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  • busanite
  • Adventurer

    • 55

    • November 22, 2010, 08:12:58 am
    • Busan
Less spending = Higher taxes?
« on: March 07, 2021, 04:40:46 pm »
Living with COVID nowadays has me staying home more often and buying fewer things. I don't expect to spend more this year than I did in 2020. Will this increase my tax burden when it's time to pay in 2022?

TIA


  • Kyndo
  • Moderator LVL 1

    • 2202

    • March 03, 2011, 09:45:24 am
    • Gyeongsangbuk-do
Re: Less spending = Higher taxes?
« Reply #1 on: March 08, 2021, 08:23:08 am »
A bit. Most spending on a debit/credit card can be deducted in part from your taxes. You might end up paying an extra 100,000 or so, depending on how much or how little you spend.


  • DocH
  • Veteran

    • 111

    • March 01, 2021, 11:25:39 am
    • pub
Re: Less spending = Higher taxes?
« Reply #2 on: March 09, 2021, 05:10:27 am »
A bit. Most spending on a debit/credit card can be deducted in part from your taxes. You might end up paying an extra 100,000 or so, depending on how much or how little you spend.

so...NOT spending money is increasing taxes? 

Phuck sakes....I hate this world.


  • Kyndo
  • Moderator LVL 1

    • 2202

    • March 03, 2011, 09:45:24 am
    • Gyeongsangbuk-do
Re: Less spending = Higher taxes?
« Reply #3 on: March 09, 2021, 06:52:16 am »
I think this policy was originally put in place as an incentive for Koreans to spend their money rather than saving it all. At one point, lack of domestic spending was doing quite the number on the economy. I'm honestly not sure why it's still in place.

  In any case, make sure that whatever spending you actually do, you use your Korean debit/credit card: only money spent with a card counts towards the deduction (unless you collect, keep, tally, and submit all your receipts, but that just seems like wayyyy too much effort).


Re: Less spending = Higher taxes?
« Reply #4 on: March 09, 2021, 07:35:11 am »
I don't use a card for payments and only use cash but you can still get the same tax benefits.  A number of years ago my co-teacher set something up for me.  When I pay cash at shops, supermarkets, restaurants, train tickets (not often these days), flights (booked through a Korean travel agency - again not this year!), most places when I remember (not street markets etc), I enter my 현금 영수증 번호 (cash receipt number) and this is used for my purchases and affects my tax payment. 

This cash receipt number is my phone number and I have to enter it at the checkout.  Actually I wrote out '현금 영수증 번호 and then my telephone number' on a card and show that to the person operating the till.  Often they enter it for me (more so in pre-covid days). 


  • D.L.Orean
  • Super Waygook

    • 381

    • February 25, 2020, 09:34:41 am
Re: Less spending = Higher taxes?
« Reply #5 on: March 09, 2021, 07:35:26 am »
I think this policy was originally put in place as an incentive for Koreans to spend their money rather than saving it all. At one point, lack of domestic spending was doing quite the number on the economy. I'm honestly not sure why it's still in place.

  In any case, make sure that whatever spending you actually do, you use your Korean debit/credit card: only money spent with a card counts towards the deduction (unless you collect, keep, tally, and submit all your receipts, but that just seems like wayyyy too much effort).

Through registration you can use your phone number to have cash receipts automatically recorded. I believe there is also an option of a cash receipt card that can be swiped after paying in cash and the purchase will be recorded just as it would with a debit or credit card. Of course, why not just use the debit or credit card if you're going to bother with swiping a card.

Purchases with cash and debit card will offer slightly more tax deductions than those made with a credit card.


  • OnNut81
  • Hero of Waygookistan

    • 1991

    • April 01, 2011, 03:01:41 pm
    • Anyang
Re: Less spending = Higher taxes?
« Reply #6 on: March 09, 2021, 07:48:51 am »
I think this policy was originally put in place as an incentive for Koreans to spend their money rather than saving it all. At one point, lack of domestic spending was doing quite the number on the economy. I'm honestly not sure why it's still in place.

  In any case, make sure that whatever spending you actually do, you use your Korean debit/credit card: only money spent with a card counts towards the deduction (unless you collect, keep, tally, and submit all your receipts, but that just seems like wayyyy too much effort).

I had heard that a big reason for it was the huge number of businesses that just did cash transactions to avoid a record of all their sales, thus avoiding taxes.  So many of those smaller businesses would never ring up their sales or issue you a receipt.  So, the assumption was just because you don't have a record of those purchases doesn't mean you didn't make them.  So, they assumed you were just doing cash transactions.  You were rewarded for having receipts.  The Korean government knew the mindset of its citizens.  Now, no one wants to participate in the cash only transactions because it benefits them at tax time to have proof of payment.  That's why if you pay cash you can also give them the the National Tax Card to run through. 

When I lived in Taiwan they came up with an ingenious method to get people to insist on receipts.  Each receipt had a lottery number and each month in the paper they would print out a load of numbers for various cash prizes.  We would save all of our receipts and go through the paper each month.  Won 1000NTD a few times.  There were much bigger prizes as well so if you weren't giving a receipt you'd lose customers.  People wanted those things. 


  • hangook77
  • The Legend

    • 3195

    • September 14, 2017, 09:10:12 am
    • Near Busan
Re: Less spending = Higher taxes?
« Reply #7 on: March 09, 2021, 01:40:57 pm »
It does seem like they are doing a tax grab of some sort.  I have more deductions through out the year and always end up owing money at the end of the year.  Never use to owe anything.  I sometimes got back 30,000 won or something small.  Now, I am hit with around 350,000 won to pay.  My Feb pay always takes a hit.  Ridiculous. 


Re: Less spending = Higher taxes?
« Reply #8 on: March 09, 2021, 04:44:58 pm »
Remember all that stimulus money they didnít want foreigners collecting, this is the reason for tax increase.