Starting from this year's year-end tax adjustment, individuals can receive an income deduction for housing mortgage loan interest repayments up to a maximum of 20 million won. The price criterion for dwellings eligible for the income deduction is set at up to 600 million won for dwellings acquired on or after Jan. 1 this year.
According to the National Tax Service on the 18th, the housing burden alleviation tax system will apply to the 2024 year-end tax adjustments starting from Jan. 15.
The deduction for housing mortgage loan interest repayments is a system that subtracts the interest repayment amount from the taxable income for those who purchased a house with a loan. Until last year, the limit for housing mortgage loan income deduction was up to 18 million won, but from this year, it has been raised to 20 million won. The price criterion for dwellings eligible for the interest repayment income deduction has also been raised from the previous 500 million won to 600 million won for dwellings acquired on or after Jan. 1 this year.
The eligible criteria and amount for the tax credit on monthly rent will also be expanded. Previously, it applied to workers with a total income of up to 70 million won, but it has been increased to those earning up to 80 million won. The limit has also been extended from 7.5 million won to 10 million won. The monthly rent tax credit is a system that provides a tax credit of 15% of the expenditures on rent (17% for workers earning a total income of up to 55 million won).
If you paid monthly rent of 1 million won, you can receive a tax credit of 150,000 won on 15% of the rent paid, up to a maximum limit of 10 million won from a total annual rent payment of 12 million won.
The 'Comprehensive Housing Subscription Savings Income Deduction' limit has also increased from 2.4 million won to 3 million won annually. Based on the monthly payment, it has risen from 200,000 won to 250,000 won.
An additional income deduction for expanded consumption to boost domestic demand is also provided. If the amount spent using credit/debit cards and cash receipts exceeds by 5% the amount used in 2023 (increased consumption amount), an additional income deduction of 10% of the increased consumption amount will be granted. The limit for the additional income deduction on increased consumption is 1 million won.