Starting in Mar., the "child tax credit" will be reflected immediately in monthly pay. Until last year, it was refunded in a lump sum at year-end settlement, but beginning in Mar., the credit will be applied each month when wages are paid. If there is one child, the monthly tax burden will fall by 20,830 won; with two children, by 45,830 won; and with three children, by 79,160 won, increasing take-home pay.
The Ministry of Finance and Economy on the 16th announced these measures through the "2025 tax law amendment follow-up enforcement decree revision." The revision includes numerous changes directly tied to daily life for families with multiple children, weekend couples, young people, and the self-employed.
◇ Weekend couples' monthly rent burden ↓, tax support for young people strengthened
Measures to ease housing costs will also be strengthened. Weekend couples who both work and have different registered addresses will each be able to receive a monthly rent tax credit as requirements are relaxed. However, lineal ascendants and descendants living with the spouse must also be without a home. In addition, for households with three or more children, the size limit of dwellings eligible for the monthly rent tax credit will be expanded from 85㎡ to 100㎡.
Tax support aimed at young people also stands out. The "Youth Future Savings" program, available to young people with an annual salary of 75 million won or less and young small business owners, allows up to 6 million won per year, and if maintained for at least three years, all interest income is exempt from tax.
The liquor tax on low-alcohol mixed beverages with an alcohol content of 8.5% or less will be reduced by 30%, with a cap of 400 kl per year. As a result, consumer prices for some beverages such as highballs are also expected to fall.
◇ Self-employed people will be exempt from delinquent tax obligations if closure debt is 50 million won or less
Starting this year, livelihood self-employed people who have closed their businesses will be exempt from the obligation to repay delinquent taxes of 50 million won or less. This applies when the average business income total revenue for the three years prior to closure is 1.5 billion won or less and the delinquent amount exceeds 140% of owned assets.
The non-taxable threshold for production workers' wage allowances will also be relaxed. The monthly fixed salary criterion will be raised from 2.1 million won or less to 2.6 million won or less, and the annual total salary criterion will be expanded from 30 million won to 37 million won or less.
The government will announce the proposed enforcement decree revision for public comment from the 19th to Feb. 5, then submit it to the Cabinet meeting in Feb., with promulgation planned for late Feb.