Year-end Tax Adjustment

Are dependents studying abroad included in the basic deduction?

• The basic deduction applies to dependents living together with the resident, so direct descendants living abroad are excluded from the basic deduction.
• However, if it can be confirmed that the resident is actually supporting their direct ancestors or foreign spouse living abroad, they may be eligible for the basic deduction.

As a couple, whose name should the expenses be under to receive more benefits during year-end tax settlements?

• 1. If you expect to reach the income deduction limit, expenses should be incurred in the name of the spouse with the higher total salary.
• 2. However, since the amount used on credit cards or similar must exceed 25% of the total salary, if the expenditure scale does not exceed this, expenditures in the name of the spouse with the lower total salary are advantageous.
• 3. The spouse with earned income must use credit or debit cards.

Is it possible for a vehicle owned by someone else to be eligible for tax exemption on a driving assistance subsidy?

• 1. The self-driving subsidy must be in the name of the employee's vehicle.
• 2. It must be related to the execution of business operations, and the company's payment standards must be established.
• 3. Therefore, vehicles owned by others are not eligible for tax exemption.

Is the spending on a spouse's credit card before marriage eligible for tax deduction?

• 1. The credit card income deduction applies when the annual total income of a resident spouse of the employee is 1 million won or less, and the amount of credit card use is aggregated.
• 2. The amount used by the spouse of a resident who got married in the current year before marriage is not eligible for deduction.

What items are not deductible for medical expenses?

• 1. Beauty and cosmetic purposes
• 2. Health supplements
• 3. Related to dieting
• 4. Skin care, massage, etc.

Can I donate to the local government office when making a hometown love donation?

• It is not possible; your address and the same area are excluded from the donation target.

Can a donation to hometown love be made under the name of a corporation?

• No, only individuals are allowed.