[2024 Budget] Next Year's National Tax Reduction Amount 77 Trillion Won... Impact of Tax Credits and Child Tax Credit Benefits

Next year's national tax reduction amount is projected to increase by 7.6 trillion KRW from this year, reaching 77.1 trillion KRW.

The government announced on the 29th that it plans to submit the "2024 Tax Expenditure Budget" containing this information to the National Assembly on the 1st of next month.

The Tax Expenditure Budget is an attached document to the 2024 government budget proposal under the National Finance Act. It compiles and analyzes three years of actual results and forecasts of tax expenditures such as exemptions, tax credits, tax reductions, and income deductions under the Restriction of Special Taxation Act and individual tax laws.

The national tax reduction amount in 2022 was 63.5 trillion KRW, increasing by 6.5 trillion KRW compared to 2021 (57 trillion KRW) due to tax support for promoting corporate investment such as research and development (R&D) tax credits and integrated investment tax credits. The national tax reduction rate was 13.1%, which was 1.5 percentage points below the statutory limit of 14.6%.

The national tax reduction amount for 2023 is expected to be 69.5 trillion KRW, increasing by 6 trillion KRW from the previous year due to the rise in R&D tax credits and the expansion of income deductions for credit card usage. The national tax reduction rate is expected to be 13.9%, 0.4 percentage points below the statutory limit (14.3%).

The national tax reduction amount for 2024 is projected to be 77.1 trillion KRW, increasing by 7.6 trillion KRW from this year due to tax support measures to boost economic vitality, such as the reintroduction of temporary investment tax credits and the expansion of child tax credits. The national tax reduction rate is expected to be 16.3%, exceeding the statutory limit (14.0%) by 2.3 percentage points.

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