Under the Restriction of Special Taxation Act (Article 126-2), certain individuals in Korea can benefit from income deductions based on the amount spent using credit cards, debit cards, and cash receipts. The deductions apply to residents with wage and salary income, their spouses with an annual income of not more than 1 million won, and their lineal descendants and ascendants with an annual inc..

In this blog post, we will delve into the concept of necessary entertainment expenses for income tax purposes in Korea. Understanding what qualifies as necessary expenses can help businesses optimize their tax deductions while ensuring compliance with the relevant regulations. Necessary Entertainment Expenses According to Article 35 of the Income Tax Act, entertainment expenses related to busine..

When it comes to income tax in Korea, understanding donations and their inclusion in necessary expenses is essential. This article will break down the rules and limits for different types of donations, so you can have a clear understanding of how they affect your taxable income. Designated Donations and Necessary Expenses Under Article 34(2) of the Income Tax Act, designated donations are subjec..