Tax exemption on interest and dividends for ‘youth drug accounts’ for income of 75 million or less earned : The International Newspaper

Starting this year, young people between the ages of 19 and 34 with an income of less than 75 million won will receive tax-free benefits on interest and dividend income when they sign up for a ‘Youth Account’. The Youth Leap Account is a policy-like financial product that supports youth asset formation. It will be released next June.

The Ministry of Strategy and Finance announced on the 28th that the Special Taxation Restriction Act Enforcement Order will come into effect this year.

The Youth Leap Account is a financial policy promise for young people introduced by President Seok-yeol Yoon when he was elected. If a young person deposits between 400,000 and 700,000 won per month with a maturity of 5 years, the government deposits up to 6% as a matching subsidy in proportion to the amount paid, and interest and income are not dividend is taxed.

However, there is a slight difference between the matching government subsidy and the income threshold for tax exemption on interest and dividend income.

First of all, young people with an income of 60 million or less and a household income of 180% or less of the median income can receive a matching government subsidy according to the amount of the deposit. The tax-free threshold for interest and dividend income is less than 75 million earned in total salary or less than 63 million earned in worldwide income.

Young people with an income of less than 60 million and 180% of the median household income earned the matching government subsidy and tax exemption benefits, and young people with an income between 60 million earned and 75 million are eligible for a benefit -tax exempt payments only. without the equivalent of the government.

The tax-free payment limit is 8.4 million earned per year. However, if the account is withdrawn or closed during the mandatory subscription period, the tax rebate amount will also be collected. The government plans to launch a youth pop account product around June.