National Tax Service to Disburse 2023 Second Half and Settlement Earned Income and Child Tax Credits in Bulk

The government’s Earned Income Tax Credit and Child Tax Credit program, aimed at stabilizing the living conditions of worker households facing economic difficulties, has seen an increase in both the number of eligible households and the total amount compared to the previous year.

The National Tax Service announced that it will make a lump-sum payment of the 2023 second half and settlement period tax credits on the 27th.

The 2023 second half and settlement period Earned Income Tax Credit and Child Tax Credit to be paid this time amounts to 1.97 million households and 1.8445 trillion KRW. Due to the increase in the maximum Child Tax Credit payment from 800,000 KRW to 1,000,000 KRW per dependent child, this represents an increase of 40,000 households and 21.5 billion KRW compared to last year’s 1.93 million households and 1.823 trillion KRW.

The total annual semi-annual Earned Income Tax Credit and Child Tax Credit for 2023 is 2.07 million households and 2.3611 trillion KRW (including 516.6 billion KRW paid in the first half), which is an increase of 10,000 households and 70.2 billion KRW compared to last year’s 2.06 million households and 2.2909 trillion KRW.

For households that applied for the semi-annual Earned Income Tax Credit but have income sources other than earned income, their applications will be considered as regular applications submitted in May and will be reviewed and paid by the end of August.

However, among the households considered as regular applicants, those without an obligation to file a comprehensive income tax return or those eligible for refund filing guidance will undergo early review through proactive administration, and 100,000 households and 119.9 billion KRW will be included and paid in the second half and settlement period.

The National Tax Service has notified all applicants of the review results via mail or mobile. The tax credit status can also be checked through the Tax Credit Consultation Center, the automated response system, and Hometax (PC and mobile).