| (1) | If a resident with wage and salary income (excluding a daily employed worker; hereafter the same shall apply in this Article) pays, during the relevant taxable period, insurance premiums in any of the following categories, payable in accordance with an insurance contract for an insurance policy under which the amount refundable at maturity does not exceed paid-in premiums, the amount equivalent to 12/100 (or 15/100 in cases falling under subparagraph 1) of the amount paid shall be deducted from the calculated tax amount on global income during the relevant taxable period: Provided, That, if the sum of the insurance premiums in either of the following categories exceeds one million won per year, such excess shall be deemed nil: <Amended by Act No. 13282, May 13, 2015> |
| 1. | Insurance premiums for an insurance product for the protection only of a disabled person specified by Presidential Decree, among insurance products for which a disabled person entitled to basic deduction may be designated as the insured or a beneficiary; |
| 2. | Insurance premiums for an insurance product specified by Presidential Decree, for which a person entitled to basic deduction is designated as the insured (excluding insurance premiums for an insurance product for the protection only of a disabled person under subparagraph 1). |
| (2) | If a resident with wage and salary income pays medical expenses specified by Presidential Decree, during the relevant taxable period, for persons entitled to basic deduction (regardless of their age or income), the amount equivalent to 15/100 (or 20/100, in cases falling under subparagraph 3; 30/100, in cases falling under subparagraph 4) of the following amounts shall be deducted from the calculated tax amount on global income for the relevant taxable period: <Amended by Act No. 12852, Dec. 23, 2014; Act No. 14389, Dec. 20, 2016; Act No. 15225, Dec. 19, 2017; Dec. 8, 2021> |
| 1. | The amount exceeding the amount calculated by multiplying gross pay by 3/100, out of medial expenses paid for the persons entitled to basic deduction (excluding medical expenses specified in subparagraphs 2 through 4): Provided, That, if the amount exceeds seven million won per year, the amount shall be deemed seven million won per year; |
| 2. | Medical expenses paid for any of the following persons: Provided, That, if medical expenses under subparagraph 1 fall short of the amount calculated by multiplying gross pay by 3/100, the shortfall shall be deducted: |
| (a) | The resident him/herself; |
| (b) | Persons aged at least 65 years as at the end of the taxable period; |
| (c) | Persons with disabilities; |
| (d) | Patients specified as those suffering from a severe disease prescribed by Presidential Decree, a rare intractable disease, or tuberculosis; |
| 3. | Medical expenses paid for premature infants and congenitally abnormal infants as prescribed by Presidential Decree: Provided, That if the total amount of medical expenses described in subparagraphs 1 and 2 falls short of the amount calculated by multiplying the gross pay by 3/100, the shortfall shall be deducted; |
| 4. | Medical expenses incurred for infertility treatment (hereafter referred to as “infertility treatment” in this subparagraph) as prescribed by Presidential Decree (including expenses for purchasing drugs as defined in Article 2 of the Pharmaceutical Affairs Act, prescribed by a doctor in relation to infertility treatment): Provided, That if the total amount of medical expenses described in subparagraphs 1 through 3 falls short of the amount calculated by multiplying the gross pay by 3/100, the shortfall shall be deducted. |
| (3) | If a resident with wage and salary income pays education expenses specified by Presidential Decree, during the relevant taxable period, for the resident him/herself and persons entitled to basic deduction (regardless of their age, but limited to persons who are under 18 years of age as at the end of the taxable period in cases of any of the institutions specified in subparagraph 3 (b)), the amount equivalent to 15/100 of the following amounts shall be deducted from the calculated tax amount on global income for the taxable period: Provided, That the education expenses specified by Presidential Decree as those exempt from income tax or gift tax shall not be deducted: <Amended by Act No. 12852, Dec. 23, 2014; Act No. 14389, Dec. 20, 2016; Aug. 17, 2021; Dec. 31, 2022> |
| 1. | The sum of the following education expenses paid for the spouse, lineal descendants, siblings, adopted children, and foster children entitled to basic deduction (hereafter referred to as "lineal descendents, etc." in this subparagraph): Provided, That education expenses paid to a graduate school or paid with the student loans referred to in subparagraph 2 (d), borrowed by lineal descendents, etc., shall be excluded herefrom, and the maximum limit for college students shall be nine million won per year per person, while the maximum limit for preschoolers and students enrolled in an elementary, secondary, or high school shall be three million won per year per person: |
| (b) | Education expenses paid for the following lifelong education facilities or courses: |
| (i) | A lifelong education facility in the form of a school graduates of which are recognized as those graduated from a high school or a lower-level school under Article 31 (2) of the Lifelong Education Act, a lifelong education facility that may use the title "specialized college" under Article 31 (4) of the same Act (hereinafter referred to as "specialized college"), or a lifelong education facility in the form of a distance college under Article 33 of the same Act (hereinafter referred to as "distance college"); |
| (c) | Education expenses paid to overseas educational institutions specified by Presidential Decree (applicable only to students specified by Presidential Decree, if the resident who pays education expenses for students enrolled in an overseas educational institution works within the Republic of Korea); |
| (d) | Education expenses paid to child care facilities defined under the Infant Care Act for preschoolers, private teaching institutes defined under the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, or sports facilities specified by Presidential Decree (limited to the amount specified by Presidential Decree, out of expenses paid to private teaching institutes and sports facilities); |
| 2. | The sum of the following education expenses paid for the resident him/herself: |
| (a) | Education expenses specified in subparagraph 1 (a) through (c); |
| (b) | Education expenses paid for educational courses provided for at least one semester by a college (including courses provide by a specialized college, a distance college, and other courses for the acquisition of an academic degree) or by a graduate school and for programs for part-time enrollment under Article 36 of the Higher Education Act; |
| (d) | Education expenses paid for repaying the principal of student loans specified by Presidential Decree and paying interest thereon: Provided, That the amount of the payments specified by Presidential Decree, including the amount additionally paid due to the late repayment of a loan, shall be excluded herefrom; |
| 3. | Special education expenses specified by Presidential Decree, out of such expenses paid to any of the following entities for persons with disabilities entitled to basic deduction (regardless of income): |
| (a) | A social welfare facility or a non-profit corporation specified by Presidential Decree; |
| (b) | An institution specified by Presidential Decree, among those that provide rehabilitative services for the improvement and development of functions and behavior of persons with disabilities; |
| (c) | A facility or corporation in a foreign country, which is similar to the facilities or corporations specified in item (a) above. |
| (4) | If a resident (excluding persons with business income only, but including persons specified by Presidential Decree, such as those specified in Article 73 (1) 4) made donations during the relevant taxable period (including donations made by the persons specified in Article 50 (1) 2 or 3 (excluding persons entitled to basic deduction for another resident, regardless of age)), the amount equivalent to 15/100 (or 30/100 of the amount exceeding 10 million won, if the relevant amount exceeds 10 million won) of the amount calculated by subtracting the donations included in necessary expenses from the sum of the following donations (hereafter referred to as "tax credit for donations" in Article 61 (2)), shall be deducted from the calculated tax amount on global income subject to aggregate taxation for the relevant taxable period (excluding the calculated tax amount on business income, if donations have been already included in necessary expenses), when calculating the amount of business income. In such cases, the donations under subparagraph 1 shall be deducted first, if donations under subparagraph 1 and donations under subparagraph 2 were made concurrently during the relevant taxable period, but the donations made on or before December 31, 2013 shall be deducted first, prior to the donations made during the relevant taxable period, if the former donations were carried over and are deducted from income for the taxable period that begins on or after January 1, 2014: <Amended by Act No. 12852, Dec. 23, 2014; Act No. 13558, Dec. 15, 2015; Act No. 14389, Dec. 20, 2016; Act No. 16104, Dec. 31, 2018; Dec. 29, 2020; Dec. 31, 2022> |
| 1. | Special donations as specified in Article 34 (2) 1; |
| 2. | General donations as specified in Article 34 (3) 1. In such cases, the maximum limit on such donations shall be as follows: |
| (a) | Where donations are made to a religious organization: |
Maximum limit = [The amount calculated by subtracting the donations under subparagraph 1 from the amount of global income (excluding the interest income and dividend income subject to withholding tax rates under Article 62); hereafter referred to as "amount of income" in this paragraph] x 10/100 + [20/100 of the amount of income or the amount of donations given to non-religious organizations, whichever is smaller]; | (b) | Cases that do not fall under item (a) above: |
Maximum limit = 30/100 of the amount of income.
| (5) | In applying paragraphs (1) through (3), if any amount is already paid for a person who was a resident's spouse, dependent, or disabled person who ceased to be entitled to basic deduction due to marriage, divorce, separation, employment, or any other cause before the end of the relevant taxable period or for a person aged at least 65 years at the end of the relevant taxable period, the amount calculated by applying the rates under paragraphs (1) through (3) to the amount paid until the date on which such cause arose shall be deducted from the calculated tax amount on global income during the relevant taxable period. |
| (6) | The deductions under paragraphs (1) through (4) shall apply where a resident files an application, as prescribed by Presidential Decree. |
| (7) | To ascertain whether educational expenses specified in paragraph (3) 2 (d) are eligible for tax credit, the Commissioner of National Tax Service may request any of the institutions specified by Presidential Decree as those which provide services for the lending and repayment of student loans, including the Korea Student Aid Foundation established under Article 6 of the Act on the Establishment, etc. of Korea Student Aid Foundation (hereafter referred to as "Korea Student Aid Foundation or any similar institution" in this paragraph), to provide the data specified by Presidential Decree, such as details of student loans and of repayment of principal and interest thereon. In such cases, upon receipt of such request, the Korea Student Aid Foundation or any similar institution shall comply therewith, except in extenuating circumstances. <Newly Inserted by Act No. 14389, Dec. 20, 2016> |
| (8) | Notwithstanding paragraph (4), in the case of deducting donations made from January 1, 2021 to December 31, 2022 from the total amount of calculated tax amount on global income?(excluding the amount of calculated tax on business income, if there is any donation included in necessary expenses) for the relevant taxable period, an amount equal to 5/100 of the sum of the donations specified in the subparagraphs of paragraph (4) minus the amount of donations attributable to necessary expenses when calculating the amount of business income shall be further deducted, in addition to the tax credit under paragraph (4). <Newly Inserted on Dec. 8, 2021; Dec. 31, 2022> |
| (9) | For a resident falling within any of the following subparagraphs, the amount specified below shall be deducted from the total amount of calculated tax amount on global income (hereinafter referred to as "standard tax credit"): <Amended on Dec. 29, 2020> |
| (a) | For a business entity who meets the requirements specified by Presidential Decree with regard to the reporting, etc. of business accounts under Article 160-5 (3) (hereinafter referred to as "compliant business entity"): 120,000 won per year; |
| (b) | For a resident other than the business entities specified in item (a) above: 70,000 won per year. |
| (10) | The credits under paragraphs (1) through (9) shall be referred to as "special tax credits." |
| (11) | Other necessary matters concerning special tax credits shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 12169, Jan. 1, 2014]