'KRW 100,000 per month + α'... Non-taxable limit for office workers' meal expenses to increase

19 Years of Meal Allowance at 5,000 KRW per Meal
Even with 100,000 KRW Monthly Company Support Amid Inflation, It Covers Only 10 Days
Yoo Kyung-jun and Song Eon-seok Successively Propose Bills to Expand Tax Exemption

[Image source=Yonhap News]

As prices continue to soar, the ruling party is consecutively proposing bills aimed at easing the financial burden on households. With the rising cost of dining out, the focus appears to be on expanding tax-exempt benefits for meal expenses of office workers.

According to political circles on the 17th, Yoo Kyung-joon, a member of the People Power Party, plans to take the lead in proposing an amendment to the Income Tax Act that links the tax-exempt limit for office workers' meal expenses to the 'average consumer price inflation rate over the past three years.' Under the current Income Tax Act, the tax-exempt limit for office workers' meal expenses is 100,000 KRW per month. This 100,000 KRW roughly equates to 5,000 KRW per meal based on 20 working days. It has remained unchanged for 19 years since being raised from 50,000 KRW to 100,000 KRW in 2003. Employees pay comprehensive income tax on their earnings at the end of each year, but no tax is imposed on the 100,000 KRW meal expense. Most companies provide employees with the tax-exempt 100,000 KRW as meal expenses. However, there have been consistent criticisms that this does not adequately reflect the rapidly rising dining-out prices.

The bill aims to raise the tax-exempt limit for meal expenses, currently capped at 100,000 KRW, by reflecting the consumer price inflation rate. If the bill passes, the tax-exempt benefit for office workers' meal expenses will increase, and there may be room for companies to raise the meal allowances they provide. This is in line with the Yoon Seok-yeol administration's full efforts to stabilize prices and livelihoods, with the ruling party also seeking to reduce household tax burdens even slightly through legislative support.

On the same day, Song Eon-seok, also from the same party, took the lead in proposing an amendment to the Income Tax Act to expand the tax-exempt limit for workers' meal expenses from 100,000 KRW to 200,000 KRW per month. This law changes the system so that the tax-exempt limit for meal expenses, which is currently determined by enforcement ordinances, will be decided through legislation by the National Assembly.

A representative from Song Eon-seok's office explained in a phone interview with Asia Economy, "Nearly 20 years have passed, and prices have already risen as much as they can. This is an attempt to at least adjust to that minimum level. It can be seen as a measure to stabilize household finances."

This content was produced with the assistance of AI translation services.