Career Break Returnees Also Eligible for "SME Employee Tax Reduction"... "Don't Miss Year-End Tax Deductions"

Basic Deductions Available for Spouses Who Received Parental Leave Benefits
Undeducted Donations Can Be Carried Forward and Deducted for 10 Years
Residential Officetels Also Eligible for Monthly Rent and Housing Loan Deductions

Individuals who resigned due to marriage, childbirth, or childcare and then re-entered the workforce at a small or medium-sized enterprise (SME) are eligible for income tax reductions for SME employees. Spouses who received parental leave benefits and children who received work-study scholarships can also claim basic deductions during year-end tax settlement. Additionally, donations that were not previously deducted can be carried forward for up to 10 years to receive deductions.

On January 20, the National Tax Service announced a list of "easily overlooked deduction and reduction benefits" to help employees make the most of all available deduction items during year-end tax settlement.

First, young employees (aged 19 to 34) who are employed at SMEs can receive a 90% income tax reduction for five years from their employment date. Employees aged 60 or older, those with disabilities, or those who have experienced a career break can receive a 70% income tax reduction for three years from their employment date. Notably, for income earned from March 14 of last year onward, both men and women who have experienced a career break are eligible for this income tax reduction. Employees who have worked continuously for at least one year and resigned due to marriage, pregnancy, childbirth, childcare, children's education, or family care, and who are re-employed after a period of at least two years but less than 15 years from their resignation date, are eligible for income tax reductions.

Spouses who received parental leave benefits and children who received work-study scholarships can receive basic deductions, as well as deductions for credit card spending, medical expenses, educational expenses, insurance premiums, and donations, regardless of the amount received, provided they have no other income. However, children over the age of 20 are not eligible for the basic deduction or insurance premium deduction.

Special and general donations made before 2024 that were not previously deducted can be carried forward for up to 10 years to receive deductions. If donation data is not available through the simplified service, employees can obtain a donation receipt directly from the donation organization and submit it to their company for the deduction.

Employees who pay monthly rent for residential officetels or gosiwons, as well as apartments, are eligible for monthly rent tax credits. Those who have taken out a lease loan from a financial institution and are repaying it can also claim deductions for principal and interest payments on housing lease loans.

For questions regarding deduction requirements and important considerations related to year-end tax settlement, individuals can refer to the comprehensive year-end tax settlement guide on the National Tax Service website or contact the National Tax Consultation Center for assistance.