SEOUL, SOUTH KOREA – The National Tax Service (NTS) of South Korea is witnessing remarkable success with its newly launched comprehensive income tax refund service, aptly named "One-Click." In the first week since its activation, the user-friendly platform has facilitated tax refund filings for an impressive 400,000 taxpayers, resulting in claims totaling 32.7 billion Korean Won (approximately $24.5 million USD). This surge in adoption underscores the service's appeal, particularly when contrasted with private tax refund services that typically levy fees.
Since its debut on March 31st, "One-Click" has rapidly gained traction. On its inaugural day alone, within a mere six hours of going live at 9:00 a.m. KST, a staggering 280,000 individuals accessed the service via the NTS's Hometax online portal. Of these, 80,000 taxpayers promptly submitted refund applications amounting to 6 billion KRW. This initial enthusiasm has continued, with an average of 60,000 taxpayers per day successfully claiming nearly 4.7 billion KRW in overpaid taxes.
The "One-Click" system offers a significant advantage by consolidating potential tax refunds for the past five fiscal years into a single, easily navigable interface. Users are instantly informed if no refund is available. However, for those eligible, the process of claiming their overpaid taxes is remarkably streamlined, often requiring just a single click and taking less than a minute to complete the application. The platform also allows taxpayers to review and amend their income details and deductions, as well as to include any overlooked deductible items before final submission.
A key differentiator of the NTS's "One-Click" service is its complete absence of fees. This stands in stark contrast to popular private tax refund services like Samjjeomjjeom and Toss Income, which typically charge commissions ranging from 10% to 20% of the refunded amount. Furthermore, by utilizing official NTS data, "One-Click" significantly mitigates the risk of penalties associated with inaccurate or inflated refund claims, a potential pitfall with some private services. The platform also enhances user privacy by eliminating the need to submit additional sensitive personal information such as family relationship certificates, a requirement often encountered with third-party services.
The National Tax Service estimates that approximately 3.11 million individuals are eligible for tax refunds exceeding 5,000 KRW, with the total potential refund amount reaching 291.6 billion KRW. The primary beneficiaries of this service include an estimated 1.6 million individuals engaged in personal service work through platforms like Coupang (an e-commerce giant), Tmap (a navigation app), and Albamon (a part-time job portal). Additionally, around 610,000 pension income earners aged 60 and above, and approximately 750,000 "N-jobbers" holding multiple sources of income, are also significant target groups. These figures highlight the considerable number of taxpayers who have yet to reclaim their overpaid taxes, with an estimated 2.71 million individuals and 258.9 billion KRW in unclaimed refunds still outstanding.
Taxpayers who file their refund claims based on the pre-filled information provided by the "One-Click" service can expect to receive their refunds within one month. Those who choose to modify the pre-filled details before submitting their claims will typically receive their refunds within two to three months, allowing for verification of the amended information.
The overwhelming initial response to the "One-Click" service underscores the public demand for a convenient, accurate, and cost-free way to claim tax refunds. The NTS initiative is expected to significantly streamline the tax refund process for millions of South Koreans, ensuring that they can easily and securely reclaim their overpaid taxes without incurring unnecessary fees or risking potential penalties.
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