Donation Tax Credit

Q: Does a donation to an overseas charity qualify?

In principle, only donations to organizations officially recognized as designated donee organizations under Korean law qualify. Donations to foreign charities generally do not, absent a specific exception.

Q: Does an in-kind donation (goods, not cash) count?

Yes — non-cash donations qualify too, valued at fair market value, as long as you receive a proper donation receipt.

Different donation types get different credit rates. Political donations get a 100/110 credit up to KRW 100,000 and 15% above that (25% above KRW 30 million). Statutory donations, employee stock ownership association donations, and designated (general) donations get 15% (30% for the portion over KRW 10 million).

Donations to religious organizations are classified as designated donations but are capped separately at 10% of wage income (versus 30% for other designated donations, or 100% for statutory donations).

Donation types at a glance

Statutory donations (government, disaster relief, etc.) — capped at 100% of wage income

Employee stock ownership association donations — capped at 30%

Designated (general) donations: welfare/cultural organizations — capped at 30%

Designated donations to religious organizations — separately capped at 10%

Excess donations aren't wasted

Donations exceeding the cap for a given year don't disappear — they can be carried forward for up to 10 years. If you've made large donations over several years, check each year that the carried-forward amount is correctly reflected in your Hometax donation records.

Frequently Asked Questions

Does a donation to an overseas charity qualify?

Does an in-kind donation (goods, not cash) count?

Donation Tax Credit

Donation types at a glance

Frequently Asked Questions

Related Topics

Education Expense Tax Credit

Cash Receipt and Card Usage Income Deduction

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