What are the conditions and limits for income tax deductions related to credit card usage in South Korea?

Answered on : 2024-01-24

Sources

신용카드 등 사용액 소득공제 요건/대상

koreatax.org

신용카드소득공제

bccard.com

소득공제 3.신용카드 등 사용금액 소득공제

help.jobis.co

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Answer

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1. To be eligible for income tax deductions in South Korea related to credit card usage, the annual credit card expenses must exceed 25% of the total annual income [2] [6].

2. The deduction rates vary based on the type of expense:

- Credit card: 15%

- Debit/Check card: 30%

- Traditional markets: 40%

- Public transportation: 40-80%

- Cultural expenses: 30% [2].

3. Only certain individuals qualify for the deductions, including spouses with an income below a certain threshold and children or adopted children with an income below a specified limit [1].

4. It's crucial to understand that not all credit card expenses are eligible for deduction [5].

5. For detailed calculations and guidelines, individuals can refer to official sources like the Korea Tax Service [1] [2] [5].