Tax credit for children
Tax credit for children
- A resident with global income shall be eligible for the deduction of any of the following amounts for the children (including adoptees and foster children; hereafter referred to as “children eligible for tax credit” in this Article) at the age of seven or more (including schoolchildren under the age of seven) who are subject to basic deduction from the calculated tax amount on global income of such resident (Article 59-2 (1) of the Income Tax Act).
· For 1 child: KRW 150,000 per year;
· For 2 children: KRW 300,000 per year;
· For at least 3 children: The aggregate of KRW 300,000 per year and KRW 300,000 per year for each child besides two children.
- If a child eligible for a tax credit is born or reported as adopted during the relevant taxable period, any of the following amounts shall be deducted from the calculated tax amount on global income (Article 59-2 (3) of the Income Tax Act).
· If the child born or reported as adopted is the first child eligible for a tax credit: KRW 300,000 per year
· If the child born or reported as adopted is the second child eligible for a tax credit: KRW 500,000 per year
· If the child born or reported as adopted is at least the third child eligible for a tax credit: KRW 700,000 per year
Tax deduction for education expenses
Tax deduction for education expenses
- A certain amount of income tax deduction may be granted for the following education expenses paid for the spouse, lineal descendants, siblings, adopted children, and foster children entitled to a basic deduction (Article 59-4 (3) 1 of the Income Tax Act).
· Education expenses paid to schools defined under the Early Childhood Education Act
· Education expenses paid to kindergartens under the Early Childhood Education Act of Korea (Article 118-6 (5) of the Enforcement Decree of the Income Tax Act) as educational institutions located overseas
· Education expenses paid to child care centers under the Child Care Act
· The amount of tuition fees that a preschooler has paid for a monthly lesson program that provides at least one lesson per week of a private teaching institute under the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons or a sports facility (Article 118-6 (7) of the Enforcement Decree of the Income Tax Act)
※ Education expenses mean the following educational expenses (Article 118-6 (1) of the Enforcement Decree of the Income Tax Act).
1. Tuition fees, admission fees, child care fees, lecture fees, and other school fees
2. Meal charges paid to a school, kindergarten, child care center, or a private teaching institute or a sports facility specified in Article 59-4 (3) 1 (b) of the Act (applicable only to preschoolers) that provides meals under the School Meals Act, the Early Childhood Education Act, the Child Care Act, etc.
3. Tuition fees and special activity expenses for an after-class schooling program or course provided by the following schools, etc.: a kindergarten defined in the Early Childhood Education Act, a child care center defined in the Child Care Act, a private teaching institute or a sports facility specified in Article 59-4 (3) 1 (b) of the Act (applicable only to preschoolers)
Deductible amount
- You can get a tax deduction of up to KRW 3 million for education expenses per infant or young child (Article 59-4 (3) 1 of the Income Tax Act).
Nontaxation on maternity allowance and child care allowances
Nontaxation on maternity allowance and child care allowances
- The amount of money not exceeding KRW 100,000 a month as an allowance received from an employer in connection with childbirth of a worker or a spouse of a worker or child care of a child of six years old and under (to be determined based on the date of commencement of the relevant taxable period) shall be exempted (Subparagraph 3 (s) of Article 12 of the Income Tax Act).