한국제도·경제학회

This study empirically analyzes the effect of the 2021 increase in charitable contribution tax credit rates on taxpayers' donation behavior. Previous studies in Korea primarily focused on the shift in tax treatment methods for donations, but research on the effects of subsequent changes in tax credit rates has been limited. Using a balanced panel sample of income tax filers from 2018 to 2022, constructed from income tax return and donation statement data of taxpayers who filed global income tax or wage income tax year-end settlements, this study applies the difference-in-differences method to assess how the 2021 tax credit rate increase influenced charitable giving amounts and participation rates. The findings indicate that, for global income taxpayers, the average donation amount increased following the policy change, particularly among middle-income groups. This increase is largely attributed to greater participation by new donors and the growth of small-scale and non-religious donations. Conversely, wage earners exhibited a decline in both average donation amounts and participation rates despite the tax credit increase, with high-income earners experiencing the most substantial reductions. These tax credits appear to result from interactions with other expanded tax credits, such as those for credit card spending. The results highlight the differential impacts of tax credit changes by income group and taxpayer type, underscoring the importance of considering these differences and policy interactions when designing future charitable giving incentives.