Chapter 1: The More You Know, the Less You Pay in Taxes

Taxes are a constant part of our lives.
There were this many types of taxes?
Confusing tax terms
I am a student and an honest taxpayer.
Do I have to pay taxes on my military salary? Tax-exempt and tax-exempt.
Tax increases vs. tax cuts: which is justice?

Chapter 2: Tax Knowledge for Office Workers

I received my first paycheck, how will taxes be calculated?
The close relationship between year-end tax settlement and comprehensive income tax filing
If your annual salary is 100 million won, how much tax will you pay?
Office workers are in trouble! Tips for getting a good year-end tax refund
Tax treatment when additional income is generated through a second job

Chapter 3: Tax Knowledge You Need to Know When Investing

Savings, funds? The foundation of financial management is taxes.
What financial products should tax-saving experts subscribe to?
Are there tax differences between domestic and foreign stock investments?
If you want to invest in Bitcoin, do it now: Bitcoin tax deferral
What is the difference between a pension savings account and pension insurance?

Chapter 4: Tax Knowledge You Need to Know When Trading Real Estate

Taxes you must know if you own real estate
How to avoid capital gains tax when moving
Tax-saving tips for capital gains that only those in the know know
If you own multiple homes, at least avoid the additional tax.
If I receive rental income, do I have to pay taxes unconditionally?

Chapter 5: Tax Knowledge for Retirees

Why retirement income tax is lower than earned income tax
What are the types of retirement pensions and what are the most advantageous methods?
How are national pensions and civil servant pensions taxed?
National Pension alone isn't enough! What happens to taxes if I receive a housing pension?
Will the allowance given by children also be taxed?

Chapter 6: Tax Knowledge to Know When Passing Down Property

Taxes you must know when passing on property
Techniques for Giving Real Estate to Children: Burdened Gifts and Low-Price Transfers
Various cases in which gift tax is imposed
Will I also be subject to an investigation into the source of funds?
10 Tips for Saving Inheritance and Gift Tax

Chapter 7: Tax Knowledge for Business Owners

3 Taxes You Must Know When Starting a Business
Which is more advantageous: individual business or corporate business?
Tax-saving tips for business owners that you won't regret not knowing
Is it okay to drive a Ferrari for business purposes?

The foundation of financial management is tax saving.
From office workers to business owners, retirees, and parents and children in need of gifts and inheritance.
Essential Tax Knowledge A to Z: Everything Everyone Needs to Know

When you receive your first paycheck, you are subject to 'earned income tax'. When you withdraw money from a savings account that you have been saving for a long time, you are subject to 'interest income tax'. When you buy your first car, you are subject to 'registration tax'. When you buy pretty clothes and a stroller for your beloved baby, you are subject to 'value added tax'. When you overcome the sorrow of not owning a home and purchase your first home, you are subject to 'acquisition tax'.
Also, if your beloved parents pass away and you inherit something, you will be subject to 'inheritance tax'. If you retire from a job you've been working at for a long time and receive severance pay, you will be subject to 'retirement income tax'. If you stay up late drinking with a friend whose business failed, you will be subject to 'alcohol tax'. If you start smoking again after quitting to soothe your bitter feelings after being betrayed by someone close to you, you will be subject to 'tobacco consumption tax'.


Taxes follow us every moment of our lives, but their faces are truly diverse.
It seems like they are all the same taxes, but they are levied here and there with different names.
If you're going to pay taxes anyway, why not make yourself a little happier? While illegal tax evasion is certainly not a good idea, there's no need to pay more taxes unnecessarily.
First, you need to know what taxes you pay and how you can reduce them.


Annual salary of 100 million won vs. annual salary of 200 million won, why do I pay more than twice as much in taxes even though the annual salary is only twice as much?

Taxes are withheld at source every month based on the simplified tax table, and the exact tax is calculated through a year-end tax settlement once a year.
If your annual salary is 100 million won in 2025, what will your net take-home pay be? Assuming no dependents, after deducting income tax based on the simplified tax table and the four major insurance premiums calculated using the four major insurance rates, your net take-home pay would be 6,502,743 won per month.
The total annual income tax and the four major insurances withheld in this way is 21,967,080 won.
So, what if you increase your income a bit further, reaching 200 million won per year? The calculations reveal that your final income tax burden is 43,898,005 won, and your monthly take-home pay after deducting the four major insurances is 11,275,477 won.


Compared to when the annual salary was 100 million won, the annual salary is twice as high, but the tax is about 3.7 times higher.
Why do we pay more than double the taxes when our annual salary is double? As you might expect, it's because of the progressive tax rate.
When the annual salary is 100 million won, the tax base is 75,406,280 won, so the highest tax rate of 24% is applied, and when the annual salary is 200 million won, the tax base is 168,502,120 won, so the highest tax rate of 38% is applied.
Because there is a difference in tax rates applied depending on the tax base, the tax amount ends up being much higher.

The current top income tax rate is 45%.
Considering the four major insurances, you end up paying more than half of your earnings in taxes and insurance premiums.
It would be unfair if such a high tax rate were applied.
However, progressive taxation plays a role in redistributing income.
The government also collects more taxes from the rich to help the poor.
For the sake of society, people with higher incomes are paying more.

If you want to invest in Bitcoin, do it now: Cryptocurrency tax deferral

You've probably heard stories of people hitting the jackpot with Bitcoin.
It is difficult to reduce taxes on income generated from the transfer of virtual assets.
The acquisition price is also clear, and it is difficult to reflect many additional expenses.
Additionally, you cannot receive tax deductions or tax reductions.
However, you can reduce your tax by adding up the profits and losses arising from transfers during the same tax period.
Therefore, if you have a cryptocurrency that has incurred a loss, selling it and then buying it again is also a method.


How is income from the transfer of virtual currency taxed? Income generated from virtual currency is a new type of income.
Taxing this new income would require a revision to the tax laws.
The tax law was revised to be implemented in 2023 and the tax was to be implemented starting in 2025, but due to lack of institutional preparation, it was extended by two years and put into effect on January 1, 2027.
Unlike the Income Tax Act, the Corporate Tax Act taxes all transactions that increase net assets.
Income generated by the transfer of virtual assets held by corporate business entities is subject to taxation even before 2027.
Therefore, if you want to invest in virtual assets, it is best to do so as an individual, not a corporation, until 2026.


Real Estate Transfer Income Tax Saving Methods Known Only to Those in the Know

The capital gains tax laws have changed a lot in line with real estate policies.
Even tax accountants, who are tax experts, sometimes give up on capital gains tax.
Although it is difficult, you need to be well-versed in the capital gains tax regulations to save taxes legally.
Using expedient methods such as industry agreements or down contracts to reduce taxes can actually cause bigger problems.
To reduce taxes, you must first reduce capital gains.
To reduce capital gains, it is best to reflect as many necessary expenses as possible.
Necessary expenses can be broadly divided into acquisition stage, possession stage, and disposal stage.


Necessary expenses at the acquisition stage include acquisition tax, brokerage fees, legal fees, value-added tax, and bond discount costs.
Although these expenses constitute acquisition cost in accounting, they are still deducted from the transfer price and thus reduce income.
The necessary expenses at the holding stage can only reflect capital expenditures.
In other words, only expenditures that extend the useful life of an asset or increase its value are allowed, and other profitable expenditures are not recognized.
For example, the cost of a veranda chassis, a living room extension, or a boiler replacement are recognized as capital expenditures.
Costs such as replacing wallpaper, sinks, and bathtubs are considered profitable expenses and therefore do not reduce capital gains.
Necessary expenses at the disposal stage include brokerage fees, capital gains tax reporting costs, and advertising fees.
In order to reflect these necessary expenses in the calculation of capital gains, relevant supporting documents are required.
Therefore, if you spend money, you should have good documentation to reduce the amount you lose.


I'm worried about getting caught in the source of funds investigation. Can I get credit for a loan between family members?

If you look at the news, you sometimes see stories about people being investigated for their sources of funds.
Sometimes I feel anxious, wondering if I might get it too.
However, acquiring real estate does not necessarily result in an investigation into the source of funds.
It's not like you're unlucky for no reason.
The National Tax Service is not idle either.
An investigation will only be conducted if there is some suspicion and there is a possibility of tax collection through the investigation.
The National Tax Service is analyzing tax evasion suspicions by introducing the PCI analysis system.
If you analyze your property and consumption by subtracting your income, and your consumption and property increase exceed your income, you may suspect tax evasion.
If a person with an annual income of 50 million won acquires real estate worth 1 billion won or repays debt, the source of the funds will be questioned.
If you have been filing your taxes without any problems, you can confidently explain.


Be careful when dealing with family members.
In reality, borrowing money from family and returning it years later without first writing up a loan agreement can be risky.
This is because the initial borrowing and the repayment of the funds can each be viewed as separate donations.
If you fail to do so, you may end up paying taxes twice.
The statutory interest rate under tax law is 4.6%.
It is also possible to set a lower interest rate than this when writing a loan agreement.
According to tax law, if an amount of approximately 217 million won or less is lent interest-free, gift tax is not levied because the profit from the free loan does not exceed 10 million won per year.
However, since lending money between family members can easily be suspected of being a gift, it is best to give and receive statutory interest whenever possible.

Taxes apply to everyone throughout their life cycle.
However, the types of taxes that interest each age group may differ.
This book organizes taxes of interest in order according to life cycle.
Chapter 1 explains the basic concepts of taxes and the taxes students pay, while Chapter 2 explains taxes and year-end tax settlement that office workers must know.
Chapter 3 looks at how taxes are applied when investing, and Chapter 4 looks at how taxes are applied overall from buying, holding, and selling real estate.
Chapter 5 details taxes that retirees need to know, and Chapter 6 details taxes that retirees need to know when passing on assets to their children.
Finally, taxes on businesses, another source of income besides wages, were covered in Chapter 7.


In this way, the book "Minimum Tax Study" covers all the tax knowledge necessary for everyone, from teenagers who need to understand the concept of taxes, to those in their 20s and 30s who are working or running a business, to those in their 40s who need to manage their finances and engage in real estate transactions, to those in their 50s and older who need to prepare for retirement and inheritance.
Taxes always follow the joys and sorrows of life.
I hope that through this book, you will be able to watch the money leaking out of your wallet without even realizing it.