Effective 24 July 2026, Notice 26-017 introduces a comprehensive tax-welfare integration package designed to stabilize low-income household finances through targeted tax reductions and direct transfer synergies. The measure expands the eligibility ceiling for the child-care tax credit, increases the earned-income tax credit percentage for marginal workers, and coordinates with the National Basic Livelihood Security System to prevent double-dipping. Additionally, the NTS will issue one-time tax rebates of up to 500,000 KRW to households receiving the livelihood-benefit, provided that annual income does not exceed 120 percent of the median household income threshold. The program requires quarterly reporting by designated community welfare centers and aims to lift an estimated 2.3 million individuals above the relative poverty line within the fiscal year.
Key Takeaways
- Expanded Eligibility and Increased Credits: The child-care tax credit now covers caregivers working reduced hours, and the earned-income tax credit rate rises from 12 percent to 15 percent for individuals earning between 50 percent and 80 percent of the national median income.
- Integrated Welfare-Coordination: Tax refunds will be automatically cross-verified with basic-livelihood benefit rolls, reducing application friction for recipients and enabling faster disbursement of supplementary support.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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