The simplified service for the 2025 year-end tax settlement will open on January 15 next year. Starting from this year-end tax settlement, the child tax credit amount will be increased by 100,000 KRW for each eligible child, and expenses for swimming pools and fitness centers will also be eligible for credit card deductions. If a hometown donation is made to a disaster-affected area, the deduction rate will be doubled.

The National Tax Service announced on December 17 that the “simplified service” on Hometax will be launched on January 15 next year. Through the simplified service, users can check 45 types of income and tax deduction documents necessary for deductions and reductions, such as educational expenses.

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From this year's year-end tax settlement, the tax burden for workers raising children will be reduced. The child tax credit amount based on the number of children eligible for the basic deduction aged 8 to 20 will be increased by 100,000 KRW compared to last year. It is 250,000 KRW for one child, 550,000 KRW for two children, 950,000 KRW for three children, and 1,350,000 KRW for four children, etc.

Male workers who resigned for child care and then rejoined a small or medium-sized enterprise after March 14 of this year can receive a 70% reduction in income tax for three years from the date of re-employment. In addition, if a child under the age of nine is receiving developmental rehabilitation services, the additional disability deduction (2 million KRW) can be claimed with just a certificate of use for developmental rehabilitation services, without the need to visit a hospital to obtain a disability certificate.

If the spouse of the head of a non-homeowning household is a worker with a total annual salary of 70 million KRW or less, they can deduct 40% of the amount paid into a home savings account, such as a comprehensive housing subscription savings account (up to 3 million KRW per year), from their income. In addition, expenses for swimming pools and fitness centers incurred after July 1 of this year are now additionally eligible for the credit card income deduction as cultural and sports expenses (at a 30% deduction rate).

The deduction rate for hometown donations made to disaster areas will be doubled, and the donation limit will also be increased. For hometown donations made to special disaster areas, amounts exceeding 100,000 KRW will be eligible for a 30% tax credit, which is twice the rate for donations to general areas. However, the donation must be made within three months from the date the area is declared a special disaster area. The donation limit for hometown donations will be raised from 5 million KRW to 20 million KRW.

Companies using the batch provision service for simplified data can register the list of employees to receive the data on Hometax by January 10 next year. Then, for employees who have given consent by January 15, the company can download the data in bulk on the selected date.

For companies wishing to expedite the year-end tax settlement using the data provided when the simplified service opens, the data can be downloaded on January 17. For those wishing to report using the final data reflecting additional submissions, the data can be downloaded in bulk on January 20.

Companies without their own year-end tax settlement program can register basic year-end tax data, such as each employee's total salary, through the “Convenient Year-End Tax Settlement” service provided by the National Tax Service. Employees can fill out and submit their deduction declaration forms to the company starting January 18 next year.