Income Tax Deduction For Credit Card Use By 20 %

The transfer income tax for all newly-built houses except the luxury houses will be exempted for five years.

The income tax deduction for the credit card use by wage workers will expand from 10 percent to 20 percent. Previously, only 10 percent of the amount that exceeds 10 percent of total annual salary has been deducted from the income tax. And the yearly income tax deduction limit also enlarges from 3 million won to 5 million won.

The government reviewed and decided to pass the revised bill of the special tax exception law in a Cabinet Council over which President Kim Dae-Jung presided in Cheong Wa Dae.

According to the amended bill, those who construct and lot out the apartment plants to the actual demanders, or transfer them after leasing for over 5 years, will benefit the deduction of 50 percent of the transfer income tax or the special additional tax. And when the real estate investment company or the real estate investment company under the corporate restructuring earn or sell the real estate, the special additional tax, the acquisition tax, and the registration tax will be deducted.

And the Cabinet Council also passed the revised bill of community credit cooperatives law, which allows the Korean Federation of Community Credit Cooperatives to launch the credit card business, and the revised bill of the military service law, which allows a soldier in active service to transfer to the fire service.

Kim Young-Sik spear@donga.com