Article 126-2 (Income Deduction for Amounts Spent on Credit Cards, etc.)

(hereinafter referred to as the "income deduction amount for credit cards, etc." in this Article) shall be deducted from the earned income amount for the relevant taxable year. <Amended by Act No. 11143, Dec. 31, 2011, Act No. 12884, Dec. 23, 2014, Act No. 14467, Dec. 20, 2016, Act No. 16120, Dec. 24, 2018, Act No. 16851, Dec. 31, 2019, Act No. 17850, Mar. 16, 2021, Act No. 19107, Dec. 31, 2022, Act No. 19752, Dec. 23, 2025> 1. Amounts paid as consideration for using a credit card as defined in Article 2 of the Specialized Credit Financial Business Act. 2. Amounts stated on a cash receipt as provided in Article 126-3 (including those confirmed as cash transactions under Article 126-5; hereinafter referred to as "cash receipt" in this Article). 3. Deleted <by Act No. 11622, Jan. 1, 2013> 4. Amounts paid as consideration for using a debit card or prepaid card as defined in Article 2 of the Specialized Credit Financial Business Act (limited to those whose real name is confirmed according to Presidential Decree; hereinafter referred to as "registered prepaid card" in this Article), a deferred debit payment instrument or prepaid payment instrument as defined in Article 2 of the Electronic Financial Transactions Act (limited to those whose real name is confirmed according to Presidential Decree; hereinafter referred to as "registered deferred debit payment instrument, prepaid payment instrument" in this Article), or electronic currency (limited to those whose real name is confirmed according to Presidential Decree; hereinafter referred to as "registered electronic currency" in this Article). ② The income deduction amount for credit cards, etc. shall be the amount obtained by subtracting the amount under subparagraph 6 from the sum of the amounts under subparagraphs 1 through 5 (if the total earned income for the relevant taxable year exceeds 70 million won, the sum of the amounts under subparagraphs 1, 2, 4, and 5) and adding the amount under subparagraph 7 (limited to the case where the income deduction amount for credit cards, etc. for the 2024 taxable year is calculated), subject to the limits under paragraphs 10 and 11. In this case, if amounts spent on credit cards, etc. fall under multiple categories in subparagraphs 1, 2, and 3, income deduction shall be applied as if it falls under only one of them. <Amended by Act No. 11143, Dec. 31, 2011, Act No. 11622, Jan. 1, 2013, Act No. 12884, Dec. 23, 2014, Act No. 13595, Dec. 15, 2015, Act No. 14467, Dec. 20, 2016, Act No. 14518, Dec. 19, 2017, Act No. 16120, Dec. 24, 2018, Act No. 16851, Dec. 31, 2019, Act No. 17179, Mar. 23, 2020, Act No. 17225, May. 19, 2020, Act No. 17850, Mar. 16, 2021, Act No. 19107, Dec. 31, 2022, Act No. 19478, Apr. 11, 2023, Act No. 19735, Dec. 31, 2023, Act No. 19751, Dec. 31, 2024, Act No. 19904, Oct. 1, 2025, Act No. 19752, Dec. 23, 2025> 1. An amount corresponding to the payment for goods or services received from a corporation or business operator within a traditional market and commercial district as defined in Article 2(1) of the Act on the Promotion of Traditional Markets and Merchant Districts, and traditional market areas designated by Presidential Decree (excluding corporations or business operators designated by Presidential Decree), which is the sum of the amounts under subparagraphs 1, 2, and 4 of paragraph 1 (hereinafter referred to as "amount spent in traditional markets" in this subparagraph) × 40 percent (50 percent for amounts spent in traditional markets from April 1, 2023, to December 31, 2023). 2. An amount corresponding to the payment for using public transportation facilities as defined in the Act on Promotion and Use of Public Transportation, which is the sum of the amounts under subparagraphs 1, 2, and 4 of paragraph 1 (hereinafter referred to as "amount spent on public transportation" in this subparagraph) × 40 percent (80 percent for amounts spent on public transportation from January 1, 2023, to December 31, 2023). 3. An amount corresponding to any of the following (hereinafter referred to as "amount spent on culture and sports" in this subparagraph) × 30 percent (40 percent for amounts spent on culture and sports from April 1, 2023, to December 31, 2023). a. Amounts paid to corporations or business operators designated by the Minister of Culture, Sports and Tourism for purchasing publications as defined in Article 2(3) of the Act on Promotion of Publishing Culture Industry (excluding harmful publications as defined in Article 2(8) of the same Act), subscribing to newspapers as defined in Article 2(1) of the Act on Promotion of Newspapers, etc., or viewing performances as defined in Article 2(1) of the Performing Arts Act (hereinafter referred to as "amount spent on books, newspapers, and performances"). In this case, the method of recognition for amounts spent on books, newspapers, and performances according to the scale of the corporation or business operator (based on criteria such as sales volume, determined by the Minister of Culture, Sports and Tourism in consultation with the Minister of Economy and Finance) shall be determined by Presidential Decree. b. Amounts paid to corporations or business operators designated by the Minister of Culture, Sports and Tourism for admission to museums and art galleries as defined in Article 2(1) and (2) of the Museum and Art Gallery Promotion Act, or cinemas as defined in Article 2(10) of the Promotion of Motion Pictures and Video Products Act (hereinafter referred to as "amount spent on museums, art galleries, and cinemas"). In this case, the methods for recognizing amounts spent on museums, art galleries, and cinemas according to the scale of the corporation or business operator (based on criteria such as sales volume, determined by the Minister of Culture, Sports and Tourism in consultation with the Minister of Economy and Finance) shall be determined by Presidential Decree. c. Amounts paid to corporations or business operators designated by the Minister of Culture, Sports and Tourism for using sports facilities as designated by Presidential Decree (hereinafter referred to as "amount spent on sports facilities" in this item). In this case, the specific scope of amounts spent on sports facilities and other necessary matters shall be determined by Presidential Decree. 4. Amounts under subparagraphs 2 and 4 of paragraph 1 (in cases where the total earned income for the relevant taxable year is 70 million won or less, excluding amounts included in amounts spent in traditional markets, amounts spent on public transportation, and amounts spent on culture and sports; in cases where the total earned income for the relevant taxable year exceeds 70 million won, excluding amounts included in amounts spent in traditional markets and amounts spent on public transportation; hereinafter referred to as "amount spent on debit cards, etc." in this subparagraph) × 30 percent. 5. The sum of amounts spent on credit cards, etc., minus amounts spent in traditional markets, amounts spent on public transportation, and amounts spent on debit cards, etc. (in cases where the total earned income for the relevant taxable year is 70 million won or less, this refers to the amount obtained by additionally subtracting amounts spent on culture and sports; hereinafter referred to as "amount spent on credit cards" in this subparagraph) × 15 percent. 6. Amounts according to the following categories. However, the income deduction amount for credit cards, etc. for amounts spent from January 1, 2023, to December 31, 2023, shall be calculated according to the attached table. a. Where the minimum spending amount is less than or equal to the amount spent on credit cards: Minimum spending amount × 15 percent. b. Where the minimum spending amount is greater than the amount spent on credit cards and less than or equal to the sum of the amount spent on credit cards and the amount spent on debit cards, etc. (if the total earned income for the relevant taxable year is 70 million won or less, including the amount spent on culture and sports): Amount spent on credit cards × 15 percent + (Minimum spending amount - Amount spent on credit cards) × 30 percent. c. Where the minimum spending amount is greater than the sum of the amount spent on credit cards and the amount spent on debit cards, etc.: The amount according to the following categories. 1) Where the total earned income for the relevant taxable year is 70 million won or less: Amount spent on credit cards × 15 percent + (Amount spent on debit cards, etc. + Amount spent on culture and sports) × 30 percent + (Minimum spending amount - Amount spent on credit cards - Amount spent on debit cards, etc. - Amount spent on culture and sports) × 40 percent. 2) Where the total earned income for the relevant taxable year exceeds 70 million won: Amount spent on credit cards × 15 percent + Amount spent on debit cards, etc. × 30 percent + (Minimum spending amount - Amount spent on credit cards - Amount spent on debit cards, etc.) × 40 percent. d. Deleted <by Act No. 19735, Dec. 31, 2023> 7. The amount obtained by subtracting 105 percent of the annual total of amounts spent on credit cards, etc. from January 1, 2023, to December 31, 2023, from the annual total of amounts spent on credit cards, etc. from January 1, 2024, to December 31, 2024 (if less than zero, it is deemed zero) × 10 percent. 8. Deleted <by Act No. 19478, Apr. 11, 2023>

When applying paragraph ①, amounts spent on credit cards, etc. falling under any of the following subparagraphs shall not be included in the amounts spent on credit cards, etc. Provided, however, that in the case of subparagraph 3, where used medium-priced automobiles are purchased using credit cards, debit cards, deferred debit payment instruments, registered prepaid cards, registered deferred debit payment instruments, registered electronic currency, or cash receipts, the amount designated by Presidential Decree within the purchase price of such used automobiles shall be included in the amounts spent on credit cards, etc. <Amended by Act No. 14467, Dec. 20, 2016> 1. Cases where the expenses are related to business income or are expenses of a corporation. 2. Cases where there is abnormal use of credit cards, debit cards, deferred debit payment instruments, registered prepaid cards, registered deferred debit payment instruments, registered electronic currency, or cash receipts as designated by Presidential Decree, such as simulating the sale of goods or provision of services. 3. Cases where automobiles are purchased using credit cards, debit cards, deferred debit payment instruments, registered prepaid cards, registered deferred debit payment instruments, registered electronic currency, or cash receipts. 4. Other cases designated by Presidential Decree.

The Commissioner of the National Tax Service may order credit card companies as defined in Article 2 of the Specialized Credit Financial Business Act, electronic financial business operators and electronic financial auxiliary business operators as defined in Article 2 of the Electronic Financial Transactions Act, to notify amounts spent on credit cards, etc. and other matters necessary for income deduction for amounts spent on credit cards, etc.

The amounts spent on credit cards, etc. shall be the sum of amounts used, amounts stated, or amounts paid during the relevant accounting period.

The income deduction amount for credit cards, etc. under paragraph ② shall be limited to 2.5 million won annually (if the total earned income for the relevant taxable year is 70 million won or less, 3 million won annually). Provided, however, for persons with dependents such as children and grandchildren, etc. (hereinafter referred to as "children, etc." in this paragraph), the limit shall be as follows: 1. Where the total earned income for the relevant taxable year is 70 million won or less: 3.5 million won annually for one child, etc., and 4 million won annually for two or more children, etc. 2. Cases other than subparagraph 1: 2.75 million won annually for one child, etc., and 3 million won annually for two or more children, etc. <Amended by Act No. 19752, Dec. 23, 2025>