Gym and Swimming Pool Fees Now Eligible for Tax Deduction... But Not for Everyone, Everywhere

Facility Usage Fees at Around 1,000 Gyms and Swimming Pools Nationwide
"Expected to Boost Vitality in the Sports Industry"

Photo to aid understanding of the article. Asia Economy DB.

Starting next month, a portion of gym and swimming pool facility fees can be claimed as a tax deduction.

On June 30, the Ministry of Culture, Sports and Tourism announced, in cooperation with the Korea Culture Information Service Agency, that "from July 1, the scope of the cultural expense tax deduction will be expanded beyond the fields of culture and the arts to include gyms and swimming pools."

Previously, the cultural expense tax deduction system was mainly applied to cultural activities such as book purchases, performance tickets, museum admission fees, and newspaper subscriptions. However, following last year's revision of the tax law by the government, it will now also apply to gyms and swimming pools. As a result, wage earners with a total annual salary of 70 million won or less can claim 30% of their facility usage fees as a tax deduction, up to a maximum of 3 million won.

This does not apply everywhere. The tax deduction will be available for facility fees at approximately 1,000 gyms (fitness centers) and swimming pools nationwide. Since January, the Ministry of Culture, Sports and Tourism and the Korea Culture Information Service Agency have been recruiting businesses wishing to participate in the program. By the end of June, around 1,000 gyms and swimming pools across the country had registered for the program.

Participating institutions include private sports facilities and public sports facilities equipped with swimming pools or gyms, which are registered under the Sports Facilities Act as swimming pool businesses, fitness center businesses, or comprehensive sports facility businesses. The Ministry of Culture, Sports and Tourism plans to continue promoting the program to further expand participation. The current list of eligible facilities can be checked, and new facilities can be registered, on the "Cultural Expense Tax Deduction" website.

The criteria for facility usage fees eligible for the deduction vary slightly depending on the type of service. For admission fees (daily or monthly), the entire amount is recognized as a facility usage fee. However, in cases where facility usage fees and other costs cannot be separated, such as for personal training at gyms or swimming lessons, only half of the total amount is recognized as a facility usage fee. In addition, purchases of sports equipment or beverages within the facility are excluded from the deductible facility usage fees.

The Ministry of Culture, Sports and Tourism stated, "We expect that this tax deduction system will further promote physical activity, thereby improving public health and revitalizing the sports industry."