Vice Minister Kim Yong-beom “Extension review of tax credit for good renters… Needs revision of the tax law”

Input 2020.12.23 15:04 | Revision 2020.12.23 15:07

On the 23rd, Vice Minister Kim Yong-beom of the Ministry of Strategy and Finance said, “If raising the rate of tax deductions is expected to increase the number of people participating in the rent cut, we will include it as a review plan and engage in the discussions of the National Assembly.”

At a regular briefing held after the Emergency Economic Central Countermeasures Headquarters meeting that day, Vice Minister Kim replied about how to raise the tax credit ratio for good renters from the current 50% to 70%.

The government is operating a good renter system in which 50% of the cut is deducted from income and corporate taxes for lessors who voluntarily cut the rent for small business owners. Recently, a member of the Democratic Party, along with Jeon Jeon, proposed an amendment to the Restriction of Special Taxation Act, which would raise the tax credit ratio to 70%.

“However, the plan has not been finalized at this stage,” said Vice Minister Kim. “It is not an issue that can be concluded in a short time because the tax law needs to be revised to increase the tax credit ratio.” He said, “Among the existing measures related to rental fees, areas that need to be supplemented are constantly being reviewed.”

Regarding the so-called’third disaster subsidy’, he said, “We will speed up the work of preparing countermeasures, complete the review within the year, and promote support in January.” However, it clarified the position that it is not considering expanding tax credits for the victims of the novel coronavirus infection (Corona 19) and the formation of additional budgets.

Deputy Minister Kim said, “The biggest focus of customized measures is to provide substantial damage support and prompt execution,” he said. “We are not considering policy menus that require a long time to improve the system, such as expanding tax credits and organizing additional budgets.” In addition, he said, “We are considering a plan that can provide substantial benefits to small business owners and temporary daily workers who are directly or indirectly damaged by reinforced quarantine measures.”

Regarding the recent economic situation, he said, “The amount of movement has rapidly decreased from the end of November due to the upgrade of the distance level, and there is a concern about a contraction in economic and consumption activities.” It is highly likely to be constrained.”

Deputy Minister Kim said, “As the face-to-face service industry, which has a high proportion of employment, such as food and lodging, is mainly affected by the measures to strengthen the distance, there is a great concern that the difficulty in hiring the vulnerable will increase in the future.” Still, he said, “The reduction in the amount of movement is a result of showing that the distancing measures are being kept and operating.”

Vice Minister Kim added, “We will employ more than 500,000 people through direct job programs in January of next year to minimize the job gap caused by the spread of the corona, and we will promptly promote a youth work experience project of 80,000 people.”