"Samsung Electronics Employee with 100 Million Won Salary Receiving 600 Million Won Bonus... Estimated Tax Revealed"

National Tax Service Releases Simulation Results
24 Million Won Withheld by Company
Employee Must Pay the Remainder Directly

A simulation has shown that a Samsung Electronics employee with an annual salary of 100 million won would have to pay 247.19 million won in taxes if they receive a performance bonus of 600 million won.

On May 21, the National Tax Service released an estimated calculation of the tax amount for Samsung Electronics’ performance bonuses.

Employees are busy moving around at the Samsung Electronics headquarters in Seocho-gu, Seoul. Photo by Dongjoo Yoon

The National Tax Service assumed a Samsung Electronics employee earning an annual salary of 100 million won, with a three-person household consisting of a spouse and one child aged eight or older. If no performance bonus is received, the taxable income is 80.75 million won after deducting employment income deductions from the total salary of 100 million won. Applying the 24% employment income tax rate for this income bracket, the determined tax amount is 12.74 million won.

According to the "2026 Performance Bonus Provisional Agreement" between Samsung Electronics labor and management, the company will operate the "DS Special Management Performance Bonus" for the next ten years, allocating 10.5% of business performance as the bonus pool. Based on the number of DS Division employees and available resources, the performance bonus per employee is calculated at 600 million won.

Based on this, if a Samsung Electronics employee with an annual salary of 100 million won receives a 600 million won performance bonus, the total salary becomes 700 million won. The taxable income, after deducting employment income deductions, is 675.5 million won, and a tax rate of 42% is applied, resulting in a tax amount of 247.19 million won. Of this, the company is expected to withhold 240 million won at the source, while the employee would need to pay approximately 7.19 million won directly. However, the actual tax amount may vary depending on individual circumstances.

Of the performance bonus paid in the form of stock by Samsung Electronics, one-third can be sold immediately. Another one-third can be sold after one year, and the remaining one-third is restricted from sale for two years.

This content was produced with the assistance of AI translation services.