[Second Half Economic Policy] Expansion of Gift Tax Deduction Limit at Marriage... Pilot Introduction of Foreign Domestic Workers

Ministry of Economy and Finance Announces '2023 Second Half Economic Policy Direction'
"Gathering Public Opinion During Tax Law Revision Process"
1,000 Welfare Housing Units for Elderly Supplied Annually

The government is considering expanding the gift tax exemption limit specifically for marriage funds upon marriage to address low birth rates and aging population, and will pilot the introduction of foreign domestic workers.

According to the 'Second Half Economic Policy Direction' announced by the Ministry of Economy and Finance on the 4th, the government is reviewing a plan to increase the current gift exemption limit of 50 million won per person (over 10 years) as an incentive for marriage. Regarding the specific amount, a Ministry of Economy and Finance official stated, "We will decide after gathering public opinion during the tax law revision process."

To reduce the childcare burden on parents, foreign domestic workers will be introduced on a trial basis. Currently, only foreigners or ethnic Koreans from China who enter with permanent residency or marriage immigrant visas can be employed as domestic helpers. The government plans to pilot the issuance of non-professional employment visas (E-9) to domestic workers, allowing them to work at institutions certified by the Ministry of Employment and Labor, and will consider expanding this in the future.

The government will increase the non-taxable limit for childbirth and childcare allowances and expand child incentives. Under the current non-taxable system for childbirth and childcare allowances, if a worker receives more than 100,000 won from their employer, only up to 100,000 won is tax-exempt, and the amount exceeding 100,000 won is taxable. However, since its introduction in 2004, the limit has remained at 100,000 won per month for 19 years, leading to calls for improvement.

Additionally, tax benefits related to childcare support payments to employees will be provided to companies. The government plans to establish a legal basis allowing companies to include childcare support payments to employees as deductible expenses when filing corporate taxes. This will enable companies to reduce their corporate tax burden.

The construction of silver towns accessible to low-income and middle-class seniors will also be promoted. Since last year, the government has been pushing for the construction of rental housing where low-income elderly can receive customized welfare services. It plans to supply 1,000 units annually until 2027. Furthermore, to prevent elderly poverty, the government plans to expand incentives for private pension subscriptions such as retirement pensions and housing pensions.

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