The goverment has announced a tax law revision set to be implemented from January 2024. Today, I bring good news for employees.
If you have seen my previous post at Septemebr(refer to the post below), you'd be aware of the non-taxable items in an employee's salary. Typically, there are 3items that people can usually can apply for: 1)Meal allowance(200,000KRW) , 2)Subsidy for use of private vehicle(200,000KRW) and Child care allowance(100,000KRW).
[Payroll] Reducing Your Income Tax with Non-Taxable Salary
When you receive a salary from a company, it typically comes with taxes and four social insurance contributions that reduce your net income as your salary increases. However, there are a few salary components classified as non-taxable under the Income Tax
www.g-tax.kr
The initial piece of good news is the limit for non-taxable child care allowances will be raised to 200,000KRW per month dobuling from the previous 100,000KRW.
The child care allowance is a non-taxable salay item applicable to emplyoess with a child under the age of 6. To Avail this non-taxable salary, the company should report the employee's salary as child care salay in the payslip.
Another piece of good news for employees with children is that the tax credit for children will also increae starting from January 1, 2024.
During personal income tax filing, employees can claim tax credits for their children. the amounts has been raised to 350,000KRW from the previous 300,000KRW. This increase applies when you have second and third child.
G-tax(Seoul, Korea)
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