Tax

Income Tax Reduction for Young Employees of Small and Medium Enterprises (중소기업 취업 청년 소득세 감면): How to Apply, Amount & Eligibility (2026)

90% reduction in earned income tax, up to KRW 2 million per year, for 5 years (youth ages 15-34)

This page is a translation of the Korean original and is for reference only. The official Korean guidance is the authoritative source for amounts and conditions, so be sure to confirm on the official website before applying. View Korean original (한국어)

Benefit: Young people employed at SMEs (ages 15-34, extended by up to 6 years of military service) get 90% of earned income tax reduced, up to KRW 2 million per year, for 5 years. The worker must submit a reduction application form to the company to apply (not automatic). 2026 tax revision proposal (before National Assembly review): for local SMEs, reduction period up to 10 years and application deadline extended to the end of 2029.
Who is eligible: Workers aged 15-34 employed at SMEs (in eligible industries), for 5 years from the date of employment.
When to apply: Apply when you join the company or during year-end tax settlement.
How to apply: Submit the income tax reduction application form to your employer (withholding); if missed, file a refund claim on HomeTax (홈택스). https://www.hometax.go.kr
Important notes: If missed, file a refund claim within 5 years after the statutory filing deadline
Note: Preferential local areas are scheduled for announcement by the Ministry of the Interior and Safety in October 2026, with implementation planned for 2027 (not finalized). Missed applications can be corrected by a refund claim (5 years).

Go to the official guide →

Based on official sources as of 2026년 10월. Amounts and requirements may change, so please confirm with the official guide before applying.

Frequently asked questions

Income Tax Reduction for Young Employees of Small and Medium Enterprises (중소기업 취업 청년 소득세 감면): who can receive it?

Workers aged 15-34 employed at SMEs (in eligible industries), for 5 years from the date of employment.

Income Tax Reduction for Young Employees of Small and Medium Enterprises (중소기업 취업 청년 소득세 감면): how do I apply?

Submit the income tax reduction application form to your employer (withholding); if missed, file a refund claim on HomeTax (홈택스). https://www.hometax.go.kr

Income Tax Reduction for Young Employees of Small and Medium Enterprises (중소기업 취업 청년 소득세 감면): how much will I receive?

Young people employed at SMEs (ages 15-34, extended by up to 6 years of military service) get 90% of earned income tax reduced, up to KRW 2 million per year, for 5 years. The worker must submit a reduction application form to the company to apply (not automatic). 2026 tax revision proposal (before National Assembly review): for local SMEs, reduction period up to 10 years and application deadline extended to the end of 2029.

Income Tax Reduction for Young Employees of Small and Medium Enterprises (중소기업 취업 청년 소득세 감면): when can I apply?

Apply when you join the company or during year-end tax settlement.