The simplified year-end tax settlement service for 2024 will begin on the 15th.
The National Tax Service noted that it will launch the simplified service on that day and provide final confirmed data reflecting additional and corrected information starting on the 20th. This year-end tax settlement will include information on dependents that do not qualify for deductions.
It will show the list of dependents whose earned income exceeds 1 million won (in cases with only earned income, total salary of 5 million won) to prevent underreporting. Simplified data for dependents that do not qualify for deductions will not be provided.
The National Tax Service explained that it has improved the lack of features to verify whether income and tax credit eligibility requirements are met, which previously made it necessary to submit data without review, risking additional taxes of up to 40% for excessive credits or the need for an additional report.
When a worker inputs dependents as eligible for deductions, a pop-up will prompt them to confirm their annual income once more.
The National Tax Service will provide guidance upon accessing the simplified service to help prevent mistakes, such as couples claiming deductions for children or siblings claiming deductions for parents.
Certain expenses not covered by the simplified service, such as tuition for preschool children, monthly rent, and donation receipts, can be submitted manually to the respective company as proof.
The National Tax Service emphasized that 'when taxpayers receive tax credits falsely using fake donation receipts, inconveniences for the taxpayer and disadvantages of additional tax burdens arise during the correction process.'