Changes to year-end tax adjustments in S. Korea
- 4 years ago
Time now for our "Life & Info" segment...where we focus on information useful for your everyday life.
With less than two months left of 2019, our reporter Hong Yoo is in the studio to inform us about the year-end tax adjustment in South Korea.
This is a complicated process…
Yes Mark, the year-end tax adjustment is a process where people who have contributed to the economy get their taxes back if they have paid more than their gross income or pay more if they have paid less.
It's a long process to calculate everything for the year-end tax adjustment by oneself.
And so the government is providing a simplified service to help people out.
But again, one needs to gather detailed data on their expenses and do the math themselves.
Plus, they also have to acknowledge the changes in items that benefit from a tax deduction every year.
So procrastinating could see you being hit with a tax bomb.
Yeah, that happened to a friends of mine and it wasn't pretty. What are some of the changes made this year?
This year, people who earn less than 60 thousand U.S. dollars n year and have paid entrance fees to museums and art galleries with credit cards after July 1st get a 30 percent of its price deducted before calculating tax.
If the income tax deduction amount has surpassed its limit of 20 percent of earning, you can get another 860 dollars in income tax exemption.
Also, postpartum care expenses is now included in medical expenses that are eligible for a tax deduction.
Again, people who earn less than 60 thousand U.S. dollars an year can get up to 2-thousand-5-hundred dollars of tax exemption for every child.
The mother has to submit evidential documents with her name and the receipt to her company.
For donations bigger than 8-thousand-600 dollars, 30 percent of the donation gets paid back in a tax rebate.
If you didn't get it back last year because the benefit was limited to donations bigger than 17-thousand dollars, you can get it back this year.
And there is a good news for the injured from May 18th Democratic Movement and people with disabilities due to aftereffect of defoliant as they can get a 90 percent income tax exemption if they are employed in small and mid-sized firms.
Until last year, only women resuming their careers after maternity break, elders, disabled, and people up to 33 years old who were newly employed to SMEs could benefit from it.
Are there other people that can benefit from these tax exemptions?
Yes, production workers get an income tax exemption for their night work.
This year, people working in care services, beauty related services, and accommodation services earning less than 1-thousand-800 dollars a month will be exempt from income tax.
And workers that don't own a home or own a single home get the interest back on mortgage loans paid to financial institutions.
But the house they own has to be worth less than 430-thousand dollars.
Is there a way that people can estimate how much tax they'll have to pay before the end of the year?
Yes,
With less than two months left of 2019, our reporter Hong Yoo is in the studio to inform us about the year-end tax adjustment in South Korea.
This is a complicated process…
Yes Mark, the year-end tax adjustment is a process where people who have contributed to the economy get their taxes back if they have paid more than their gross income or pay more if they have paid less.
It's a long process to calculate everything for the year-end tax adjustment by oneself.
And so the government is providing a simplified service to help people out.
But again, one needs to gather detailed data on their expenses and do the math themselves.
Plus, they also have to acknowledge the changes in items that benefit from a tax deduction every year.
So procrastinating could see you being hit with a tax bomb.
Yeah, that happened to a friends of mine and it wasn't pretty. What are some of the changes made this year?
This year, people who earn less than 60 thousand U.S. dollars n year and have paid entrance fees to museums and art galleries with credit cards after July 1st get a 30 percent of its price deducted before calculating tax.
If the income tax deduction amount has surpassed its limit of 20 percent of earning, you can get another 860 dollars in income tax exemption.
Also, postpartum care expenses is now included in medical expenses that are eligible for a tax deduction.
Again, people who earn less than 60 thousand U.S. dollars an year can get up to 2-thousand-5-hundred dollars of tax exemption for every child.
The mother has to submit evidential documents with her name and the receipt to her company.
For donations bigger than 8-thousand-600 dollars, 30 percent of the donation gets paid back in a tax rebate.
If you didn't get it back last year because the benefit was limited to donations bigger than 17-thousand dollars, you can get it back this year.
And there is a good news for the injured from May 18th Democratic Movement and people with disabilities due to aftereffect of defoliant as they can get a 90 percent income tax exemption if they are employed in small and mid-sized firms.
Until last year, only women resuming their careers after maternity break, elders, disabled, and people up to 33 years old who were newly employed to SMEs could benefit from it.
Are there other people that can benefit from these tax exemptions?
Yes, production workers get an income tax exemption for their night work.
This year, people working in care services, beauty related services, and accommodation services earning less than 1-thousand-800 dollars a month will be exempt from income tax.
And workers that don't own a home or own a single home get the interest back on mortgage loans paid to financial institutions.
But the house they own has to be worth less than 430-thousand dollars.
Is there a way that people can estimate how much tax they'll have to pay before the end of the year?
Yes,