The NTS (National Tax Service of Korea) has excluded certain expense items from
eligibility for credit card deductions since the credit card payment is not in compliance
with the objectives of its policies in respect to the tax deduction scheme. For instance,
transactions with the central government or local governments will not be contributory
to enhancing transparency in commercial transactions even when the transaction means
of cash has been shifted to credit cards. Transaction items covered in such category
include premiums paid to the government under the National Pension Act, National
Health Insurance Act, Employment Insurance Act, etc., as well as life insurance
premiums and accident insurance premiums paid to private insurance companies. At the
same time, the example of the eligibility for deduction of those premiums paid for life
and accident insurances sold by a post office, agricultural cooperative, fisheries
cooperative, credit union, or community credit cooperative that belong to the public
sector which is significantly influenced by the government. Another example of
ineligibility for deductions includes various dues and fees including electricity, water
and gas fees paid to the government or public agencies, including tuition fees paid to
different educational institutions, even when such fees were paid using a credit card.