| (1) | A resident with global income shall be eligible for the deduction of the amount equivalent to 12/100 (or 15/100, where the amount of a resident's global income aggregated at the time of calculating the tax base of global income for the relevant taxable period does not exceed 45 million won (or where the amount of gross pay does not exceed 55 million won, if a resident has only wage and salary income)) of the amount computed by excluding the following amounts from the amount paid into his/her pension accounts (hereinafter referred to as “payments into pension accounts”) from the calculated tax amount on global income for the relevant taxable period: Provided, That the amount exceeding six million won per year, out of the amount paid into pension savings accounts, among pension accounts, shall be deemed nil; the amount exceeding nine million won per year, out of the sum of the amount not exceeding six million won, out of the amount paid into pension savings accounts, and the amount paid into the retirement pension account, shall be deemed nil;: <Amended by Act No. 12852, Dec. 23, 2014; Act No. 13282, May 13, 2015; Act No. 14389, Dec. 20, 2016; Dec. 31, 2022> |
| 1. | Tax-deferred income, such as retirement income from which income tax has not been withheld under Article 146 (2); |
| 2. | The amount paid in as a result of the transfer of a contract from a pension account to another pension account. |
| (2) | The deduction under paragraph (1) shall be referred to as “tax credit for pension accounts.” |
| (3) | If the contract period of an individual savings account as defined in Article 91-18 of the Act on Restriction on Special Cases concerning Taxation expires and all or some of the balance of such account is transferred to a pension account in a manner prescribed by Presidential Decree, the transferred amount (hereafter referred to as "transferred amount" in this Article) shall be included in the payments into pension accounts for the taxable period on which the date of such transfer falls. <Newly Inserted on Dec. 31, 2019> |
| (4) | If there is any transferred amount, for the purpose of applying paragraph (1), notwithstanding the proviso, with the exception of the subparagraphs, of the same paragraph, the amount exceeding the sum of the lesser of 10/100 of the transferred amount or three million won (if the amount is paid over the previous taxable period and the relevant taxable period, the amount shall be three million won less the amount applied to the previous taxable period) and the amount paid into pension accounts under the proviso, with the exception of the subparagraphs, of paragraph (1), shall be deemed nil. <Newly Inserted on Dec. 31, 2019> |
| (5) | Matters necessary for the calculation method, procedures for application for tax credit for pension accounts, etc. under paragraphs (1) through (4) shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2019> |
[This Article Newly Inserted by Act No. 12169, Jan. 1, 2014]