Meanwhile, the government also set exceptional cases in which the credit card income
deduction scheme shall not be applied to the amount paid using credit cards. First of all,
expenses associated with real estate lease and other business income, forest income or
incorporation expenses were excluded from the income deduction scheme. In the case
of one’s unearned income, expenses incurred in the course of earning such income are
excluded in the calculation of the person’s taxable income. Therefore, such an amount is
deemed to have been excluded from credit card payments which are eligible for
deduction from income. In addition, payments associated with an undesirable method of
using a credit card or debit card have been ineligible for deductions. An undesirable
method of using a credit card or debit card defined by the provisions of the Enforcement
Decree means the receipt of a credit card slip which does not involve the delivery of
goods or services or the receipt of a slip carrying an amount which exceeds the amount
of actual purchase. Another example of ineligibility for deductions involves the receipt
of a credit card slip which is issued under the name of another credit card or debit card
participant if the payer had the knowledge of such unethical practice.