Question 1

Are lineal descendants studying abroad included in basic deduction eligibility?

Accepted Answer

Basic deductions apply to dependents actually sharing a household with the resident, so lineal descendants residing overseas are excluded from basic deductions.

However, if a foreign resident's lineal ascendants or foreign spouse live abroad and it can be confirmed that the resident is actually supporting them, basic deductions may apply.

Question 2

For married couples, which spouse should make the expenditure to maximize year-end tax benefits?

Accepted Answer

1. If you expect to reach the income-deduction ceiling, have the higher-salary spouse make the expenditure
2. However, because credit-card spending must exceed 25% of total salary, if your spending is below that threshold it is more advantageous for the lower-salary spouse to spend
3. You must use the credit or check card of a spouse who has wage income

Question 3

Can the self-driving allowance exemption apply to someone else's vehicle?

Accepted Answer

1. The self-driving allowance is only for vehicles in the employee's name
2. The driving must relate to business duties and the company must have payment rules in place
3. Therefore, vehicles owned by others do not qualify for the tax exemption

Question 4

Are spouse's credit-card expenditures before marriage deductible?

Accepted Answer

1. The credit-card deduction aggregates credit-card amounts of the employee's spouse if annual income is KRW 1 million or less
2. For a spouse who married during the current year, amounts spent before marriage are not deductible

Question 5

Which medical expenses are not deductible?

Accepted Answer

1. Cosmetic or plastic surgery purposes
2. Health supplements
3. Diet-related
4. Skincare, massage, etc.

Question 6

Can I donate to my own local government under the Hometown Love Donation program?

Accepted Answer

No. Donations to the same region as the donor's registered address are excluded.

Question 7

Can corporations make Hometown Love donations?

Accepted Answer

No. Only individuals are eligible.

Frequently Asked Questions (FAQ)

Frequently Asked Questions