Starting next year, the tax exemption limit for childbirth and childcare expenses will be expanded from 200,000 won per month to 200,000 won per child per month. Additionally, art and physical education academy fees for children in the second grade of elementary school or younger, or under the age of nine, will be included in the education tax credit. Liquid electronic cigarettes will also be regulated as tobacco, and regional doctor systems will be introduced.
The Ministry of Government Legislation announced on the 17th that it had approved 35 legislative bills passed by the National Assembly at the Cabinet meeting on the 16th. Of the 35 bills approved, 16 are budget-related bills, and the remaining 19 are general legislative bills. The Income Tax Act has strengthened tax support for childbirth and childcare, and the Corporate Tax Act has increased corporate tax rates by 1%p according to the taxpayer’s ability to pay.
The Restriction of Special Taxation Act includes provisions on the separate taxation of dividend income. Dividend income received from high-dividend companies by residents will be separately taxed at rates ranging from 14% to 30%, without being included in the comprehensive income tax base. Additionally, spouses with different addresses from the head of the household will also be eligible for monthly rent tax credits.
The amended Tobacco Business Act expands the definition of tobacco to include products made from tobacco leaves or nicotine, thereby including liquid electronic cigarettes. The regional doctor system aims to address the imbalance in medical personnel supply and medical disparities between regions, and legal grounds for telemedicine have also been established.