Injoys
Donations made by a spouse or dependent can also be deducted through an employee's year-end tax settlement. However, the family member must meet the income and other requirements for basic deduction eligibility, and the donation must be an eligible type. Political contributions and employee stock ownership association donations can be deducted only by the person who made the donation.
The tax credit rates and limits in this article are based on donations made in 2024. For other tax years, check Article 59-4 of the Income Tax Act on the Korean Law Information Center and guidance from the National Tax Service.
Requirements for Deducting a Dependent's Donations
A donation is not deductible simply because it was made by a dependent. You must first confirm whether that family member qualifies for the employee's basic deduction. The income requirement applies, but the basic deduction's age limit does not apply to donation tax credits. The exclusion of the age limit applies to filings made on or after January 1, 2017.
In principle, the basic deduction income threshold is total annual income of at most 1 million won. If the person has only wage and salary income, check whether their total gross salary is at most 5 million won. Income and total gross salary are different amounts, so if the person has income other than salary, their annual income must be reviewed separately. A spouse, parents, and adult children should also be assessed based on their relationship to the employee and their respective income requirements.
Check whether a dependent qualifies for the basic deduction and avoid claiming the same donation twice.
Deductibility by Donation Type
Whether a donation made by a dependent can be deducted depends on the type of donation. As of 2024, donations made by dependents may be included under special donations and general donations. Statutory donations in previous guidance correspond to special donations, while designated donations correspond to general donations.
| Donation type | Amount donated by a dependent | Typical recipient or nature |
|---|---|---|
| Political contributions | Cannot be included in the employee's deduction | Political parties, supporters' associations, election commissions |
| Employee stock ownership association donations | Cannot be included in the employee's deduction | Donations to employee stock ownership associations |
| Special donations, formerly statutory donations | May be included if the requirements are met | Donations to the national government, local governments, and others |
| General donations, formerly designated donations | May be included if the requirements are met | Donations to social welfare organizations, religious organizations, and others that meet certain requirements |
Employee stock ownership association donations are also subject to separate requirements for the person who made the donation. You must check whether the person is a member of the relevant association. Do not determine the type solely from the recipient's name. Check the classification shown on the receipt.
2024 Tax Credit Rates and Limits
For donations made in 2024, the general donation tax credit rate is 15% when the eligible amount is at most 10 million won. A rate of 30% applies to the portion more than 10 million won and at most 30 million won. In 2024, a special rate of 40% applies to the portion more than 30 million won. Political contributions are calculated under separate rules and should not simply be added to amounts subject to these rates.
The limits must also be checked by donation type. The limit for an employee's special donations is based on the employee's entire earned income amount. The limit for general donations is calculated differently depending on whether donations to religious organizations are included. Simply applying 10% of earned income to donations to religious organizations and 30% to other general donations, then adding the results, may produce a figure that differs from the actual limit.
