Understanding financial terms is crucial when living or working in Korea, especially during tax season. This guide explains the essential Korean term for “income deduction” and related vocabulary used in the context of Korean taxes and year-end tax settlement (연말정산).
Table Of Content
Core Expression
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Expression: 소득공제
Pronunciation: so-deuk-gong-je
Meaning: Income Deduction (The amount subtracted from gross income when calculating taxable income)
Basic Tax Terminology
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Expression: 세금
Pronunciation: se-geum
Meaning: Tax -
Expression: 연말정산
Pronunciation: yeon-mal-jeong-san
Meaning: Year-end tax settlement -
Expression: 근로소득
Pronunciation: geul-lo-so-deuk
Meaning: Earned income / Labor income -
Expression: 세액공제
Pronunciation: se-aek-gong-je
Meaning: Tax credit (Deduction directly from tax owed) -
Expression: 과세표준
Pronunciation: gwa-se-pyo-jun
Meaning: Tax base / Taxable income base -
Expression: 원천징수
Pronunciation: won-cheon-jing-su
Meaning: Withholding tax -
Expression: 영수증
Pronunciation: yeong-su-jeung
Meaning: Receipt -
Expression: 공제 항목
Pronunciation: gong-je hang-mok
Meaning: Deduction item -
Expression: 납세자
Pronunciation: nap-se-ja
Meaning: Taxpayer -
Expression: 국세청
Pronunciation: guk-se-cheong
Meaning: National Tax Service (NTS) -
Expression: 환급금
Pronunciation: hwan-geup-geum
Meaning: Tax refund -
Expression: 추가 납부 세액
Pronunciation: chu-ga nap-bu se-aek
Meaning: Additional tax payment amount
Asking About Income Deduction
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Expression: 소득공제는 어떻게 신청하나요?
Pronunciation: so-deuk-gong-je-neun eo-tteo-ke sin-cheong-ha-na-yo?
Meaning: How do I apply for income deduction? -
Expression: 어떤 항목들이 소득공제 대상인가요?
Pronunciation: eo-tteon hang-mok-deul-i so-deuk-gong-je dae-sang-in-ga-yo?
Meaning: Which items are eligible for income deduction? -
Expression: 소득공제 서류는 무엇이 필요한가요?
Pronunciation: so-deuk-gong-je seo-ryu-neun mu-eo-si pil-yo-han-ga-yo?
Meaning: What documents are needed for income deduction? -
Expression: 연말정산 소득공제 기간이 언제까지인가요?
Pronunciation: yeon-mal-jeong-san so-deuk-gong-je gi-gan-i eon-je-kka-ji-in-ga-yo?
Meaning: Until when is the period for year-end tax settlement income deduction? -
Expression: 제 소득공제 한도는 얼마인가요?
Pronunciation: je so-deuk-gong-je han-do-neun eol-ma-in-ga-yo?
Meaning: What is my income deduction limit? -
Expression: 이 영수증으로 소득공제를 받을 수 있나요?
Pronunciation: i yeong-su-jeung-eu-ro so-deuk-gong-je-reul ba-deul su in-na-yo?
Meaning: Can I get an income deduction with this receipt? -
Expression: 소득공제 신청 방법을 알려주세요.
Pronunciation: so-deuk-gong-je sin-cheong bang-beo-beul al-lyeo-ju-se-yo.
Meaning: Please tell me how to apply for income deduction. -
Expression: 작년 소득공제 내역을 확인할 수 있나요?
Pronunciation: jang-nyeon so-deuk-gong-je nae-yeo-geul hwa-gin-hal su in-na-yo?
Meaning: Can I check my income deduction details from last year? -
Expression: 소득공제와 세액공제의 차이가 무엇인가요?
Pronunciation: so-deuk-gong-je-wa se-aek-gong-je-ui cha-i-ga mu-eo-sin-ga-yo?
Meaning: What is the difference between income deduction and tax credit? -
Expression: 홈택스에서 소득공제 자료를 조회할 수 있습니다.
Pronunciation: hom-taek-seu-e-seo so-deuk-gong-je ja-ryo-reul jo-hoe-hal su it-seum-ni-da.
Meaning: You can look up income deduction data on Hometax (the NTS online portal).
Discussing Specific Deduction Items
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Expression: 신용카드 사용 금액도 소득공제가 되나요?
Pronunciation: sin-yong-ka-deu sa-yong geu-maek-do so-deuk-gong-je-ga doe-na-yo?
Meaning: Is the amount spent on credit cards also eligible for income deduction? -
Expression: 의료비 지출은 소득공제 항목입니다.
Pronunciation: ui-ryo-bi ji-chul-eun so-deuk-gong-je hang-mo-gim-ni-da.
Meaning: Medical expenses are an income deduction item. -
Expression: 교육비도 소득공제를 받을 수 있습니다.
Pronunciation: gyo-yuk-bi-do so-deuk-gong-je-reul ba-deul su it-seum-ni-da.
Meaning: Education expenses can also receive income deduction. -
Expression: 주택자금 관련 소득공제가 있나요?
Pronunciation: ju-taek-ja-geum gwal-lyeon so-deuk-gong-je-ga in-na-yo?
Meaning: Are there income deductions related to housing funds? -
Expression: 기부금 영수증을 챙겨서 소득공제를 받으세요.
Pronunciation: gi-bu-geum yeong-su-jeung-eul chaeng-gyeo-seo so-deuk-gong-je-reul ba-deu-se-yo.
Meaning: Make sure to get your donation receipt to receive income deduction. -
Expression: 보험료 납입액도 소득공제 대상입니다.
Pronunciation: bo-heom-nyo na-bi-baek-do so-deuk-gong-je dae-sang-im-ni-da.
Meaning: Insurance premium payments are also eligible for income deduction. -
Expression: 체크카드 사용액은 신용카드보다 공제율이 높습니다.
Pronunciation: che-keu-ka-deu sa-yong-aek-eun sin-yong-ka-deu-bo-da gong-je-yul-i nop-seum-ni-da.
Meaning: The deduction rate for debit card usage is higher than for credit cards. -
Expression: 부양가족 인적공제를 신청했습니다.
Pronunciation: bu-yang-ga-jok in-jeok-gong-je-reul sin-cheong-haet-seum-ni-da.
Meaning: I applied for the personal deduction for dependents. -
Expression: 연금저축 계좌 납입액도 소득공제가 가능합니다.
Pronunciation: yeon-geum-jeo-chuk gye-jwa na-bi-baek-do so-deuk-gong-je-ga ga-neung-ham-ni-da.
Meaning: Contributions to a pension savings account are also eligible for income deduction. -
Expression: 월세액도 일정 조건 하에 세액공제를 받을 수 있습니다.
Pronunciation: wol-se-aek-do il-jeong jo-geon ha-e se-aek-gong-je-reul ba-deul su it-seum-ni-da.
Meaning: Monthly rent payments can also receive a tax credit under certain conditions. (Note: Often a tax credit, 세액공제, not income deduction, 소득공제, but frequently discussed together).
Korean Culture Notes
Year-End Tax Settlement (연말정산): In Korea, the 연말정산 (yeon-mal-jeong-san) process, typically occurring between January and February, is a major annual event for salaried workers. It involves calculating the final income tax liability for the previous year by applying various income deductions (소득공제) and tax credits (세액공제) to the income already taxed via withholding (원천징수). This often results in either a tax refund (환급금) or an additional tax payment (추가 납부 세액).
Importance of Receipts: Collecting receipts (영수증 – yeong-su-jeung) for eligible expenses like medical bills, education fees, and donations is crucial for maximizing deductions during 연말정산. While many deductions are now automatically tracked via the National Tax Service’s online portal (Hometax), some still require manual submission of proof.
Common Deduction Items: Popular deduction items include spending via credit/debit cards (with different deduction rates), insurance premiums, medical expenses exceeding a certain percentage of income, education costs for dependents, housing loan interest payments, pension contributions, and donations.
Hometax Portal: The National Tax Service (NTS) operates a comprehensive online portal called 홈택스 (hom-taek-seu) where taxpayers can check their income and deduction data, submit their year-end tax settlement reports, and handle various other tax-related matters. Familiarity with this system is highly beneficial for employees in Korea.
Income Deduction vs. Tax Credit: It’s important to understand the difference. 소득공제 (so-deuk-gong-je) reduces your taxable income base, while 세액공제 (se-aek-gong-je) directly reduces the amount of tax you owe. Both are important parts of the 연말정산 process.
Real Conversation Example
Situation: Two colleagues, Minjun (A) and Sora (B), are discussing the upcoming year-end tax settlement.
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Expression: A: 소라 씨, 연말정산 준비는 잘 되어가요? 소득공제 자료는 다 챙겼어요?
Pronunciation: A: so-ra ssi, yeon-mal-jeong-san jun-bi-neun jal doe-eo-ga-yo? so-deuk-gong-je ja-ryo-neun da chaeng-gyeot-seo-yo?
Meaning: A: Sora, how is your preparation for the year-end tax settlement going? Did you gather all your income deduction documents? -
Expression: B: 아, 민준 씨. 네, 홈택스에서 대부분 확인했는데, 기부금 영수증은 따로 챙겨야 할 것 같아요. 민준 씨는요?
Pronunciation: B: a, min-jun ssi. ne, hom-taek-seu-e-seo dae-bu-bun hwa-gin-haet-neun-de, gi-bu-geum yeong-su-jeung-eun tta-ro chaeng-gyeo-ya hal geot ga-ta-yo. min-jun ssi-neun-yo?
Meaning: B: Oh, Minjun. Yes, I checked most of it on Hometax, but I think I need to get the donation receipt separately. How about you? -
Expression: A: 저는 작년에 부모님 의료비 지출이 많아서 그 서류를 준비하고 있어요. 소득공제 받으려면 꼭 필요하더라고요.
Pronunciation: A: jeo-neun jang-nyeon-e bu-mo-nim ui-ryo-bi ji-chul-i ma-na-seo geu seo-ryu-reul jun-bi-ha-go i-sseo-yo. so-deuk-gong-je ba-deu-ryeo-myeon kkok pil-yo-ha-deo-ra-go-yo.
Meaning: A: I’m preparing the documents for my parents’ medical expenses from last year, as there were quite a lot. They are essential to get the income deduction. -
Expression: B: 맞아요. 신용카드 소득공제율보다 체크카드 공제율이 더 높다고 하던데, 올해는 체크카드를 더 많이 써야겠어요.
Pronunciation: B: ma-ja-yo. sin-yong-ka-deu so-deuk-gong-je-yul-bo-da che-keu-ka-deu gong-je-yul-i deo nop-da-go ha-deon-de, ol-hae-neun che-keu-ka-deu-reul deo ma-ni sseo-ya-get-seo-yo.
Meaning: B: That’s right. I heard the deduction rate for debit cards is higher than for credit cards, so I should use my debit card more this year. -
Expression: A: 네, 저도 그렇게 하려고요. 연말정산 잘해서 환급금 많이 받으면 좋겠네요!
Pronunciation: A: ne, jeo-do geu-reo-ke ha-ryeo-go-yo. yeon-mal-jeong-san jal-hae-seo hwan-geup-geum ma-ni ba-deu-myeon jo-ken-ne-yo!
Meaning: A: Yes, I plan to do that too. I hope we do well on the year-end tax settlement and get a big refund!
Practice Tips
Understanding terms like 소득공제 is really helpful if you’re working in Korea! Try reviewing the vocabulary list and practice saying the phrases aloud~ Pay attention to the pronunciation, especially the difference between 소득공제 (so-deuk-gong-je) and 세액공제 (se-aek-gong-je). If you have Korean colleagues, you might hear these terms around January or February. Don’t be afraid to ask questions using the phrases you learned today! Good luck with your studies!
