At year-end settlement in Korea, donations depend first on “where” rather than “how much.” Article 59-4(4) of the Income Tax Act credits 15% of donations (30% of the part above 10 million won), but religious and other bodies have different limits, and political donations and hometown love donations are counted under separate articles. We read the articles and worked through amounts.
1. Ordinary donations earn 15%, and 30% on the part above 10 million won. Giving 1 million won earns a 150,000 won credit; 15 million won earns 1.5 million + 1.5 million = 3 million won (our arithmetic).
2. There are limits. General donations count up to 30% of income; if you gave to a religious body, the limit is 10% of income plus the smaller of 20% of income and non-religious donations. The excess carries forward for 10 years.
3. Political and hometown love donations earn 100/110 up to 100,000 won. Political donations then earn 15% (25% above 30 million won); hometown love donations 40% up to 200,000 won and 15% above.
Who and what — article 59-4(4)
The credit is for residents, excluding those with only business income (except as set by decree). Donations made by a spouse or dependants who are basic-deduction dependants may be included, with no age limit, but not donations by people claimed as dependants by another resident.
| Donation | Credit rate | Limit |
|---|---|---|
| Special donations (art. 34(2)1) | 15% · 30% above 10 million won | Credited before general donations (limit in art. 34(2), not reproduced here) |
| General donations — no religious giving | 15% · 30% above 10 million won | Income × 30% |
| General donations — with religious giving | 15% · 30% above 10 million won | Income × 10% + the smaller of [income × 20%] and non-religious donations |
“Income” here is comprehensive income (excluding separately taxed interest and dividends) minus special donations (para. 4 item 2(a)). Where both kinds exist, special donations are credited first, and the 15% and 30% rates apply to the combined total. Paragraph 8, which added 10% on the part above 30 million won for donations made in 2024 only, was a one-year measure.
By amount — ordinary donations
| Donated in a year | Working | Tax credit |
|---|---|---|
| 300,000 won | 300,000 × 15% | 45,000 won |
| 1 million won | 1 million × 15% | 150,000 won |
| 10 million won | 10 million × 15% | 1.5 million won |
| 15 million won | 10 million × 15% + 5 million × 30% | 3 million won |
The arithmetic is ours and assumes the donations are within the limit. For example, with 30 million won of income and no religious giving, the general-donation limit is 9 million won (30%), so of a 10 million won gift, 1 million won exceeds it.
What you could not use — article 61(2), 10-year carry-forward
If total credits exceed that year’s calculated comprehensive income tax, the excess is treated as nil. But where it includes the donation credit, or general donations exceeded the limit, they carry forward to tax periods ending within 10 years from the next period and are credited at the same rates.
Two counted separately — political and hometown love donations
| Donation | Up to 100,000 won | Above |
|---|---|---|
| Political funds to parties, supporter groups or election commissions (RSTA art. 76) | Donation × 100/110 | 15% of the excess (25% above 30 million won) |
| Hometown love donations (RSTA art. 58) | Donation × 100/110 | 40% up to 200,000 won, then 15% up to 20 million won |
A 100,000 won political donation earns 90,909 won, and 500,000 won earns 90,909 + 60,000 = 150,909 won (our arithmetic). Hometown love donations by amount are in hometown love donation tax credit. Amounts credited under these two articles cannot also be claimed under the Income Tax Act’s donation rules.
Checklist
- ☐ Check on the receipt whether the recipient is special or general (including religious)
- ☐ Include spouse and dependants’ donations — no age limit
- ☐ Check the 30% of income limit (separate formula with religious giving)
- ☐ Carry forward unused amounts for 10 years — enter them at next year’s settlement
- ☐ Political and hometown love donations earn 100/110 up to 100,000 won
Questions that remain
For a dual-income couple, who claims?
Paragraph 4 includes donations by basic-deduction dependants and excludes those claimed by another resident. If a spouse is not claimed as a dependant, the structure reads as each spouse claiming their own donations.
What if all my donations are religious?
In the item 2(a) formula, if non-religious donations are zero, the second term is zero and the limit is 10% of income (our arithmetic).
Sources
- Income Tax Act [in force 1 Jul 2026] [Act No. 21221] — original text (checked 30 September 2026). Source for article 59-4(4) (15%, 30%, limits, dependants’ donations) and (8) (2024-only measure), and article 61(2) (10-year carry-forward).
- Restriction of Special Taxation Act [in force 18 Sep 2026] [Act No. 21467] — original text. Source for article 58 (hometown love donations) and article 76 (political funds: 100/110, 15%, 25%).
- Our own working. Credits by amount and the limit example are our arithmetic.
Where to check further
- Donation receipts — Hometax’s simplified year-end settlement service.
- Commonly missed deductions — missed year-end deductions.
Written on 30 September 2026. Articles are from the National Law Information Center; the tables and arithmetic are ours.
