"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 this estimated tax calculation result regarding Samsung Electronics' performance bonuses.

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

The National Tax Service assumed the Samsung Electronics employee earns an annual salary of 100 million won and supports a family of three, consisting of a spouse and one child aged eight or older. If no performance bonus is received, the taxable income after employment income deduction from the total salary of 100 million won is 80.75 million won. Applying the relevant income tax rate of 24% for this bracket, the final tax amount is 12.74 million won.

According to the "2026 Performance Bonus Provisional Agreement" between Samsung Electronics labor and management, both parties agreed to operate a "DS Special Management Performance Bonus" for the next ten years, allocating 10.5% of business performance as the funding source. Based on the number of employees in the Device Solutions (DS) division and the available funds, the estimated performance bonus per person amounts to 600 million won.

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

Of the shares distributed to employees as performance bonuses by Samsung Electronics this time, one-third can be sold immediately. Another one-third can be sold after one year, while the remaining one-third is restricted from being sold for two years.

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