount of tax to be paid is less than 0, that is, if the numeric code is negative, enter a refund account and receive a refund.

Let’s take a look at the composite income tax payment. Payment can be made immediately after submitting the declaration form, but in many cases, payment is made after confirming the amount to be paid and later when there is room for payment. The composite income tax can be paid using Hometax electronic payments systems of the National Tax Service. Home tax electronic payments can be selected from account transfers, credit cards or simple payments.

If you pay by account transfers, there is no fee. First, select the name of the financial company (payment bank). Enter the payment account number and passwords. Enter your emergency contact information to receive a payment result notification message. During the payment step, you will be asked to enter your certificate password to verify your identity. After entering the certificate password, payment is complete.

Fees apply if you pay by credit card. First, select a credit card company and check whether points are used. Select installment or lump sum payment and enter the card number and expiration date. Enter your emergency contact information to receive a notification message. At the payment stage, you will be asked to enter your certificate password to verify your identity. After entering the certificate password, payment is complete.

Simple payment is a simple payment method that does not require you to enter the card number and expiration date of your credit card. This is possible only if you have signed up for the easy payment service in advance. For easy payment, first select an easy payment company(card company). Enter emergency contact information and select whether to pay in installments or lump sum payment. Payment will be completed when the payment procedure is proceeded. It is helpful to know in advance the concepts of declaring and paying composite income tax.

You must know the deadline of declaration and payment about the composite income tax, and the types of composite income tax declaration. It is helpful to know in advance the steps to fill out a composite income tax declaration form with Hometax, and how to electronically pay composite income tax with Hometax and the types of composite income tax declaration. I wish you a successful completion of your composite income tax declaration and payment.