During the May tax filing season for comprehensive income tax in Korea, you can leverage tax points to get discounts on purchases. These tax points, verifiable on the Hometax platform, are unused points from previous tax filings and are particularly useful for buying small and medium-sized business products at a lower cost.
Is Filing Comprehensive Income Tax Complicated? A 2026 Guide
Filing your comprehensive income tax in May doesn't have to be daunting. The Korean Hometax system simplifies the process by auto-filling much of your tax return. Once you log in, your income details from previous employers or business registrations are often pre-populated. Information from your year-end tax settlement is also imported, requiring you to only add details for dependents. While data for pension accounts, insurance, medical expenses, education costs, and credit card usage typically syncs automatically, you'll need to manually upload supporting documents for charitable donations. After entering all information, your final tax amount (결정세액) will be calculated. If this amount is negative, you're eligible for a refund. It's also advisable to file your local income tax return immediately after completing your comprehensive income tax filing.
What Are Tax Points and How Do You Check Them?
Tax points are essentially loyalty points awarded to taxpayers who consistently pay their taxes on time. You can check your current tax point balance by logging into the Hometax website and navigating to the 'My Hometax' section. Many people are surprised to find they have accumulated points they weren't aware of, and failing to check means missing out on potential benefits. For individuals with modest incomes, utilizing these points can offer a tangible way to reduce their tax burden. These points are primarily redeemable for discounts on products sold through a dedicated online mall, often featuring goods from small and medium-sized Korean businesses.
Where and How Can You Use Your Tax Points?
Your tax points can be redeemed through the specialized 'Tax Point Shopping Mall.' This online platform offers a variety of products, with a significant selection from small and medium-sized Korean enterprises. A key advantage is that prices here are often lower than on mainstream e-commerce sites, and sometimes even shipping fees are waived or discounted. While the product range might not be as extensive as larger retailers, it presents a great opportunity to purchase needed items or explore new products at a more affordable price. By using your points, you not only save money but also contribute to supporting smaller businesses.
What Should You Watch Out for When Using Tax Points?
While tax points offer a valuable perk, there are a few things to keep in mind. Firstly, their usability is restricted, primarily to the dedicated Tax Point Shopping Mall; they generally cannot be used at regular online or offline stores. Secondly, be mindful of the points' expiration date. Points may expire after a certain period, so it's wise to regularly check your balance and plan your purchases accordingly. Lastly, avoid the temptation to make unnecessary purchases just to use up your points. It's best to use them for items you genuinely need, as impulse buying could negate the savings. Creating a shopping list and sticking to a budget is a good practice when redeeming points.
Don't forget to check and use your tax points after filing your comprehensive income tax!
