Starting next month, a portion of health club and swimming pool facility usage fees will be eligible for income deduction.

The Ministry of Culture, Sports and Tourism, together with the Korea Culture Information Service Agency, announced on June 30 that, beginning July 1, the scope of the cultural expense income deduction will be expanded beyond the culture and arts sector to include health clubs and swimming pools.

Photo to aid understanding of the article. Asia Economy DB.

원본보기 아이콘

The cultural expense income deduction system, which was mainly applied to cultural areas such as book purchases, performance tickets, art museum admission fees, and newspaper subscription fees, was extended last year by the government's tax law revision to include health clubs and swimming pools.

Accordingly, wage earners with a total salary of 70 million won or less can receive an income deduction of 30% of the facility usage fees, up to a maximum limit of 3 million won.

The deduction does not apply everywhere. Income deductions will be available for usage fees at over 1,000 health clubs (fitness centers) and swimming pools nationwide. Since January of this year, the Ministry of Culture, Sports and Tourism and the Korea Culture Information Service Agency have been recruiting businesses wishing to participate in the program. By the end of June, over 1,000 health clubs and swimming pools nationwide had registered.

원본보기 아이콘

Participating institutions include private sports facilities and public sports facilities equipped with swimming pools or health clubs, which have been reported as swimming pool businesses, fitness center businesses, or comprehensive sports facility businesses under the Sports Facilities Act. The Ministry of Culture, Sports and Tourism plans to continue promoting the program to further expand the number of participating institutions. The current list of eligible facilities can be checked, and new facilities can be registered, on the 'Cultural Expense Income Deduction' website.

The criteria for facility usage fees eligible for deduction vary depending on the type of usage. For admission fees (daily or monthly), the entire amount is recognized as a facility usage fee. However, for lesson fees within the facility (such as personal training or swimming lessons), where it is not possible to separate facility usage fees from other costs, only half of the total amount is recognized as a facility usage fee. In addition, purchases of sports equipment and beverages within the facility are excluded from the facility usage fee.

The Ministry of Culture, Sports and Tourism stated, "We expect that this income deduction system will further promote physical activity, thereby improving public health and revitalizing the sports industry."