Everyone who earned money in 2018 from work in Korea must file taxes here, regardless of nationality, length of stay in the country, or income. It's worth learning about the deductions for which you may be eligible. Joseph Kim explains.



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The rates of tax deductions for monthly rent have increased.

The deduction rate is extended from 10 percent to 12 percent for those who earned no more than 55 million won for the year of 2018.
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Benefits for small and medium sized enterprise employees have increased.

The reduction rate of their income tax increases from 70 percent up to 90 percent.

The beneficiaries’ cut-off age has also increased from age 29 to age 34.
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The rate of tax deductions for the credit card purchase of books, play and concert tickets also increased.

The deduction rate is 30 percent for the purchases made after July 2018 for those who earn 70 million won or less.
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Meanwhile, some tax deduction items have been scrapped.

Workers who have kids under the age of six had gotten an additional 150,000 won tax deduction, but the deduction benefit was removed beginning this year-

because a 100,000 won monthly allowance has been provided to parents who have kids under the age of six since September 2018.
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Then, what could a worker do to pay less tax?

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Income tax deduction criteria: credit card expenditures exceed 25%, medical expenses exceed 3% of yearly income

Income tax deductions can be made when credit card expenditures exceed 25 percent and medical expenses exceed 3 percent of one's gross income for the year of 2018.

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Couples earning two paychecks are advised to check their earnings and expenditures and pay by one whose income and expenditures meet the conditions.

The National Tax Service's website - hometax.go.kr - can automatically calculate what a taxpayer owes.

Then, through these calculations, a taxpayer can try to find better options in order to reduce their taxes.

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Deductions for people with disabilities, cancer, Alzheimer’s

Lastly, taxpayers shouldn't miss the deduction for people with disabilities.

Cancer, Alzheimer and stroke patients can get a deduction the same as the disabled.

INTERVIEW
Kim Yu-cheol / Jeju tax office
The definition of “disabled” is different in the Income Tax Law. The National Tax Service acknowledges people with serious diseases, like cancer, as disabled for tax deductions, if they can provide hospital proof of their illnesses.
<인터뷰 : 김유철/제주세무서 법인납세과>
"일반적으로 장애인은 시·군청에 등록돼 있는 장애인을 말하는데요. 국세청에서는 중증 환자인 경우에 즉 암 환자 같은 경우 별도로 병원에서 장애인 증명서를 발급받으면 장애인으로서 인정을 해서…."

[Reporter] Joseph Kim
[Camera] Park Byeong-june
[Graphics] Jeong Jae-gyeong

Taxpayers can call to the corporate taxation division of the Jeju Taxation Office for help and more information.

Joseph Kim, KCTV