Tax regarding travel, bonus or subsidy offered

Local or overseas travel subsidized with cash or offered to specified employee based on duration of service, rank or performance shall be subject to subsidization of employees and individual income tax must be imposed on such subsidization. Subsidization for travel offered to all employees shall not be included into income of employees.

Bonus and subsidization derived from certain position or job paid irregularly in addition to salary shall be withheld with income tax at the rate of 6% and shall not be integrated into gross withholding of monthly income.

A tax withholder who fails to withhold tax in accordance with the provision of Income Tax Act, in addition to being instructed to pay the tax amount which should be withheld but was not withheld or has short withheld and to submit supplemental tax-withholding certificates within a given time limit, be subject to a fine in an amount equal to the tax amount that should be withheld but was not withheld or was short withheld. If the withholder still does not comply with the instruction to pay the tax amount or to submit supplemental tax-withholding certificates truthfully within the given time limit, he shall be subject to a fine in an amount equal to three times the amount which should be withheld but was not withheld or was short withheld.