MArticle 126-2 (Income deduction for credit card usage amounts, etc.)

The credit card income deduction amount, etc. shall be the amount obtained by subtracting the amount in subparagraph 6 from the total of the amounts in subparagraphs 1 through 5 (if the total earned income for the relevant tax year exceeds 70 million won, the total of the amounts in subparagraphs 1, 2, 4, and 5), and adding the amount in subparagraph 7 (limited to the case of calculating the credit card income deduction amount, etc. for the 2024 tax year), subject to the limits under paragraphs (10) and (11). In this case, if the credit card usage amount, etc. falls under more than one of subparagraphs 1, 2, and 3, it shall be deemed to fall under only one of them for the purpose of applying the income deduction. <Amended on Dec. 31, 2011, Jan. 1, 2013, Dec. 23, 2014, Dec. 15, 2015, Dec. 20, 2016, Dec. 19, 2017, Dec. 24, 2018, Dec. 31, 2019, Mar. 23, 2020, May. 19, 2020, Mar. 16, 2021, Dec. 31, 2022, Apr. 11, 2023, Dec. 31, 2023, Dec. 31, 2024, Oct. 1, 2025, Dec. 23, 2025> 1. Amount corresponding to the consideration for receiving goods or services from a corporation or business operator within the traditional market and merchant zone designated by Presidential Decree under Article 2 (1) of the Act on the Promotion of Traditional Markets and Merchants (excluding corporations or business operators designated by Presidential Decree), which is the total of amounts under subparagraphs 1, 2, and 4 of paragraph (1) (hereinafter referred to as "traditional market usage portion" in this paragraph) × 40/100 (50/100 for the traditional market usage portion used from April 1, 2023, to December 31, 2023) 2. Amount corresponding to the consideration for using public transportation means under the Act on the Promotion and Use of Public Transportation, which is the total of amounts under subparagraphs 1, 2, and 4 of paragraph (1) (hereinafter referred to as "public transportation usage portion" in this paragraph) × 40/100 (80/100 for the public transportation usage portion used from January 1, 2023, to December 31, 2023) 3. Amount falling under the following items (hereinafter referred to as "culture and sports usage portion" in this paragraph) × 30/100 (40/100 for the culture and sports usage portion used from April 1, 2023, to December 31, 2023) a. Amount paid to a corporation or business operator designated by the Minister of Culture, Sports and Tourism for purchasing publications under Article 2 (3) of the Promotion of Publishing Culture Industry Act (excluding harmful publications under Article 2 (8) of the same Act), subscribing to newspapers under Article 2 (1) of the Promotion of Newspapers, etc. Act, or watching performances under Article 2 (1) of the Performing Arts Act (hereinafter referred to as "book, newspaper, and performance usage portion"). In this case, the method of recognizing the book, newspaper, and performance usage portion according to the scale of the corporation or business operator (based on criteria such as sales revenue determined by the Minister of Culture, Sports and Tourism in consultation with the Minister of Economy and Finance) shall be prescribed by Presidential Decree. b. Amount paid to a corporation or business operator designated by the Minister of Culture, Sports and Tourism for admission to museums and art museums under Article 2 (1) and (2) of the Museum and Art Museum Promotion Act or movie theaters under Article 2 (10) of the Promotion of Motion Pictures and Video Products Act (hereinafter referred to as "museum, art museum, and movie theater usage portion"). In this case, the method of recognizing the museum, art museum, and movie theater usage portion according to the scale of the corporation or business operator (based on criteria such as sales revenue determined by the Minister of Culture, Sports and Tourism in consultation with the Minister of Economy and Finance) and other necessary matters shall be prescribed by Presidential Decree. c. Amount paid to a corporation or business operator designated by the Minister of Culture, Sports and Tourism for using sports facilities prescribed by Presidential Decree (hereinafter referred to as "sports facility usage portion" in this item). In this case, the specific scope of the sports facility usage portion and other necessary matters shall be prescribed by Presidential Decree. 4. Amount under subparagraphs 2 and 4 of paragraph (1) (excluding amounts included in the traditional market usage portion, public transportation usage portion, and culture and sports usage portion if the total earned income for the relevant tax year is 70 million won or less; excluding amounts included in the traditional market usage portion and public transportation usage portion if the total earned income for the relevant tax year exceeds 70 million won; hereinafter referred to as "debit card usage portion, etc." in this paragraph) × 30/100 5. Amount remaining after subtracting the traditional market usage portion, public transportation usage portion, and debit card usage portion, etc. from the total amount of credit card usage amount, etc. (if the total earned income for the relevant tax year is 70 million won or less, it refers to the amount after additionally subtracting the culture and sports usage portion; hereinafter referred to as "credit card usage portion" in this paragraph) × 15/100 6. Amount according to the classification below. However, the credit card income deduction amount, etc. for credit card usage amounts, etc. used from January 1, 2023, to December 31, 2023, shall be calculated according to the table. a. If the minimum usage amount is less than or equal to the credit card usage portion: Minimum usage amount × 15/100 b. If the minimum usage amount is greater than the credit card usage portion and less than or equal to the sum of the credit card usage portion and the debit card usage portion, etc. (if the total earned income for the relevant tax year is 70 million won or less, the sum additionally including the culture and sports usage portion): Credit card usage portion × 15/100 + (Minimum usage amount - Credit card usage portion) × 30/100 c. If the minimum usage amount is greater than the sum of the credit card usage portion and the debit card usage portion, etc.: Amount according to the following classification 1) If the total earned income for the relevant tax year is 70 million won or less: Credit card usage portion × 15/100 + (Debit card usage portion, etc. + Culture and sports usage portion) × 30/100 + (Minimum usage amount - Credit card usage portion - Debit card usage portion, etc. - Culture and sports usage portion) × 40/100 2) If the total earned income for the relevant tax year exceeds 70 million won: Credit card usage portion × 15/100 + Debit card usage portion, etc. × 30/100 + (Minimum usage amount - Credit card usage portion - Debit card usage portion, etc.) × 40/100 d. Deleted <Dec. 31, 2023> 7. Amount obtained by subtracting 105/100 of the annual total credit card usage amount, etc. for the period from January 1, 2023, to December 31, 2023, from the annual total credit card usage amount, etc. for the period from January 1, 2024, to December 31, 2024 (if less than 0, it is considered 0) × 10/100 8. Deleted <Apr. 11, 2023>

When applying paragraph (1), if the credit card usage amount, etc. falls under any of the following subparagraphs, it shall not be included in the credit card usage amount, etc. Provided, however, that in the case of subparagraph 3, if used vehicles are purchased with a credit card, debit card, debit electronic payment instrument, registered prepaid card, registered prepaid electronic payment instrument, registered electronic money, or cash receipt, the amount prescribed by Presidential Decree within the purchase price of the used vehicle shall be included in the credit card usage amount, etc. <Amended on Dec. 20, 2016> 1. Cases where it corresponds to expenses related to business income or expenses of a corporation 2. Cases where it corresponds to abnormal usage of credit cards, debit cards, debit electronic payment instruments, registered prepaid cards, registered prepaid electronic payment instruments, registered electronic money, or cash receipts as prescribed by Presidential Decree, such as simulating the sale of goods or provision of services 3. Cases where automobiles are purchased with credit cards, debit cards, debit electronic payment instruments, registered prepaid cards, registered prepaid electronic payment instruments, registered electronic money, or cash receipts 4. Other cases prescribed by Presidential Decree

The Commissioner of the National Tax Service may order credit card issuers under Article 2 of the Specialized Credit Financial Business Act, electronic financial service providers and electronic financial assistant service providers under Article 2 of the Electronic Financial Transactions Act, to provide notification of credit card usage amounts, etc. and other matters necessary for income deduction for credit card usage amounts, etc.

The credit card usage amount, etc. shall be the sum of the amounts used, stated, or paid during the relevant tax period.

The credit card income deduction amount, etc. under paragraph (2) shall be limited to 2.5 million won annually (3 million won annually if the total earned income for the relevant tax year is 70 million won or less). Provided, however, for persons with dependents such as children and grandchildren prescribed by Presidential Decree (hereinafter referred to as "children, etc." in this paragraph), the limit shall be as follows: 1. If the total earned income for the relevant tax year is 70 million won or less: 3.5 million won annually if there is one child, etc., and 4 million won annually if there are two or more children, etc. 2. In cases other than subparagraph 1: 2.75 million won annually if there is one child, etc., and 3 million won annually if there are two or more children, etc. <Amended on Dec. 23, 2025>