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- What is the tax concession system?
- A tax benefit management system for low tax withholding deposits within a certain limit under the Restriction of Special Taxation Act Article 89.
| Tax Benefits | 9.5% (Income Tax 9%, Special tax on the farming and fishing community 0.5%) |
|---|---|
| General Taxes | 15.4% (Income Tax 14%, Inhabitants Tax 1.4%) |
| Details | Remarks | |
|---|---|---|
| Eligible | Residents over 20 years of age under Income tax law Article 1-1 | Disabled persons under the age of 20 are eligible |
| Eligible products | Time deposits and installment savings with a period of more than 1 year |
Expires on 31 December 2011 |
| Savings limit | The total limit across all financial institutions is 10 mil KRW per person | For elderly and disabled customers the limit is up to 30 mil KRW |
| How the limits are calculated |
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| Number of accounts eligible | There is no restriction number of eligible accounts provid that the total available deposit limit hasbeen met. | |
| Withholding tax | 9.5% (Income Tax 9%, Special tax on farming and fishing community 0.5%) | General Tax : 15.4% (Income Tax 14%, Inhabitants Tax 1.4%) |
| Special termination |
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Tax benefits are applicable termination occurs within 1 year. For the circumstances listed in of ③~⑦, these has to occur at least 6 months prior to the termination. |
| Inheritance | Possible | Tax benefits are applicable within a certain limit per person if the inheritor holds the deposit for more than 1 year following the inheritance. |
- The elderly are defined as persons over 60 years of age
- Disabled persons are holders of the Disabled Identification card, defoliant sequelae patients, a victim of the 5 - 18 pro-democracy movement, Independence veterams and his family, or a beneficiary of basic living expenses from the government
