Last year, the number of earned income earning billions of dollars in Korea exceeded 850,000. It is 4.4% of the total paycheck.
According to the ‘2020 National Tax Statistical Yearbook’ published by the National Tax Service on the 29th, the number of workers who reported year-end settlement of earned income last year was 19.17 million, an increase of 3.1% from the previous year. Among them, the number of ‘100 million annual salaries’ with a total salary equivalent to’pre-tax annual salary’ exceeding 100 million won was 852,000, an increase of 50,000 from the previous year. The proportion of the billionaires also increased by 0.1 percentage points from the previous year to 4.4%.
An official from the National Tax Service explained, “Because non-taxable income such as food expenses is omitted from the gross salary, the actual salary of billions of dollars can be regarded as more.”
Last year, the average salary per person for year-end settlement workers was 37,000 won. It increased 2.7% from the previous year (36.47 million won) For 7.75 million people (36.8%), the determined tax was ‘0 won’. This means that the earned income tax was zero won due to various deductions. It fell 2.1 percentage points from 2018 (38.9%). The annual salary of 986 people exceeded 100 million won, but the earned income tax was 0 won.
On the other hand, the average gross income per capita of daily wage earners (7.46,000 people) was only 807 million won. It was 20,000 won less than a year ago.
159,000 people were subject to comprehensive financial income taxation, whose financial income exceeded 20 million won last year. Compared to the previous year (129,000), it increased 23.6%. High income earners with financial income of over 500 million won also increased by 5.6% to 4810. Their average comprehensive income was 2.9 billion won, up 4.4% from a year ago.
Sejong = Reporter Kim Do-yeon [email protected]