Credit Card Income Tax Deduction: Who Qualifies and What You Get
Learn how to claim tax deductions on your credit and debit card spending if you meet the annual salary threshold.
This scheme allows employees to reduce their taxable income based on how much they spend using credit or debit cards throughout the year.
Who it's for
This is for employees who spend more than 25% of their total annual salary using credit or debit cards.
What you get
You can receive a tax deduction on the portion of your spending that exceeds the 25% threshold of your salary. This effectively lowers the amount of income you are taxed on.
What it costs you
There is no monetary cost to access this benefit, but it does require you to file your annual tax returns.
The catch to know
If you use cash, those receipts must be officially registered with the National Tax Service to count toward your spending threshold. If they are not registered, that spending will not help you qualify for the deduction.
How to apply
- Track your annual spending across credit and debit cards.
- Ensure all cash receipts are registered with the tax authorities.
- File your annual tax return during the designated period.
- Use the official portal to complete your filing: https://www.hometax.go.kr