#Income Tax Act
Related posts · 12 posts
Why Korean Employees Skip the May Tax Return — Wage Income Only, With Two Employers or a Missed Year-End Settlement Outside the Exception
Article 73 of Korea's Income Tax Act says people with wage income only, retirement income only, public pension income only and certain others need not file a final tax base return. The exception does not apply to pay from two or more employers, or where the employer did not withhold through the year-end settlement.
Reverse-Mortgage Interest Deduction in Korea — Up to 2 Million Won a Year Off Pension Income, Home Value 1.2 Billion Won or Less at Sign-Up, Claim Required
Article 51-4 of Korea's Income Tax Act deducts the year's interest cost on reverse-mortgage payments from pension income. Above 2 million won, 2 million is deducted; anything above the pension income amount is treated as nil. The home's standard value must be 1.2 billion won or less at sign-up, and it applies only on a claim.
Social Insurance Premium Deductions in Korea — National Pension, Health and Employment Insurance Premiums Deducted in Full Under Two Provisions
Article 51-3 of Korea's Income Tax Act deducts public pension premiums from global income, and Article 52 deducts the employee's share of health, employment and long-term care insurance premiums from wage income. No cap appears in the text. Paying 1.8 million and 1.5 million won takes 3.3 million off income.
Wage Income Deduction in Korea — 70% of the First 5 Million Won, Then 40, 15, 5 and 2%, a 20 Million Won Cap, 150,000 Won a Day for Daily Workers
Article 47 of Korea's Income Tax Act deducts 70% of total pay up to 5 million won, 3.5 million plus 40% up to 15 million, 7.5 million plus 15% up to 45 million, 12 million plus 5% up to 100 million and 14.75 million plus 2% beyond, capped at 20 million won. On 40 million won the deduction is 11.25 million.
Wage Income Tax Credit in Korea — 55% Up to 1.3 Million Won, Caps of 740,000 to 200,000 by Pay, and the 130,000 Won Standard Credit
Article 59 of Korea's Income Tax Act credits 55% of calculated tax on wages up to 1.3 million won and 30% above, capped at 740,000 won for total pay up to 33 million won, at least 660,000 up to 70 million, at least 500,000 up to 120 million and at least 200,000 beyond. Employees claiming no special deductions get a 130,000 won standard credit.
Child Tax Credit in Korea — 250,000 Won for One Child 13+, 550,000 for Two, 950,000 for Three, Plus 300,000 to 700,000 in the Year of Birth
Article 59-2 of Korea's Income Tax Act credits 250,000 won for one dependent child or grandchild aged 13 or over, 550,000 won for two, and 400,000 won more for each beyond two. In the year of birth or adoption a separate credit of 300,000 won for a first child, 500,000 for a second and 700,000 for a third or later applies.
Non-Taxable Pay Allowances in Korea — Meals, Car and Childcare 200,000 Won a Month, Childbirth Support in Full, Production Overtime 2.4 Million a Year
Article 12 of Korea's Income Tax Act and its Decree exempt meal allowances (where no meals are provided), car allowances and childcare allowances for children 6 or under up to 200,000 won a month each, and childbirth support paid up to twice within 2 years in full. Production workers' overtime is exempt up to 2.4 million won a year if monthly fixed pay is 2.6 million won or less and prior-year pay 37 million or less.
Insurance Premium Tax Credit in Korea — 12% for Protection, 15% for Disability-Dedicated, Up to 1 Million Won Each, Rent Guarantees Included
Article 59-4(1) of Korea's Income Tax Act credits wage earners 12% of protection-type premiums and 15% of protection premiums dedicated to people with disabilities, each up to 1 million won a year. That caps the credits at 120,000 and 150,000 won, and the decree includes rent deposit return guarantee fees for deposits of 300 million won or less.
Donation Tax Credit in Korea — 15%, 30% Above 10 Million Won, and a 10-Year Carry-Forward
Article 59-4(4) of Korea's Income Tax Act credits 15% of donations and 30% of the part above 10 million won. General donations are limited to 30% of income (a separate formula with religious giving), excess carries forward 10 years, and political and hometown love donations earn 100/110 up to 100,000 won.
Korean Capital Gains Tax Calculator — Apportionment and Both Deduction Tables
Sell above KRW 1.2bn as a one-home household and a sixth step appears — apportionment. It is why crossing the line does not mean a big bill.
Splitting Your Accounts — The Law Only Fixes Two Things
Korea's deposit protection cap is ₩100 million, not ₩50 million (amended 29 Jul 2025). And “15.4%” is not a figure in the statute.
Korea's Medical and Education Tax Credits — What That Parenthesis Releases, and What It Doesn't
The medical credit is not one rate but three, fertility treatment is 30%, and the two age tests are measured from opposite ends of the year.