"Expansion of Monthly Rent Tax Credit"...Jeong Taeho of Ruling Party Proposes "Two Bills for Easing Monthly Rent Burden"

Annual Gross Salary Cap Raised from 80 to 90 Million Won
Deductible Monthly Rent Limit Increased to 15 Million Won Per Year

In order to alleviate monthly rent burdens for workers without homes, the so-called “Two Bills for Easing Monthly Rent Burden”—legislation to expand the range and limit of monthly rent tax deductions and raise the deduction rate for youth—have been introduced in the National Assembly.

Jeong Taeho, member of the Democratic Party of Korea. Photo by Hyunmin Kim kimhyun81@

Jeong Taeho, member of the Democratic Party of Korea, announced on the 23rd that he had sponsored a proposed amendment to the “Restriction of Special Taxation Act,” which expands the income requirements and deduction limits for monthly rent tax credits, along with a proposed amendment to the “Income Tax Act” that would allow unused monthly rent tax deduction amounts for that year to be carried forward for up to 10 years.

The amendments would increase the total annual salary threshold for workers eligible for monthly rent tax deductions from the current 80 million won or less to 90 million won or less, and raise the comprehensive income threshold from 70 million won or less to 80 million won or less. The annual deduction ceiling for monthly rent would also be expanded from 10 million won to 15 million won.

The deduction rate for young people’s monthly rent would be raised to 17%. In addition, if the monthly rent tax deduction exceeds the calculated income tax for the year and cannot be fully applied, the unused amount could be carried over for tax credit for up to 10 years in subsequent tax periods.

Currently, even if the calculated tax amount is too low to use the entire monthly rent tax deduction, the remaining balance cannot be carried forward to the following year. Jeong stated that the proposed amendments are expected to improve the utilization of this system by low-income, non-homeowner workers.

Jeong said, “As monthly rent prices rise, the housing cost burden on households without homes and on young people grows, but low-income workers sometimes cannot fully benefit from the monthly rent tax deduction. By making the income thresholds and deduction limits more realistic and by allowing unused deduction amounts to be carried forward, we will ensure greater support for those in need.”

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