Article 91-20 (Income Deduction for Youth Type Long-Term Investment Trust Securities Savings)

Where a resident who is a youth as prescribed by Presidential Decree and meets the income criteria under item 1 subscribes to the savings under item 2 (hereinafter referred to as "youth type long-term investment trust securities savings" in this Article) by December 31, 2025, an amount equivalent to 40/100 of the amount paid in each tax period during the contract period shall be deducted from the comprehensive income amount of the relevant tax period. <Amended by Dec. 31, 2022, Dec. 31, 2023, Dec. 31, 2024> 1. Must meet one of the following income criteria: a. The total earned income in the immediately preceding tax period is 50 million won or less (limited to cases where only earned income, or only comprehensive income not included in the comprehensive income tax base, exists in the immediately preceding tax period, and excluding cases with only non-taxable income). b. The amount of comprehensive income included in the comprehensive income tax base of the immediately preceding tax period is 38 million won or less (excluding cases with earned income exceeding 50 million won in total earned income in the immediately preceding tax period, and cases with only non-taxable income). 2. Savings that meet all of the following requirements: a. Savings for acquiring trust beneficiary certificates of an investment trust (limited to investment trusts under Article 17 (1) 5 of the 「Income Tax Act」) that invests at least 40/100 of its total assets in shares of a listed company under Article 9 (15) 3 of the 「Capital Markets and Financial Investment Business Act」. b. The contract period is between 3 years and 5 years, inclusive. c. The installment savings, and the payment amount per person does not exceed 6 million won annually (referring to the total amount of all youth type long-term investment trust securities savings subscribed to by the resident).

A subscriber who intends to receive an income deduction under paragraph ① shall obtain a youth type long-term investment trust securities savings payment certificate specifying the amount of savings paid in the relevant year necessary for receiving the income deduction from the financial institution handling the youth type long-term investment trust securities savings (hereinafter referred to as "savings handling institution" in this Article) and submit it to the withholding agent or the head of the tax office having jurisdiction over the address of the subscriber when completing the year-end tax settlement of earned income tax or the final tax return for comprehensive income tax base.

If the savings handling institution terminates the youth type long-term investment trust securities savings within 3 years from the date of subscription, it shall collect an amount obtained by multiplying the total accumulated amount paid into the savings by 6/100 (hereinafter referred to as "recaptured tax amount" in this Article) and pay it to the head of the tax office having jurisdiction over withholding by the 10th of the month following the month in which the date of termination of the savings contract falls. Provided, however, that in cases falling under any of the following subparagraphs, no recapture shall be made, and if the taxpayer proves that the tax amount reduced by the income deduction is less than the recaptured tax amount, the actually reduced tax amount shall be recaptured. <Amended by Dec. 31, 2023> 1. In the case of conversion subscription to other youth type long-term investment trust securities savings as prescribed by Presidential Decree. 2. In the case of termination due to unavoidable reasons prescribed by Presidential Decree, such as death or relocation abroad.

If the savings handling institution fails to pay the recaptured tax amount under paragraph ⑤ (or the actual reduced tax amount in cases where the actual reduced tax amount is recaptured) by the deadline, or pays an amount less than the amount to be paid, it shall pay an additional amount equivalent to 10/100 of the unpaid tax amount or the underpaid tax amount to the head of the tax office having jurisdiction over withholding.

If the Commissioner of the National Tax Service receives a request under paragraph ⑧, he or she shall verify whether the subscriber met the requirements at the time of subscription and notify the savings handling institution.

If the youth type long-term investment trust securities savings is deemed to have been terminated under paragraph ⑩, the savings handling institution shall notify the subscriber of this fact.

The subscription procedure for youth type long-term investment trust securities savings, verification and management of eligible subscribers, termination, income deduction procedure, and other matters necessary for the income deduction for youth type long-term investment trust securities savings shall be prescribed by Presidential Decree.