Non-taxable and Year End Adjustment changes (YEA)

Aboard salary income non-taxable

Aboard salary income for Sailors of foreign ships and deep-sea fishing ships and overseas construction workers non-taxable limitation is increased from KRW 3,000,000 to KRW 5,000,000. 

Credit card usage (Income deduction)

Added for 2024 YEA. If total usage of 2024 credit card usage was more than 2023 usage. 10% of amount exceeding 105% of 2023 usage (2024 total – 2023 total*105%) will be deducted from taxable income up to KRW 1,000,000.

Principal interest payment of long-term mortgage loan (Income deduction)

Principal interest payment of long-term mortgage loan limitation is updated as below. 

House-purchasing savings (Income deduction)

Limitation is increased from KRW 2,400,000 to KRW 3,000,000. 

Medical expense (Tax credit)

• Less than 6-year-old medical expenses are added to no limitation expense item.
• Postpartum care center expense up to KRW 2,000,000 was only applicable to employees whose annual salary is less than KRW 70,000,000. Now the income condition is cancelled. 

Donation (Tax credit)

General donation including religious donation and non-religious donation addition deduction level is added.

Child exemption (Tax credit)

2nd child exemption is increased from KRW 150,000 to KRW 200,000.

Child condition, except child grandchildren is added.

Monthly rent (Tax credit)

Annual salary condition is increased from KRW 70,000,000 to KRW 80,000,000.

Annual rent fee limitation is creased from KRW 7,500,000 to KRW 10,000,000.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.

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South Korea – Non-taxable and Year End Adjustment Changes

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