Turning a Tax Bill into a Bonus

December is a busy month for employees in Korea. For some, it’s a welcome refund; for others, it’s a painful additional tax bill. Here are three key strategies to win the 2024 tax settlement.

Use the calculator below to simulate your current status in real-time.

1. The ‘Golden Ratio’ of Credit vs. Debit Cards

Is it always better to use a debit card? The answer is: “It changes based on your 25% threshold.”

• Up to 25% of your total salary: Use your Credit Card to enjoy various rewards and benefits.
• Beyond 25% of your total salary: Pivot to Debit Cards or Cash Receipts to get twice the deduction rate (30%).

2. Pension Savings and IRP: The Tax Shield

The most effective way to reduce your final tax amount is through ‘Tax Credits.’

• Pension Savings + IRP: You can get tax credits on contributions up to 9 million KRW.
• Deduction Rate: Depending on your income, you can get back between 13.2% and 16.5% of your contributions.

3. 2024 Changes to Watch

Several deduction limits and eligibility criteria for housing and child care have been updated this year. Use our calculator to see how these changes affect your specific situation.

Conclusion

Tax settlement is more than just paperwork; it’s a way to wrap up your financial year and plan for the next. Use the Ahoxy calculator to simulate your current status and make the best choices before the year ends.

What is Year End Settlement?

Try Year End Settlement for free.

Disclaimer

This tool is for reference only. Please consult professionals for important decisions.

Usage Guide

1. Enter the required information
2. Check the results
3. Recalculate or adjust as needed

Frequently Asked Questions

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Related Tools

Try these related tools:

• Salary Calculator
• Tax Calendar