On top of this head won-tax borrowing, during the 2015 the brand new Korean authorities produced the next refundable tax credit, the kid proper care income tax borrowing, getting reduced-money households that have established pupils
Plus the kid income tax allotment and income tax borrowing from the bank for the kids, the Korean bodies has the benefit of brand new acquired-tax borrowing – an excellent refundable/non-wastable function-looked at from inside the-work tax borrowing targeted at low-income home. When first introduced within the 2008, the financing is readily available simply to bad property which have youngsters, in the event in 2011, qualifications is broadened to a different house sizes, such as people without pupils and single men and women aged 31 or over. Inside the 2018, this new annual earnings thresholds varied off KRW 13 000 one hundred thousand (USD 11 818, or about twenty seven.5% of 2018 AW) to possess just one-person household to help you KRW 25 one hundred thousand 100000 (USD 22 727, or around 52.8% of one’s 2018 AW) having a twin-earner family, on resource worth threshold set in the KRW 140 100000 100 (USD 127 273). The actual numbers paid off of the earned-income tax credit try tapering with money, and just have are very different from the home sorts of. For the 2018, the most number offered was basically KRW 850 one hundred thousand (USD 773, or 1.8% of one’s 2018 AW) annually to possess one-person domestic, and you will KRW dos five-hundred 100000 a year (USD 2 273, otherwise 5.3% of your own 2018 AW) to own a twin-earner family (Federal Income tax Provider, 2019) . In the 2017, just under 1 700 100 home gotten the fresh gained-tax credit (National Taxation Analytics, 2018) .
Importantly, factor improvements inside the 2019 will discover the fresh new visited and you can range out-of the latest gained-income tax borrowing from the bank build considerably.