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The Korean government is expected to reduce the income tax burden of office workers by up to 800,000 won from next year by changing the income tax system.
According to the tax reform plan announced by the Ministry of Economy and Finance on the 21st, those with an annual salary of 30 million won will receive a benefit of paying 80,000 won less tax, those with an annual salary of 70 million won will pay 180,000 won less tax, and those with an annual salary of 70 to 78 million won will pay 540,000 won less.
However, those with an annual salary exceeding 120 million won will receive a reduced tax benefit of 240,000 won, which is less than other benefits. This is to prevent more benefits being given to high-income earners.
In addition to the tax reform, the government has also introduced various policies to provide practical benefits to the ordinary people.
To increase the incentives for low-income workers to work, the property requirements for work incentives were relaxed and more workers could receive up to a 10% increase in payments.
Tax support for education and child support will also be expanded. The university admission fee and entrance exam fee will be added to the subject of tax credit for education expenses, and the value-added tax on diapers and formula for infants will be permanently exempted.
In order to expand support for multi-child households, if a household raising three or more children under the age of 18 purchases a car, the special consumption tax is exempted up to 3 million won.
In addition, incentives will be strengthened to abolish the limit on the period of special taxation of a flat tax rate for foreign workers so that excellent foreign workers can come into Korea.
The period of income tax reduction will be extended from 5 years to 10 years to support technology development using overseas experts.
Reporter Jieun Lee
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