Revision of 'Quick Tax Table' (monthly withholding tax table) to reduce withholding taxes

The government revised ‘Quick Tax Table’ to cut down monthly payroll withholding taxes by approximately 10% to encourage consumer spending by increasing the amount of disposable income of employees.

The revised 'Quick Tax Table' is applied to the salaries and wages paid from September 2012, and may also be applicable to the withholding taxes already withheld from January through August 2012.

The over-withheld tax amounts based on the revised ‘Quick Tax Table’ compared to the previous ‘Quick Tax Table’ during the period of January through August 2012 may be deducted from the taxes withheld (or to be withheld) starting September 2012 and onward.

If an employer withheld payroll taxes in September according to the previous 'Quick Tax Table' and it is before payment due date of October 10, 2012, the taxes withheld may be refunded to employees up to withheld tax amounts in September 2012 and remainder of the over-withheld tax amounts may be deducted from the withholding taxes after September 2012.

Employers should first refund, when necessary, the payroll withholding taxes to the employees before payment to the tax office and then offset the taxes refunded against the taxes payable to the tax office in the future.