Duty-Free Purchases Now Exempt from Return When Flights Canceled

Travelers who purchase duty-free goods but cannot depart due to flight cancellations or natural disasters will no longer be required to return their purchases, even if the items are not taken abroad.

The Ministry of Economy and Finance announced the "2025 Tax Code Amendment Follow-up Enforcement Decree Revision" on Wednesday. Previously, when departures were canceled due to unavoidable circumstances such as natural disasters or flight cancellations, travelers were obligated to return duty-free items that could not be taken overseas. Going forward, exceptions to the return requirement will be recognized.

The government is also expanding mandatory cash receipt issuance requirements from 142 to 144 business categories, adding childcare facility operations such as playrooms and boarding house accommodations that provide meals and lodging.

Institutional reforms aimed at reducing inconvenience for taxpayers and businesses while preventing consumer harm are also being implemented. Korean schools and public interest corporations will no longer need to submit annual compliance reports, reducing their administrative burden. The National Tax Service will continue to monitor compliance.

When trademark infringement is suspected on low-value shipments from overseas, the customs clearance suspension process will be simplified, allowing decisions to be made once trademark holders or shippers submit supporting documentation. This measure is designed to more efficiently protect trademark rights related to overseas direct purchases.

Given that electronic filing for comprehensive income tax, corporate tax, and value-added tax has become well established, the tax credit for electronic filing will be reduced to half the current level: 10,000 won for income tax, 10,000 won for corporate tax, and 5,000 won for VAT.

To create a fair tax services market, tax accountants responsible for advertisements will be required to display their names, and will be prohibited from implying private relationships with tax officials or using terms such as "free" or "lowest price."

Reforms are also being made in areas closely related to daily life. The child tax credit amount applied during wage income withholding will be increased. Currently set at 12,500 won for one child, 29,160 won for two children, and 54,160 won for three or more children, these amounts will be raised to 20,830 won, 45,830 won, and 79,160 won respectively. The criteria for determining regular workers eligible for various tax credits will be unified at total wages of 80 million won or less.