Onnuri gift certificates join the entertainment-expense extra ceiling — effective 18 September 2026 | 20% limit
From 18 September 2026, Onnuri gift certificates join the traditional-market extra ceiling for entertainment expenses. Today only traditional-market spending and local love gift certificates qualify, so Onnuri certificates only counted when used inside a traditional market. From that date, spending them at merchants outside the market qualifies too. The 20% range of the general ceiling and the 31 December 2028 deadline stay the same.
Conditions used in the video
- Effective date
- 2026-09-18
- Article amended
- 조세특례제한법 제136조제6항
- Extra-ceiling scope (now)
- traditional-market spending · local love gift certificates
- Extra-ceiling scope (from 9/18)
- traditional-market spending · Onnuri certificates · local love gift certificates
- Extra-ceiling range
- 20% of the general ceiling (unchanged)
- Deadline
- through 2028-12-31 (unchanged)
Results
- Extra-ceiling range
- 20% of the general ceiling
- Extra ceiling on the ₩36M SME basic ceiling
- up to ₩7.2M
- How it's recognized
- only what was actually spent
- Basic ceiling for ordinary companies
- ₩12M
- Extra ceiling ends
- 2028-12-31
At a glance
SME basic ceiling of ₩36M, excluding the revenue-proportional add-on. The extra ceiling only recognizes what was actually spent.
- Basic ceiling (SME)₩36M
- Traditional-market/Onnuri/local-love extra-ceiling cap₩7.2M
Onnuri included from 9/18 · only what was spent
- Culture-expense extra-ceiling cap₩7.2M
separate 20% · unrelated to this amendment
Why it works this way
Not everything spent on entertainment becomes deductible. Only spending up to the general ceiling (the basic ceiling plus a revenue-proportional add-on) is recognized, and on top of that, spending on culture and on traditional markets each get an extra ceiling of up to 20% of the general ceiling.
Today the traditional-market extra ceiling covers only two things: spending inside a traditional market and spending with local love gift certificates. Onnuri certificates aren't named in the article, so they only counted as traditional-market spending when used inside the market.
조세특례제한법 제136조제6항, effective 2026-09-18.
- Traditional-market spendingstays in scope
- Local love gift certificatesstays in scope
- Onnuri gift certificatesthe Onnuri certificates defined in 전통시장 및 상점가 육성을 위한 특별법 제2조제12호 get listed alongside them, so they are in scope even at merchants outside the market
The ceiling isn't growing. One more type of spending now falls within the 20% range.
The extra ceiling is 20% of the general ceiling. Looking only at the SME basic ceiling of ₩36M, that's ₩7.2M, and it grows by that same 20% once a revenue-proportional add-on applies. Ordinary companies have a basic ceiling of ₩12M.
The extra ceiling is the smaller of what was actually spent and the 20% cap.
- 20% capgeneral ceiling × 20% (₩7.2M looking only at the SME basic ceiling)
- Actual spendingamount spent via traditional markets, Onnuri certificates, or local love gift certificates
- Extra ceilingwhichever is smaller
Spend nothing on Onnuri certificates and the extra ceiling is ₩0. Unused ceiling doesn't carry over elsewhere.
This amendment doesn't touch the 20% range or the 31 December 2028 deadline. After that date, the culture and traditional-market extra-ceiling scheme itself ends.
This video and explainer cover a rule that has been promulgated but is not yet in force. Details may change through decrees or notices, and the effective date could shift.
In short: from 18 September 2026, entertainment expenses paid with Onnuri certificates at merchants outside a traditional market are also recognized within the 20% extra ceiling, and the ceiling rate and end-2028 deadline stay the same.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
조세특례제한법 제136조제6항 (traditional-market extra ceiling for entertainment expenses)
In force Effective 2026-09-18
Through 31 December 2028, entertainment expenses paid via traditional-market spending, Onnuri gift certificates under Article 2(12) of the Special Act on the Promotion of Traditional Markets and Shopping Districts, or local love gift certificates get an extra deduction within 20 percent of the ceiling amount.
What this means
🔴 'Onnuri gift certificates' is added to the scope list. The 20% range and the 2028-12-31 deadline stay the same.
전통시장 및 상점가 육성을 위한 특별법 제2조제12호 (definition of Onnuri gift certificates)
In force In force
This is the provision that defines Onnuri gift certificates. Article 136(6) of the Tax Special Treatment Control Act cites this definition directly.
What this means
Any certificate meeting this Act's definition of Onnuri gift certificates falls within the extra ceiling even when used at a merchant outside the traditional market.
소득세법 제35조제3항제1호 (basic ceiling for entertainment expenses)
In force In force
The basic ceiling is ₩12M for ordinary businesses, or ₩36M for SMEs under Article 6(1) of the Tax Special Treatment Control Act, multiplied by the number of months in the tax period ÷ 12.
What this means
The general ceiling that the 20% extra ceiling is based on starts here. 20% of the ₩36M SME basic ceiling is ₩7.2M.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Business Entertainment Limit
Frequently asked
What about Onnuri spending before 18 September?
The pre-amendment article doesn't name Onnuri certificates. Spending inside a traditional market still counts as traditional-market spending; when spending at merchants outside the market starts to qualify, and how the effective date splits a single tax period, is set by the 부칙 (transitional provisions).
Does the ceiling grow by ₩7.2M?
No. 20% of the general ceiling is the cap, and only what was actually spent via traditional markets, Onnuri certificates, or local love gift certificates is recognized. ₩7.2M is the cap looking only at the ₩36M SME basic ceiling.
Does it merge with the culture-expense extra ceiling?
No, they're separate. The 20% for culture expenses and the 20% for traditional-market/Onnuri/local-love spending each apply on their own. This amendment only changed the scope list for the latter.
Does the revenue-proportional add-on also count toward the 20%, not just the basic ceiling?
Yes. The extra ceiling is based on the general ceiling (the basic ceiling plus the revenue-based add-on). A company with revenue gets a figure larger than ₩7.2M. Enter revenue in the calculator to see that value.
What happens after 31 December 2028?
The extra-ceiling scheme itself ends. This amendment did not extend that deadline.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.