They say you can save on taxes during the year-end tax settlement if you prove rental payments. Can't it be done easily?
The National Tax Service announced on the 21st that if workers paying monthly rent in advance submit the lease contract and details of rent expenditure through Hometax to apply for 'dwelling lease cash receipt issuance,' a cash receipt will be issued for the rent expenditure after review by a tax office staff.
Workers with earned income and a total salary of 80 million won or less, who qualify for the monthly rent tax credit, can prove rent payments through the 'cash receipt issuance details' in the simplified year-end settlement service. There is no need to submit separate transfer proof documents, making the year-end settlement process easy. However, if claiming the monthly rent tax credit, it cannot be applied concurrently with credit card or other income deductions.
If the salary exceeds the limit and one is not eligible for the monthly rent tax credit, the amount specified on cash receipts can be recognized as part of the credit card or cash income deduction. Even without receiving the rent tax credit, one can still benefit from the income deduction for consumptive expenditures with cash.