Pensions subject for income tax deduction

All the premiums for public pensions, including the national pension, will be the subjects for income tax deduction for the year-end settlement of taxes.

The labor-management-government committee, chaired by Chang Young-Chul, voted to approve a taxation system reform plan to that effect in its standing committee meeting yesterday.

The reform plan was forwarded by the economic and social affairs subcommittee.

According to the plan, income tax will be deducted on premiums of all public funds and instead taxes will be levied on pension income.

The reform plan features the raise of the upper limit of the amount of medical expenses to be exempted.

It also seeks to correct the system of the standard income rate in order to raise the rate of grasping the income of self-employed people and to establish the system for taxation based on report through written records.

The new tax system will be implemented with the tenure of the incumbent government, the committee said. The committee plans to approve it in its plenary session after the standing committee deliberates on it.