Even if you don’t use cash, you are obliged to ask for receipts in life. You can apply for a dedicated card as proof of business expenses or use the application/submission menu above to register an existing credit or debit card. .
In the case of corporations, unlike individual businesses, the card is automatically registered, so it doesn’t matter, but you must log in to register separately, and both business and personal certificates are possible. 현금영수증 카드 등록
You can make an exclusive application on the Cash Receipt Card Application section, and you can use the existing other card registration to insert a credit or debit card and use it as proof of business expenses.
Even if you log in with a personal authentication certificate at the top, your business registration number and business name are confirmed, and you can enter through the card number registration on the right. 이베이스매뉴얼
You can put the name of the card together with the card number, but it is not a bad idea to classify them according to the amount of proof of expenditure for each department in which cash receipts need to be registered, even for individual business owners.
Finally, you can check whether the registration is correct by using the cash receipt registration inquiry.
In addition to exclusive, check, and credit card types, you can check and register additional requirements such as various cash receipt issuance system companies, and manage them through the card at once, rather than individually verifying it.
most common deductions
There are quite a few items that are included in the income deduction. You can get income deductions in quite a few areas, such as the amount of savings for housing subscription, earned income deduction, pension savings insurance premium, public transportation use, and traditional market use. Which of these is the most common? It is the amount used by credit card, debit card and cash receipt.
Credit card, debit card, and cash receipts are all included in the income deduction for year-end tax settlement. Some workers sometimes confuse tax credit with tax credit, but these three are included in income deduction, not tax credit.
In any case, since these items are directly related to ‘consumption’, one of the essential parts of our daily life, many questions arise. So today, I will write a post that briefly explains these three items and income deduction.
Deduction rate and limit by payment method (Standard)
First, let’s take a look at the income deduction rate for the amount used by payment method or place of use, such as credit card/debit card/traditional market. The deduction rate differs by means or use, but the gap is quite large, ranging from a minimum of 15% to a maximum of 40%.
[ Deduction rate by type/use ]
① Credit Card: 15%
② Check/prepaid card, cash receipt: 30%
③ Books, newspapers, performances, museums and art galleries: 30%
④ Traditional market and public transportation use: 40%
The amount subject to deduction will be deducted according to the deduction rate listed above for each payment method or place of use for the amount exceeding 25% of the worker’s total salary out of the amount spent by the worker during the year. In addition, the amount spent by the spouse or lineal ascendant and descendant registered as a dependent of the person is also included in the expenditure amount. However, it is excluded if you are not a dependent.
To explain, for example, if a worker with an annual salary of 60 million won wants to receive a deduction for his/her year-end tax settlement this year, only 25% of the 60 million won, or 15 million won, is subject to income deduction.
The following is the limit of deduction, and the limit of deduction varies depending on the conditions of earned income. The section will be divided into three sections: less than 70 million won, 70 million to 120 million won, and over 120 million won.
① 70 million or less
3 million won per year or 20% of total salary
Choose the lower of the two values
② More than 70 million won – less than 120 million won
250 million won per year
③ Workers exceeding 120 million won
2 million won per year
In addition, a limit of 1 million won for each item of traditional market, public transportation, and book air-fuel cost is added regardless of income level. In addition, if the amount of card use increases by 5% or more in 2021 compared to 2020, an additional limit of 1 million won is applied to the increase in income.
Deduction of check card and cash receipt
The workers have nothing to take care of.
Details of check card usage and issuance of cash receipts are rarely omitted. In particular, in the case of debit cards, almost 99% of them are without omissions because the credit card company is computerized, but cash receipts are sometimes omitted.
The reason for the omission may be a computer omission, or the business owner did not cut the receipt by mistake, or it was omitted because it was cut off as proof of expenditure rather than personal income deduction. I think it’s unavoidable because it’s something people do, but…
Anyway, it is usually the time when the year-end tax settlement is over when you discover this omission of cash receipts. I have never posted a separate request for corrections, but if you search on Naver, you will find many examples, so you should follow them after seeing them.
Credit card changes and exclusions
Oh, and there are changes related to credit card deduction in the year-end tax settlement for 2021 attributable to this year. In the previous section, I explained the income deduction rate and deduction limit by place of use and payment method in the previous section, but I will say it again.
If an employee’s credit card usage increases by 5% or more compared to the previous year (2020), an additional 10% of the increase will be deducted. The additional limit for deductions is 1 million won, so it doesn’t seem like a big difference, but it’s better than nothing.
And finally, there are quite a few payment types that are not included in the income deduction even if you pay with a credit card. I also remember buying my first car when I was a freshman, and I remember being embarrassed because I didn’t know if the cost of purchasing the car was not included.
① Amount used abroad
The amount used abroad is excluded.
② Abnormal amount of use
Tax evasion-related offenses may occur and are excluded.
③ Car purchase cost
When purchasing a new car, the payment amount is not included.
However, only when purchasing a used car, up to 10% of income is deductible.
④ Cost of purchasing securities
When using a gift certificate, cash receipts can be processed.
It is no longer included in credit card purchases.
⑤ utility bill
They are all included in the tax, so of course they are not included.
⑥ Insurance premium
It is not included when paying employment/health/national pension premiums.
⑦ Donation, monthly rent
It is subject to tax deduction, not income deduction.
Of course, there are other types besides these 7 types, but I decided that there would be no problem even if you are familiar with these types of things. If you need additional information about payment types that do not include credit card usage, we recommend that you do a search.
Change of cash receipt defense
How to register your card at a glance!
hello. This is MG, a company specializing in tax savings.
Payment in cash to consumers in stores, etc.
issued by the supplier to the consumer when received
A receipt is called a cash receipt.
The issuance of cash receipts is between consumers and business owners.
It is a means to understand the transaction facts.
In order to facilitate the issuance of cash receipts, the government
While expanding the business of issuing cash receipts
There are several tax incentives available.
In the case of a business that issues cash receipts
VAT on the issued amount including VAT
Tax deduction is possible at the time of filing, and in the case of consumers
Income deduction for year-end tax settlement for workers and business owners
You may be entitled to benefits such as input tax deductions.
In order for consumers to receive cash receipt benefits,
You need to register your cash receipt number in Hometax.
By entering the number when issuing a cash receipt
It is to make sure that the amount used is caught on the prize money.
The cash receipt is your mobile phone number
It is supposed to be registered, but due to the change of number
If you need to change the cash receipt number
Let’s see how to change it.
If you do not know how to register a cash receipt number
You can check it out in the post below.
To change the cash receipt number, go to Hometax.
Log in and log in with your credentials.
In the Cash Receipt Issuance Method of the Inquiry/Issue menu
Select Manage Consumer Issuance Method.
Cash Receipt Number Change Route:
Hometax Login > Inquiry/Issue > Cash Receipt >
Cash receipt issuance method > Consumer issuance method management
You must delete and change the number that was previously written
Enter the number you want, then click Edit
Changes to the cash receipt number will be reflected.
Ahead of the year-end tax settlement season, the 13th salary
I think a lot of people are preparing for it.
As many of the income deductions apply
In case of change of cash receipt number, proceed in advance
There shouldn’t be anything missing when you need it.
Also, at the bottom of the cash receipt number change
The debit card being used in the card number input field
If you register your number, you can receive cash receipts and income deductions.
Conveniently check the cash receipt of the registered card
It’s also good to know that you can do it.
Register up to 5 cash receipt check cards
If possible, enter the debit card number you are using
After entering, click Register to reflect.
The more you prepare in advance, the more benefits you will receive.
Year-end settlement, to lead to a pleasant refund
Find out about deductions in advance and get
Don’t miss out on tax benefits.