Year-End Tax Settlement Made Easier... National Tax Service Collects Data, Workers Only Need to 'Modify or Add'

National Tax Service Introduces Bulk Provision Service for Simplified Data
Also Provides 'Preview' to Check Expected Results

[Sejong=Asia Economy Reporter Kim Hyunjung] The 'Year-end Tax Settlement Simplified Data Bulk Provision Service,' where the National Tax Service (NTS) provides the year-end tax settlement simplified data on behalf of employees instead of employees submitting it to their companies, will be introduced this year. Employees only need to submit proof documents to their companies if there are additional or corrected items.

The NTS announced on the 29th that it has launched the Year-end Tax Settlement Simplified Data Bulk Provision Service ahead of schedule. Until now, employees had to directly obtain their individual simplified data from Hometax or tax offices and submit it to their companies during year-end tax settlement. Going forward, with the employee's consent, the NTS can provide the simplified data directly to the company. When employees apply for the bulk provision service and agree to provide related information, the NTS provides the simplified data to the company, and the year-end tax settlement proceeds accordingly.

Employees only need to submit proof documents to the company if there are additional or corrected items in the simplified data. From the employee's perspective, once they apply for the bulk provision service and complete the confirmation and consent procedures, the year-end tax settlement is effectively completed.

Employees wishing to use the service must submit the bulk provision application form to their company by January 14 of next year, and the company must register the list of applicants with the NTS.

Afterward, applicants must access the NTS Hometax (mobile Sontax is also available) from December 1 of this year to January 19 of next year to check the application details and consent to the provision of data. At this time, sensitive information that they do not want to notify the company about can be deleted in advance. Simplified data for dependents will also be provided only if prior consent for data provision is given by January 19 of next year.

Once the NTS provides the simplified data of employees who have passed the verification process to the company, the company downloads the simplified data, proceeds with the year-end tax settlement, and informs the employees of the final results. Employees who do not wish to apply for the service can continue to download the simplified data directly from Hometax and submit it to their companies as before.

The Year-end Tax Settlement Preview Service, which allows users to check the expected results of the year-end tax settlement, was also launched on the same day. By using the preview service, users can check their credit card usage from January to September of this year and pre-calculate the income deduction amount that varies according to expenditures after October. If the deduction amounts in each item, pre-filled with last year's year-end tax settlement amounts, are modified, the expected tax amount for this year can also be calculated.

Those whose credit card usage amount this year has increased by more than 5% compared to last year can receive additional income deduction benefits. The current credit card income deduction applies a deduction rate of 15-40% to credit card usage exceeding 25% of total salary. This year, an additional 10% income deduction is applied to the amount that has increased by more than 5% compared to last year, along with an additional limit of 1 million KRW (applied separately to traditional market and public transportation usage). If dependents have credit card usage amounts, the deduction amount is calculated based on the total sum, and even if the employment period is less than one year, the deduction amount is calculated based on the annual usage amount. Even if credit card usage has increased by more than 5% compared to last year, if the usage amount does not exceed 25% of total salary, no deduction benefit is given. Other individual calculations can be done using the Year-end Tax Settlement Preview Service.