(1) Where a resident with wage and salary income (excluding a worker employed on a daily basis; hereafter the same shall apply in this Article) pays any of the following insurance premiums that shall be borne by a worker under the National Health Insurance Act, the Employment Insurance Act, or the Long-Term Care Insurance Act, the amount of such premiums shall be deducted from his/her wage and salary income for the relevant taxable period. <Amended by Act No. 12169, Jan. 1, 2014>1. and 2. Deleted. <by Act No. 12169, Jan. 1, 2014>
(2) and (3) Deleted. <by Act No. 12169, Jan. 1, 2014>
(4) Where a resident with wage and salary income, as the head (referring to a member of a household, if the head of a household is not entitled to deduction under this paragraph or paragraph (5) of this Article, or Article 87 (2) of the Restriction of Special Taxation Act, and including a foreigner as prescribed by Presidential Decree) of a household prescribed by Presidential Decree (hereafter referred to as "household" in this paragraph and paragraph (5)) with no house owned by the household as at the end of the taxable period, repays principal of the house lease loan specified by Presidential Decree and pays interest thereon in order to lease a house not larger than the size specified by Presidential Decree (including officetels used for residence, houses, and land annexed to a house, but excluding houses and officetels where the area of the land annexed to a house or officetel exceeds the area computed by multiplying the area on which the building is built by the multiplying factor specified by Presidential Decree for each region), the amount equivalent to 40/100 of such amount shall be deducted from the amount of wage and salary income for the relevant taxable period: Provided, That, if the sum of the deductible amount and the amount under Article 87 (2) of the Restriction of Special Taxation Act exceeds four million won a year, such excess (hereafter referred to as “excess” in this paragraph) shall be deemed nil. <Amended by Act No. 11146, Jan. 1, 2012; Act No. 11611, Jan. 1, 2013; Act No. 12030, Aug. 13, 2013; Act No. 12169, Jan. 1, 2014; Act No. 12852, Dec. 23, 2014; Dec. 29, 2020; Dec. 31, 2022>1. and 2. Deleted. <by Act No. 12852, Dec. 23, 2014>
(5) Where a resident with wage and salary income, as the head of a household with no house or one house owned by the household (referring to a person with wage and salary income among the members of a household, if the head of a household is not entitled to deduction under this paragraph, paragraph (4) of this Article, or Article 87 (2) of the Restriction of Special Taxation Act, and including a foreigner as prescribed by Presidential Decree), has paid interest on the long-term mortgage loan specified by Presidential Decree (including a long-term mortgage loan assumed by acquiring a house; hereafter referred to as "long-term mortgage loan" in this paragraph and paragraph (6)) borrowed from a financial institution, etc. or the Housing and Urban Fund established under the Housing and Urban Fund Act by granting a mortgage over the house to acquire the house, if the assessed value of which under Article 99 (1) does not exceed 500 million won at the time of acquisition, the amount of interest paid for the relevant taxable period shall be deducted from wage and salary income for the relevant taxable period according to the following standards: Provided, That, if the sum of the amount deducted and the income deductions under paragraph (4) and Article 87 (2) of the Restriction of Special Taxation Act for general savings account for housing subscription exceeds five million won a year (applicable to a long-term mortgage loan repayable in at least 15 years; hereafter referred to as "maximum deduction limit" in this paragraph and paragraph (6)), such excess shall be deemed nil: <Amended by Act No. 11146, Jan. 1, 2012; Act No. 12030, Aug. 13, 2013; Act No. 12169, Jan. 1, 2014; Act No. 12852, Dec. 23, 2014; Act No. 12989, Jan. 6, 2015; Act No. 13796, Jan. 19, 2016; Act No. 16104, Dec. 31, 2018; Dec. 29, 2020>
1. Whether a resident is the head of a household shall be determined according to his/her status at the end of the taxable period;
2. This paragraph shall not apply where a resident owns at least two houses, including houses owned by members of his/her household, at the end of the taxable period;
3. This paragraph shall apply to the head of a household, regardless of whether he/she actually resides therein, or to a resident who is not the head of a household, only where he/she actually resides therein;
4. Where the head of a household with no house owned by it obtains the right to acquire a house under construction (hereafter referred to as "right to buy a house" in this subparagraph) with approval of the relevant project plan under the Housing Act (including a house acquired by a member of a housing association under the Housing Act or a member of an improvement association under the Act on the Improvement of Urban Areas and Residential Environments; hereafter the same shall apply in this subparagraph), if the price for the right, defined by Presidential Decree, does not exceed 500 million won, and borrows a loan from a financial company or from the Housing and Urban Fund established under the Housing and Urban Fund Act (including where the conditions of borrowing of the loan are amended before the completion of such house to convert the loan to a long-term mortgage loan when such house is completed) in order to acquire the house on condition that the loan shall be converted to a long-term mortgage loan at the time the house is completed, such loan shall be deemed a long-term mortgage loan from the date of borrowing the loan (referring to the date of amendment, if the conditions of borrowing the loan are amended) until the registration date of the preservation of ownership of the house: Provided, That the foregoing shall not apply during the taxable period in which a resident possesses rights to buy at least two houses simultaneously;
5. Where a resident borrows a loan before the individual house price or the multi-family house price is officially announced under the Act on the Public Announcement of Real Estate Values, the initial price officially announced under the same Act after the date of borrowing the loan shall be deemed the assessed value of the relevant house.
(6) Notwithstanding the proviso to paragraph (5), the main sentence of paragraph (5) shall apply to a long-term mortgage loan by applying any of the following amounts to the long-term mortgage loan in lieu of five million won a year: <Newly Inserted by Act No. 12852, Dec. 23, 2014>
1. Where interest on a long-term mortgage loan repayable in at least 15 years is paid at the fixed interest rate specified by Presidential Decree (hereafter referred to as "fixed interest rate" in this paragraph) and the loan is repaid in installments with no grace period as specified by Presidential Decree (hereafter referred to as "installments with on grace period" in this paragraph): 18 million won;
2. Where interest on a long-term mortgage loan repayable in at least 15 years is paid at the fixed interest rate or where the loan is repaid in installments with no grace period: 15 million won;
3. Where interest on a long-term mortgage loan repayable in at least 10 years is paid at the fixed interest rate or where the loan is repaid in installments with no grace period: 3 million won.
(7) Deleted. <by Act No. 12169, Jan. 1, 2014>
(8) Deductions under paragraphs (1), (4), and (5) shall apply where the relevant resident files an application therefor, as prescribed by Presidential Decree, and if such deductions exceed the resident’s global income subject to aggregate taxation for the relevant taxable period, such excess shall be deemed nil. <Amended by Act No. 11146, Jan. 1, 2012; Act No. 12169, Jan. 1, 2014>1. and 2. Deleted. <by Act No. 12169, Jan. 1, 2014>
(9) Deleted. <by Act No. 12169, Jan. 1, 2014>
(10) Deductions under paragraphs (1), (4), (5), and (8) shall be referred to as "special deductions." <Amended by Act No. 12169, Jan. 1, 2014>
(11) Other matters necessary for special income deductions shall be prescribed by Presidential Decree. <Amended by Act No. 12169, Jan. 1, 2014>[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]