[비즈한국] The '13th-month salary' season is back. The National Tax Service will open its year-end tax settlement Hometax simplification service on the 15th. This year marks the first time that major tax law amendments aimed at addressing low birth rates and revitalizing the people's economy will be reflected in the year-end settlement. In particular, benefits closely tied to daily life have significantly increased, such as the new deduction for gym facility usage fees and expanded tax credits for children.
The most radical change this year is the introduction of an 'income deduction for sports facility usage fees.' To promote public health and boost domestic demand, the government has expanded the scope of cultural expense deductions, which were previously limited to books and performances, to include sports facilities. You can receive a 30% income deduction on payments made to gyms, swimming pools, yoga, and Pilates studios from July 2025 onwards. However, this is restricted to those with an income of 70 million won or less, and costs for personal training (PT) or private lessons are excluded.
Tax benefits for overcoming the low birth rate have also been strengthened to an all-time high. Households with children are expected to see a significant increase in tax refunds compared to last year. This is because the tax credit for children (including grandchildren) aged 8 or older, who qualify for the basic deduction, has been raised by 100,000 won each. The credit is now 250,000 won for the first child, 300,000 won for the second, and 400,000 won per person for the third child and beyond. Households with three children can receive up to 950,000 won in tax credits.
It is also noteworthy that 'career-interrupted men' have been included in the income tax reduction for employees at small and medium-sized enterprises (SMEs). Male employees who resigned to raise children and were re-employed at an SME after March 14, 2025, can receive a 70% income tax reduction (up to 2 million won) for three years from the date of employment.
Institutional improvements to stabilize the real estate market and build a housing ladder for young people are also notable. Previously, only housing subscription savings in the name of the head of a non-homeowning household were deductible, but now, contributions made to housing subscription savings by a spouse who is the head of the household are also eligible for income deduction. This measure is designed to encourage dual-income couples to join subscription programs, allowing for a 40% deduction on annual contributions up to a 3 million won limit.
The Hometown Love Donation system will also be significantly strengthened. To prevent local population decline, the donation limit for the Hometown Love Donation program has been raised from 5 million won to 20 million won. Donations up to 100,000 won are fully tax-deductible, and amounts exceeding 100,000 won receive a 16.5% deduction. Notably, the tax deduction rate for the portion exceeding 100,000 won for donations made to special disaster areas is twice as high as that for general areas. However, donations must be made within 3 months of the disaster area designation.
However, some point out that it remains to be seen how much the expansion of the system will actually lead to increased refunds. For instance, although the scope of cultural expense deductions has been expanded to include swimming pools and gyms, the system has not been fully utilized due to a lack of consumer awareness and insufficient preparation by businesses. According to a recent survey by the Korea Consumer Agency, awareness of the cultural expense deduction system was only 2.6 out of 5 points, and it was confirmed that some businesses might fail to register or have inadequate payment systems, potentially leading to missed deductions.
Consequently, concerns are being raised that consumers might suffer losses by failing to receive year-end tax refunds despite having made eligible expenditures. The Korea Consumer Agency advised that when purchasing cultural expense products, consumers should verify in advance whether the business is registered for income deductions and ensure they check whether the deductions are reflected in the year-end settlement simplification service.